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Old 01-06-2019, 05:54 PM
 
13,811 posts, read 27,454,017 times
Reputation: 14250

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Quote:
Originally Posted by Jim1921 View Post
There is a huge difference between gross margins and operating margins.

Profit margins are mostly in the single digits.

https://pos.toasttab.com/blog/averag...-profit-margin

https://smallbusiness.chron.com/aver...ant-13477.html

https://www.forbes.com/sites/sagewor.../#2e060de327f9
Yes I'm familiar with overall gross vs net but that wasn't what was brought up.

Go back and read the thread. His statement tried to correlate business failures on meal margins. The per meal margin is extremely high as I've already discussed, it's the overall net that leads to the failure. Lots of overhead and waste in the business.

 
Old 01-06-2019, 06:14 PM
 
1,067 posts, read 624,417 times
Reputation: 1258
Quote:
Originally Posted by wheelsup View Post
Yes I'm familiar with overall gross vs net but that wasn't what was brought up.

Go back and read the thread. His statement tried to correlate business failures on meal margins. The per meal margin is extremely high as I've already discussed, it's the overall net that leads to the failure. Lots of overhead and waste in the business.
I did read the thread. He referred to the meal profit, not the meal gross margin. Here was his comment:

“It’s a very small percentage of profit on each meal unlike profit margins for other sorts of major work.“

Secondly, your quoted gross margins are also wrong. You may want to read up on that was well.

This link shows some of the higher ranges:

https://yourbusiness.azcentral.com/g...nts-28359.html


When you pull up others, you will see margins of 1/3 or so.

Last edited by Jim1921; 01-06-2019 at 06:29 PM..
 
Old 01-06-2019, 06:43 PM
 
6,362 posts, read 4,187,402 times
Reputation: 13064
Quote:
Originally Posted by wheelsup View Post
That's actually not true, most meals have a very high margin. Beverages even more so.
It’s true, the percentages of failure were actual statistics from several studies and a significant reason is the number of overhead costs involved in running a restaurant.

They are not my numbers that I mentioned and I certainly don’t need to defend the restaurant industry.

Eating out is optional, so the benefit is you have a choice to eat out or cook for yourself and save some money!
 
Old 01-07-2019, 12:42 AM
 
15,639 posts, read 26,263,376 times
Reputation: 30932
Quote:
Originally Posted by Yeledaf View Post
Are folks like me, who live on Social Security or other fixed income, justified in reducing the level of tipping?

The prices of restaurant meals have gone through the roof, partly to cover higher minimum wage (currently $11.50 in my state, rising to $13.50 in 2020; higher in some cities etc)., but way beyond that, to really outrageous levels — at least where I live.

I used to automatically tip 20%, but now with restaurant prices where they are, I just can’t afford it. I’m lowering my standard tip to 10%.

How about you?
Only eight states mandate workers who work for tips be paid a full minimum wage, other than that, they live off their tips and often don’t make minimum wage.

Please tip. If you have the money to eat out, you have the money to tip.
__________________
Solly says — Be nice!
 
Old 01-07-2019, 12:23 PM
 
Location: USA
3,568 posts, read 1,346,473 times
Reputation: 4221
Quote:
Originally Posted by Tallysmom View Post
Only eight states mandate workers who work for tips be paid a full minimum wage, other than that, they live off their tips and often don’t make minimum wage.

Please tip. If you have the money to eat out, you have the money to tip.
You're playing fast and loose with the facts. Restaurant owners can pay low wages as long as the employee earns enough in tips to add up to the federal minimum wage. Otherwise the employer must make up the difference.

Tipping is optional. It's a bonus for good service and a pleasant experience. But most people have turned tipping into a subsidy for cheapskate employers, and it will continue to be that way unless people stop tipping.

What people can afford is not your business. You can't dictate whether people can eat in or out or if they chose to tip or how much - that's their business.

Last edited by applej3; 01-07-2019 at 12:33 PM..
 
Old 01-08-2019, 10:46 PM
 
10,755 posts, read 5,672,124 times
Reputation: 10879
Quote:
Originally Posted by Tallysmom View Post
Only eight states mandate workers who work for tips be paid a full minimum wage, other than that, they live off their tips and often don’t make minimum wage.

Please tip. If you have the money to eat out, you have the money to tip.
If they aren’t making at least minimum wage, their employer is breaking the law.
 
Old 01-09-2019, 12:17 AM
 
1,950 posts, read 1,129,168 times
Reputation: 1381
Quote:
Originally Posted by Tallysmom View Post
Only eight states mandate workers who work for tips be paid a full minimum wage, other than that, they live off their tips and often don’t make minimum wage.

Please tip. If you have the money to eat out, you have the money to tip.

If they aren't making minimum wage, that's their fault for allowing that to happen. They should report the employer and move on.
 
Old 01-09-2019, 06:15 AM
 
Location: Censorshipville...
4,437 posts, read 8,132,491 times
Reputation: 5021
Right or wrong, this is what I do:

For full service restaurants the tip starts at 20% and slides up and down depending on service. I've tipped more than 20% when service was excellent and I've tipped squat when I thought they deserved that.

For fast casual places where you go to the counter to order and they bring out the food for you, it starts at 10%. Reason being is they're not wait staff that comes and brings me/refills drinks or condiments. They're paid at least the minimum wage so are not tip dependent.
 
Old 01-09-2019, 06:21 AM
 
5,985 posts, read 2,917,886 times
Reputation: 9026
Quote:
Originally Posted by applej3 View Post
Tipping is optional. It's a bonus for good service and a pleasant experience. But most people have turned tipping into a subsidy for cheapskate employers, and it will continue to be that way unless people stop tipping.

What people can afford is not your business. You can't dictate whether people can eat in or out or if they chose to tip or how much - that's their business.
Don't use this kind of mental gymnastics to justify being cheap. In the US, tip if you're going to eat out, assuming you get anything but terrible service. It's not a bonus.

If someone wants to be cheap, that's fine, but let's call it what it is.
 
Old 01-09-2019, 07:54 AM
 
Location: USA
3,568 posts, read 1,346,473 times
Reputation: 4221
Quote:
Originally Posted by Lekrii View Post
Don't use this kind of mental gymnastics to justify being cheap. In the US, tip if you're going to eat out, assuming you get anything but terrible service. It's not a bonus.

If someone wants to be cheap, that's fine, but let's call it what it is.
What are you talking about?
I give a decent tip unless service is terrible.
I'm not cheap nor do I need to justify anything.

Do some research.

If you want to subsidize cheapskate employers and pretend you're a good person helping underpaid workers, that's your prerogative. But trying to turn the tables and attack me isn't going to work. Nice try.

Like it or not, tipping is optional...a bonus for going above and beyond.

Last edited by applej3; 01-09-2019 at 09:18 AM..
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