Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-23-2012, 12:46 AM
 
7,099 posts, read 27,180,644 times
Reputation: 7452

Advertisements

I doubt that places like Starbucks, Dunkin Donuts have the same tipping situation as a nice restaurants.

You go to a nice restaurant because the food is good and the service is nice. It is worthwhile to hire the staff that brings in good, regular customers. Few would work at a place that doesn't treat the staff right about tips. If service is bad, you go elsewhere even if food is good.

If the owner had to pay more, thus cutting HIS take home pay, the cost of the meal would go up, customers would cease to come and the restaurant would close. Tips are important to keeping a GOOD staff.

I am curious as to whether or not people tip at places like Starbucks. There is not the same customer/service staff as there is in a good restaurant. I know that we never do, and I don't think I have ever seen anyone else tip either.
Reply With Quote Quick reply to this message

 
Old 08-23-2012, 04:09 AM
 
5,190 posts, read 4,837,755 times
Reputation: 1115
well I can't see why the owner would just up the prices of the food - knowing that this would cause his business to fail.

If he did so , then he would be one very poor business owner.

No, he would just have to make do with less take home profit, or move on to something else.

The same market factors would affect him here.
Reply With Quote Quick reply to this message
 
Old 08-23-2012, 05:08 AM
 
Location: Florida
23,171 posts, read 26,189,754 times
Reputation: 27914
Quote:
Originally Posted by Kenneth-Kaunda View Post
well I can't see why the owner would just up the prices of the food - knowing that this would cause his business to fail.

If he did so , then he would be one very poor business owner.

No, he would just have to make do with less take home profit, or move on to something else.

The same market factors would affect him here.
If it costs, say, $25 for dinner....$20 price and $5 tip.....or $25 price,no tip.....why would the business fail?
Reply With Quote Quick reply to this message
 
Old 08-23-2012, 07:07 AM
 
3,697 posts, read 4,996,285 times
Reputation: 2075
Quote:
Originally Posted by Kenneth-Kaunda View Post
is that really the case in all places though, as I've heard that some businesses keep most of the tips for the owner.

and how about the Starbucks, Dunkin Donuts cases - wasn't something like this happening there?
No owner can never keep tips. Here is what they attempted to do. If tips are a regular part of the job and the person can make $30 or more a month from tips then you can pay the lower wage(down to $2.13). If not you must pay $7.25.

Starbucks and Dunkin are places where people usualy don't get much in tips(esp. dunkin). The lawsuits for starbucks revolve around should shift managers get tips or not. Dunkin on the other hand it revolves around their no tip policy(and the fact they were donating from what is a tip jar to charity).
Reply With Quote Quick reply to this message
 
Old 08-23-2012, 07:09 AM
 
3,697 posts, read 4,996,285 times
Reputation: 2075
Quote:
Originally Posted by Kenneth-Kaunda View Post
well I can't see why the owner would just up the prices of the food - knowing that this would cause his business to fail.

If he did so , then he would be one very poor business owner.

No, he would just have to make do with less take home profit, or move on to something else.

The same market factors would affect him here.
If he moves on to something else, the waitress is out a job. He needs profit period, resturants are notorious for having small profit margins.
Reply With Quote Quick reply to this message
 
Old 08-23-2012, 07:15 AM
 
3,697 posts, read 4,996,285 times
Reputation: 2075
Quote:
Originally Posted by old_cold View Post
If it costs, say, $25 for dinner....$20 price and $5 tip.....or $25 price,no tip.....why would the business fail?
Because as it is currently set with the tip the manager could pay the staff down to $2.13. Without the tip they must pay $7.25 an hour. And if waitresses didn't get paided enough they may leave for other jobs. It will drive the cost of the food up. If the cost goes up people eat out less and this again effects you economy of scale wise(i.e. The less food you buy the more per item it is going to cost you).

Not everyone tips but with tips a waitress could be earning upwards of $10.00 an hour. If you have to pay $10.00 an hour or more for staff vs. $7.25 or less then that labor must be built into the price of the food and it will go up.

Last edited by chirack; 08-23-2012 at 08:29 AM..
Reply With Quote Quick reply to this message
 
Old 08-23-2012, 11:26 AM
 
Location: Ohio
24,621 posts, read 19,159,948 times
Reputation: 21738
Quote:
Originally Posted by Kenneth-Kaunda View Post
seems like a scam to me, one that benefits the owner
(Sigh), maybe you should wait tables (like I did). Or maybe you should try eating in a better class of restaurants.

You, as a customer, are competing against other customers for service, are you not?

Yes, you are.

Depending on restaurant policy, wait-staff are assigned a number of tables. For example, the Olive Garden limits 3 tables per wait-staff. Other restaurants will allow 4 or even 5 and some restaurants leave it up to the host/hostess, who knows the wait-staff, has evaluated them, and knows the strengths and weaknesses of each, and then the number of tables are assigned based on that.

So here you are, in a restaurant, you and three other tables -- and one server.

You are competing for the server's attention.

Now, if I do absolutely nothing, and the server is attentive to me, and meets my every need and expectation, then I reward the server handsomely, and I don't mean 15%-20% -- I mean 25% to 35%.

If the server meets most of my needs/expectations they get 20%.

If I have to work to get the server's attention, then I have to pay myself wages -- only fair right? --- and so that comes out of the server's tip -- meaning they get 10% or less or nothing at all if I have to bust my ass and work really hard to have a decent meal.

I mean the whole point of going out to eat is to have a meal without having to work. If I have to spend half of my time flagging down the wait-staff, because they forgot this or that, or this or that is wrong, or I need something else, then I am doing way too much freaking work -- and I deserve wages for that.

Restaurants thrive on repeat business from loyal customers.

The wait-staff will make or break a restaurant.

A good wait-staff makes happy customers who are willing to return again and again to enjoy the experience, and both the wait-staff and the owner(s) profit.

Dining out...

Mircea
Reply With Quote Quick reply to this message
 
Old 08-23-2012, 12:23 PM
 
1,552 posts, read 3,168,087 times
Reputation: 1268
Quote:
Originally Posted by Kenneth-Kaunda View Post
but here is the strange thing - because knowledge should not really be a factor - in the real world of business it is supply and demand which sets the wage rate, not knowledge.

for instance, an overabundance of learned history professors will lower their wage, but, if at the same time we have a massive shortage of semi-skilled bus drivers their pay will start to equalise, even swap positions.


You say pouring a coffee 'shouldn't' pay so much, but this is only because it is perceived as low status - hence the justification for paying less, and removing the tips.

However, this is just your subjective opinion, nothing else.

did you know that in the SU the train drivers were actually paid more than the doctors because they were valued higher - but I'm sure they had a lot less 'knowledge'.

so it's all about status, pecking order and class system here.

People will always hide behind this to justify their greed and avarice.

A good reason why we need a democratic state, based on Marxist principles.
Its not a subjective opinion-anybody can pour coffee. It requires no skills whatsoever hence it does not command high pay.
Reply With Quote Quick reply to this message
 
Old 08-23-2012, 12:28 PM
 
1,552 posts, read 3,168,087 times
Reputation: 1268
Quote:
Originally Posted by Kenneth-Kaunda View Post
it certainly is master and serf type territory.

The girl or boy must grovel enough so that they get paid, whilst the owners are laughing all the way to the bank!
yea those owners laugh all the way to the bank in the resreraunt industry lmao
you realize most resteruants fail and even in the ones that don't owners often work 12-16 hours a day 7 days a week
Reply With Quote Quick reply to this message
 
Old 08-23-2012, 04:42 PM
 
48,502 posts, read 96,838,702 times
Reputation: 18304
Its part opf what waiters salaries are based on;basically.Without it the cost of fodd service would need to rise.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads

All times are GMT -6. The time now is 01:57 AM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top