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Tipping Tipping

11-20-2015 , 08:08 PM
Quote:
Originally Posted by JimHammer
How does any industry survive that pays it's employees hourly?
It's profit margins are higher? Production isn't a factor (security services)?

Quote:
Originally Posted by JimHammer
Why work for an hourly wage if there isn't any incentive to do a good job?
Because it's extra income that we piss away gambling?


Quote:
Originally Posted by JimHammer
The best servers are going to work where they can make the most money. But there are a lot of servers who will work at a non-tipped place where they know how much they are going to make at the end of the day. And they will provide good service because that's what they are being paid to do.
I agree with the bold text above. I never said that the non-tipped servers wouldn't provide good service. I said they have less monetary incentive to provide good service. We'll get BETTER service out of the tipped employees.

So, why get rid of the tipped model?
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11-20-2015 , 08:17 PM
Bet,

The number one reason to get rid of the tipped model is so restaurants can afford to pay non-server/BOH staff more.
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11-20-2015 , 08:20 PM
Jim,

Quote:
Originally Posted by JimHammer
The best servers are going to work where they can make the most money.
Exactly. Which is why many of the best servers in the world work at non-tipped places.
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11-20-2015 , 08:20 PM
Quote:
Originally Posted by EfromPegTown
I don't understand Bet Against at all.

If someone wants to open a restaurant, they should be on the hook for the actual operating costs of the restaurant, labour included.
Sorry if I'm being confusing. I'm not trying say anything about how things should be.

I'm saying:
  • All things being equal, the tipped model will be more profitable/sustainable than the non-tipped model.
  • The tipped staff will have more incentive for higher sales/service
  • The non-tipped model will lose more money on slow days and make the same on busy days.
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11-20-2015 , 08:22 PM
Quote:
Originally Posted by El Diablo
Jim,



Exactly. Which is why many of the best servers in the world work at non-tipped places.
Who are these servers and what/where are these places?
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11-20-2015 , 08:32 PM
Quote:
Originally Posted by BetAgainst



I agree with the bold text above. I never said that the non-tipped servers wouldn't provide good service. I said they have less monetary incentive to provide good service. We'll get BETTER service out of the tipped employees.
You get better service from good servers. If tipping made service better, every server at Chili's would provide exactly the same service. You take a good server out of a tipped place and put them in a non-tipped place and they are still a good server.
Quote:
So, why get rid of the tipped model?
9 Reasons We Should Abolish Tipping, Once And For All
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11-20-2015 , 08:37 PM
Quote:
Originally Posted by BetAgainst
Sorry if I'm being confusing. I'm not trying say anything about how things should be.

I'm saying:
  • All things being equal, the tipped model will be more profitable/sustainable than the non-tipped model.
  • The tipped staff will have more incentive for higher sales/service
  • The non-tipped model will lose more money on slow days and make the same on busy days.
Do you have any proof of this, or are you just projecting from personal experience?
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11-20-2015 , 08:38 PM
Bet,

For example...

http://www.thomaskeller.com/tfl
http://www.thomaskeller.com/per-se
http://ateliercrenn.com/
https://website.alinearestaurant.com/

I haven't been to the last one yet, but at the first three the service is spectacular.
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11-20-2015 , 08:44 PM
An interesting read:

Why we should get rid of tipping

Quote:
Today’s tips, however, are not an effective method of motivating servers because tips are given at the end of the meal, not at the beginning. It is hard to motivate servers when they have no idea how large an incentive payment they will receive.

This problem is borne out by research that found “tipping was not significantly related to servers’ or third-parties’ evaluations of the service.” Many people tip the same amount whether the service is good or bad.
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11-20-2015 , 08:53 PM
Quote:
Originally Posted by JimHammer
You get better service from good servers. If tipping made service better, every server at Chili's would provide exactly the same service. You take a good server out of a tipped place and put them in a non-tipped place and they are still a good server.
Go play poker and tip your girl $5 a round. Then change rooms and stiff your new girl every round. Do this a couple times and get back to me.

The tipped employee has MORE MONETARY INCENTIVE to provide fast/friendly service (along with colder beers and bigger shots) than the non-tipped employee.

Quote:
Originally Posted by JimHammer
It's going to take me a while to shoot all of those down but El Diablo should be able to eliminate #1 and take a notch out of that writers credibility.
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11-20-2015 , 08:58 PM
Bet,

Now just imagine if someone were incented to give every customer excellent service...
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11-20-2015 , 09:01 PM
Quote:
Originally Posted by El Diablo
Bet,

For example...

http://www.thomaskeller.com/tfl
http://www.thomaskeller.com/per-se
http://ateliercrenn.com/
https://website.alinearestaurant.com/

I haven't been to the last one yet, but at the first three the service is spectacular.
Per Se, New York City and the French Laundry, Yountville
Gratuity included the $295 price of the nine-course menu, but additional tips aren't forbidden. Thomas Keller uses the same system at his Napa Valley restaurant.

That was my first google... I might look at the others later.
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11-20-2015 , 09:10 PM
Quote:
Originally Posted by JimHammer
Do you have any proof of this, or are you just projecting from personal experience?
Both.
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11-20-2015 , 09:13 PM
What is getting lost in the tipped vs. non-tipped discussion is that there can be a middle ground. Instead of having either 15-25% tips or 0% tips there can be a model where there are tips but only constitute a smaller percentage of a server's wage. Let's say 5% on average.
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11-20-2015 , 09:14 PM
Bet,

What is your point? While it's not FORBIDDEN if you insist on leaving an additional tip at fl and per se, gratuity/service is included at these places and there's no need to tip, and they make that very clear to diners. It's printed right on the menu.

The servers make ballpark $100k salaries.
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11-20-2015 , 09:45 PM
Quote:
Originally Posted by BetAgainst
Both.
Feel free to share your proof then.
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11-20-2015 , 09:56 PM
Quote:
Originally Posted by BetAgainst
Go play poker and tip your girl $5 a round. Then change rooms and stiff your new girl every round. Do this a couple times and get back to me.

The tipped employee has MORE MONETARY INCENTIVE to provide fast/friendly service (along with colder beers and bigger shots) than the non-tipped employee.
You're assuming both are working in a tipped environment. If one is working for tips and the other is making a fixed rate, that makes for a better comparison. Prove that one gives better service than the other.

Edit: In your first example, the server is going to pay better attention to the customer tipping her well at the expense of other customers. So while one customer is getting great service, her overall performance may be less than someone who gets a regular hourly wage.
Quote:


It's going to take me a while to shoot all of those down but El Diablo should be able to eliminate #1 and take a notch out of that writers credibility.
I eagerly await your reply to each point. Please provide proof for each rebuttal, not just anecdotal evidence.

Last edited by JimHammer; 11-20-2015 at 10:02 PM.
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11-20-2015 , 10:51 PM
Quote:
Originally Posted by El Diablo
Bet,

What is your point? While it's not FORBIDDEN if you insist on leaving an additional tip at fl and per se, gratuity/service is included at these places and there's no need to tip, and they make that very clear to diners. It's printed right on the menu.

The servers make ballpark $100k salaries.
They're tipped employees.

Beyond accepting and paying taxes on the the tips they receive they also receive a gratuities.

Those establishments fit into the tipped restaurant model.

A "non-tipped" restaurant model:

+ Employees are forbidden to accept tips (policy).
+ No Service Charges are added to the guests bill.
+ No Gratuities are added to the guests bill.
+ It is stated on the menu that no employee accepts tips of any kind.
+ No employee earns any percentage of income through tips (DOL definition)
+ The servers are paid a flat hourly wage or salary.

The tipped vs non-tipped debate I have been engaged in centers around one restaurant with the standard tipped model vs the same restaurant that does away with all tips, increases menu prices, while using the gains from increased prices to pay staff more. All they get is their paycheck.
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11-20-2015 , 10:58 PM
Quote:
Originally Posted by BetAgainst
Quote:
Originally Posted by El Diablo
Bet,

Well, either way, you don't appear to understand how tip credit wages work.
Quote:
Originally Posted by El Diablo
Bet,

Your labor cost calculations are wrong because:

1) if there's a prolonged slow period where wages+tips for the pay period are less than minimum wage, the restaurant still owes the employees at least minimum wage.
Quote:
Originally Posted by JimHammer


I eagerly await your reply to each point. Please provide proof for each rebuttal, not just anecdotal evidence.
http://www.huffingtonpost.com/2014/1...n_5991796.html

Pretty sure that tip credit wages tear apart #1 here.
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11-20-2015 , 11:09 PM
Quote:
Originally Posted by BetAgainst
http://www.huffingtonpost.com/2014/1...n_5991796.html

Pretty sure that tip credit wages tear apart #1 here.
Quote:
This is a great system for the restaurant industry, because it lets businesses pay less than the minimum wage in almost every state. But it contributes to poverty among the waiters and waitresses who toil in diners and other inexpensive restaurants across the country. (Servers in higher-end places tend to earn a livable wage.) In fact, servers are nearly three times as likely as other workers to experience poverty, according to a March 2014 report from the National Economic Council, the U.S. Department of Labor and others.
Maybe read each section, not just the headline.
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11-20-2015 , 11:29 PM
Quote:
Originally Posted by BetAgainst

I'm saying:
  • All things being equal, the tipped model will be more profitable/sustainable than the non-tipped model.
  • The tipped staff will have more incentive for higher sales/service
  • The non-tipped model will lose more money on slow days and make the same on busy days.
Bet, I'm not quite ready to concede these points. The first point is the general question, which is what we're all trying to figure out. So onto the second point, on it's surface yeah, seems sort of logical, but I don't think you're giving enough credit to the model of an employee getting paid hourly what they would be making with their base and tips. You seem to indicate that they'd suddenly not give a **** about their job, which is the equivalent of saying all us hourly workers should be slacking off and sucking cuz we don't work for tips or incentives. I'm not saying you're dead wrong, but I'm certainly saying that it's just not clear. I think those employees might absolutely do a fine job. No way is it obvious they wouldn't.

Third point I just can't agree with. We have to assume that any restaurant would quickly get a sense of what their busy days are and which days are slower, and they'd staff appropriately. There might be some incremental difference, but that's all it would be, incremental.

And finally, it's not out of the question at all that the public would find themselves loving no-tip establishments. My point of reference is the Uber model. I absolutely love the idea of not tipping, and having that cost just rolled into the cost of the ride, which I think is roughly the same as taking a cab. People might love it and then it becomes a huge win all around, for the restaurant, the servers, and the public. That is not a crazy idea.
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11-21-2015 , 12:16 AM


Does this mean they actually do add an 18% gratuity, or just that they might decide to on a whim?
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11-21-2015 , 01:25 AM
I know when I was a server it was up to me when I served parties of 8 or more whether to auto-grat them.

Some servers would make a show of it trying to imply/incentivize a larger tip.

The risk you ran was the party assuming the tip was already automatic because the host/hostess would tell the party when sitting them, sometimes even if you asked them not to.

First impressions/appearances weren't always telling too, vis a vis size of tip.
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11-21-2015 , 01:27 AM
Quote:
Originally Posted by El Diablo
Bet,

For example...

http://www.thomaskeller.com/tfl
http://www.thomaskeller.com/per-se
http://ateliercrenn.com/
https://website.alinearestaurant.com/

I haven't been to the last one yet, but at the first three the service is spectacular.
When I read on this they cited Keller's restaurant(s) as a non-tipping establishment that instituted an automatic service charge, but also said they still accepted tips.

Quote:
Per Se, New York City and the French Laundry, Yountville
Gratuity included the $295 price of the nine-course menu, but additional tips aren't forbidden. Thomas Keller uses the same system at his Napa Valley restaurant.
http://www.grubstreet.com/2013/06/re...cept-tips.html

I dunno tho, just passing along something I read. I have no firsthand experience.
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11-21-2015 , 02:45 AM
Bet,

Quote:
Originally Posted by BetAgainst
vs the same restaurant that does away with all tips, increases menu prices, while using the gains from increased prices to pay staff more. All they get is their paycheck.
The French Laundry increased their base menu price from like $240+whatever you tip to $295 with service included, and used the included service charge to give servers a nice fixed salary and increase wages of other staff.

Look at the bottom of these menus. It's harder to be more clear than this:

http://cdn.thomaskeller.com/sites/de...er_tasting.pdf
http://cdn.thomaskeller.com/sites/de....20_dinner.pdf
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