Why Tipping Prompts Are Suddenly Everywhere
wsj.com
wsj.com
“It makes me feel uncomfortable as a business owner to know people are like, ‘Why doesn’t she just pay them more?’ It’s just not that simple,” Vayda says. Ultimately, she says retaining staff is more important than the possibility of annoying some customers. "
She can't afford to pay her employees an extra 200 a pay check? Yet she is bringing in that much extra money through a tip screen. She can afford it.
Edit: some spitball math, if she's getting an extra %15 in revenue from a quarter of her sales (if 1-in-4 tip), she's taking in approximately $27k every 2 weeks. She could raise her prices by less than 4% to cover paying her employees more.
She has options that are alternative to frustrating or bothering her customers to subsidize her wages.
A nice way to handle this would be to heavily advertise that gratuity is included on the menu and spell out per item what the pre-charged gratuity is.
In order words instead of just showing the price+gratuity on the menu:
Hot Dog - $12
show the breakdown:
Hot Dog - $10 + $2 Gratuity
The whole idea in the first place was that those jobs are allowed to pay less than minimum wage because providing good service could earn the employee potentially far more money through tips. That's the social contract we agreed to, which is now being contorted to absurd extremes.
Why not pay them the wage for the job as described and have tipping as the reward for exceptional service?
I don't tip on credit card except at restaurants. Everywhere else, if I'm tipping, it's cash into a jar, or I'm simply not tipping.
And if I see your "charity" on a processor screen, I will add you to my "never donate to them list".
no tip jar.
As dumb as it is, Americans are comfortable with it. They feel weird not doing it. Even the employees usually end up preferring it, because they can do quite well on it. Tip pooling smooths out some of the worst inequities, even though some days employees do indeed get boned.
I think if we could just wave a magic wand and make it all go away all at once, we'd settle into that and tipping would seem as weird to us as it does to everybody else in the world. If doing it piecemeal could work, it would already have succeeded. Instead, most attempts at it get reverted.
I consider a tip to be something I give to reward exceptional service, and I’m definitely not tipping you before you actually do anything other than take my money.