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DestraD t1_iqqyxy1 wrote

You tip for the service, unlike buying a product a good service means a good tip, that rewards people good at there Job and punishes people doing the bare minimum.

It also allows people a job with relatively low skill to earn a decent rate of income.

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AquilaSPQR t1_iqr34j5 wrote

It's the manager's duty to ensure good service, preferably with wages good enough so that employees will care about not losing their job.

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moral_luck t1_iquwef1 wrote

Managers make less than servers....because of tips.

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CantRemember45 t1_iqr6n6v wrote

dead wrong. that’s how it’s framed. you tip so managers don’t have to pay their staff that gets paid under minimum wage. it’s a terrible manipulative practice that needs to end, America and elsewhere

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moral_luck t1_iquweka wrote

Managers make less than servers....because of tips.

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CantRemember45 t1_iqvglkm wrote

most people would kill to work where you work

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moral_luck t1_iqvryz7 wrote

Maybe. But managers get paid shit. Most managers are lucky to get more than $25/hr. With even keeping 10% tips (bad tips minus tipouts), servers only need to sell $250 in sales per hour to make that without any base pay.

Servers would make much less money if "the owners paid them". It would become a job someone would only do in absolute desperation rather than by choice. Max pay most places (if tips were eliminated) would be $12/hr.

Tips are just commission set by the customer.

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roguedevil t1_iqrg7hd wrote

>unlike buying a product a good service means a good tip

Why? Why isn't the service built into the price? What even is good service?

If I go see a psychiatrist or physician and they make me feel better, offer me coffee, and make me feel at home, then you can say that's great service. Yet no one tips their doctors. We even find that unethical as a society. The reason we tip wait staff is because we know they get paid shit and are guilted into doing so.

We tip waiters 15 - 20% just for doing their job. Rarely is the service "exceptional", because by definition, it can't be.

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indyk t1_iqrgglx wrote

Why shouldn’t it be regulated just like any other job? I mean I don’t get tipped, but work well.

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DestraD t1_iqvgap7 wrote

It's customer service they deserve it, I personally tip 20%+ of the sale, restaurants have to operate and crazy low margins unless they are upscale it allows the food to be competitively priced, Tipping allows skilled staff to get ahead in life without a ridiculous tax burden as well as have flexible hours that allow them to complete degrees to go into a higher paying workforce generateing more taxes. It's fair and it's works, regulating restaurants in the US would just drive up costs and the places would close people have to be able to afford the food they want to purchase.

You could regulate it like a normal job but that $10 burger now becomes $20 and that's going to prevent lower income people from going out at all, aswell as reducing pay for wait staff that on good days can make over $25-$30 per hour of work to $15 that won't pay rent.

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indyk t1_iqvi9ni wrote

Interesting approach.

If I understand correctly, your arguments for the tipping are

  1. Income tax relief for the young
  2. Progressive meal prices depending on the income.

As for 1. - there are better ways of doing that. Like in my country people under 26 don't pay income tax at all. None of them, why should we cherry pick waiters only? I don't agree with this argument.

  1. I guess this is somewhat self-regulated. the poorer you are, the less fancy restaurants you choose and the more you cook your food yourself.

Also with 10-20% tip your burger now costs 12$, not 20$ and you know the price you're paying. No hidden cost.

I don't get why the waiters would get less in that case. Restaurants need waiters more then young people need restaurants as their employers. If the restaurant doesn't pay enough, they'll find other jobs.

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DestraD t1_ir3lt5o wrote

Your country also isn't the United States with 320 Million people, the circumstances are different here, Low Skilled Labor Jobs are Competitive, a Waiter Or Waitress makes the most because of Tips also you have to understand here Higher Wages have hidden costs what employees makes the employer also has to pay more to Insure, Higher Unemployment Tax, Higher Fico Taxes an Employer pays 7.5% of Wages as a social security and Medicare tax as the Other 7.5% is payed by the employee. Restaurants are extremely competitive, so very low margins that's why fast food is so popular here lower operating costs because of large scale distribution centers.

Tips go largely unreported as taxes, which allows people to afford to live 30% of your income when your poor is the difference between poverty and the ability to improve your life and gain higher skill quality.

Food Prices increase as costs increase most people running Restaurants are not wealthy your probably lucky to gross 60 or 70k with one location unless you sell upscale food in a highly urban area, most of the United States is Suburban or Rural, and the Tips mostly come into play in Rural Small towns, your local diner is a primary employer.

We have regulated standard prices in the fast Food Industry and they are the lowest payed employees in the Food Service Sector. Your McDonald's Chipotle Taco Bell Wendy's etc etc.....

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indyk t1_ir4azgm wrote

The US is different, but I’d think that not by much. The same factors are at play. The thing is that we don’t have indulge in theoretical analysis.

We can simply look at how it works in other places in the world. I can surely agree that restaurant business in Europe is not an easy one. However it does work. The prices of restaurant meals are lower than in US even before that awkward tip thing that you tax your customers with. Are the raw products cheaper in Europe? I guess not.

I think you have taken the perspective of the restaurant owner. And yes, it’s better for him to be able to pay less for the work force.

However it’s worse for employees and it’s worse for customers. I’d rather go with that.

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DestraD t1_ir5k554 wrote

A business has to turn a profit, first no profit no business no employees most people that do own restaurants are not wealthy, you have to consider all perspectives not just one.

Pretty sure europe is more expensive and has a much smaller population and not as much competition.

I can tell you atleast in Florida the employees would much rather have Tips then a standard $15 wage.

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