Does anyone now if the restaurant pays different taxes on food/drinks sold and tip/service fees?
Comment on higher wages for the servers... by the customers. Fnbs
squaresinger@feddit.de 1 year ago
What is this nonsense? I mean, since the customers are the only source of income for a restaurant, of course the customers pay for the wages.
But why hide that behind obscure markups (that’s all a service charge/tip is)? Why not just price the food 18% higher and drop the service charge?
That way, the restaurant earns the same money, but the customers actually know what they are going to pay and the restaurant visit doesn’t end on a down note when paying.
watcher@lemmy.world 1 year ago
Tkrun42@lemmy.world 1 year ago
In Washington (everywhere is different) a service fee is taxed as income to the restaurant. A restaurant is not taxed on tips. It’s better for the restaurant to not do a service fee (less taxes) than tips
If a Washington restaurant is charging a service fee, it has to be posted. The verbiage has to say how it’s being used/if the restaurant is taking any portion
tony@lemmy.hoyle.me.uk 1 year ago
People look at the menu, decide the prices are reasonable and eat. They then get hit with an 18% service charge and (in the US) a 20% tip on top.
The restaurant could increase their prices by 18%, but then people would decide to eat elsewhere. Of course they’ll do that anyway after being hit with all the charges, but the owner thinks it’s worth it to get the custom once.
ChickenLadyLovesLife@lemmy.world 1 year ago
Wild that somebody would decide $22.25 is reasonable for chicken wings. Maybe for 100 of them …
tony@lemmy.hoyle.me.uk 1 year ago
They seem to be massively overcharging, which makes the whole thing a lot wilder. At those prices they could afford to pay their staff well and abolish both tips and service charge…
Suspect the owner is just a knob.
nan@lemmy.blahaj.zone 1 year ago
It’s in LA, everything is expensive and well is very relative. Minimum wage is almost $17.