YATT: Pete visits a no-tip restaurant

[Chromagnus]

Which is nice in theory, except that it already raised the price of my lunch by about 20%. And that was just the 2019 wage increase from $10 to $11 an hour.

This just sounds like a restaurant wanting to up prices for another reason. There is no reason that a $10 burger will become a $12 burger just by increasing wage $1. Even on a lower scale a $5 item won't become a $6 item by paying it's employees $1 an hour more. The only way that math makes any sense is if they are doing incredibly little business.

 

[pmv]

Which is nice in theory, except that it already raised the price of my lunch by about 20%. And that was just the 2019 wage increase from $10 to $11 an hour.

In fact, I remember McDonalds publicly saying that they were not going to increase food prices because of the wage increase. In their defense, they waited about 4 months before actually doing so, and they did it right around the same time they added the self-order kiosks and got rid of one of their cashiers. But I'm sure that's all a coincidence, right?

So you are saying that increasing the cost of labour encouraged investment and development of new technology and a concequent improvement in productivity? Isn't that supposed to be a good thing? Or is it better to keep labour cheap so there's no reason to invest in equipment or develop new tech and improve anything?

 

[Craig234]

Which is nice in theory, except that it already raised the price of my lunch by about 20%. And that was just the 2019 wage increase from $10 to $11 an hour.

In fact, I remember McDonalds publicly saying that they were not going to increase food prices because of the wage increase. In their defense, they waited about 4 months before actually doing so, and they did it right around the same time they added the self-order kiosks and got rid of one of their cashiers. But I'm sure that's all a coincidence, right?

Next update for you:

Not everything businesses say about why they raise prices has to be true. Ya, it's those damn minimum wage increases, that's it! BTW, they're headed toward kiosks with or without the minimum wage increase.

 

[NoTine42]

Evidence?

Why Restaurants Are Ditching The Switch To No Tipping

It's customer and staff complaints that did away with the model to start, but that's also what's bringing the tradition back to restaurants that've been experimenting with the policy to even out pay.

www.npr.org

On what made him decide to switch back to tipping

Attrition. We were losing staff, servers mostly. Kitchen was of course happy and turnover was nonexistent. And senior staff in the front of the house were happy. We were continuing to hire young, new people, train them, and then they'd get the set of skills necessary, and they would generally give notice and move to other restaurants in our community who were still on a traditional tip economy.

 

[Midwayman]

This just sounds like a restaurant wanting to up prices for another reason. There is no reason that a $10 burger will become a $12 burger just by increasing wage $1. Even on a lower scale a $5 item won't become a $6 item by paying it's employees $1 an hour more. The only way that math makes any sense is if they are doing incredibly little business.

Its almost like they used it as an excuse since they had something to blame and the owners just pocketed the difference. You know, like always.

 

[ShookKnight]

That isn't how no-tip restaurants work. They usually increase their prices. This sounds like they are just forcing you to pay a tip.

Restaurants should just pay a fair wage. But, a fair wage means less profits for themselves... which means they are being greedy.

A McDonalds meal is no different in price than a burger place that isn't fast food. McDonalds identified that the market is willing to pay ~$15 for lunch, so they've jacked up their prices. For $15 I can get a legitimately fresh burger, with fries and a drink. In fact, I can get the same thing for a much lower price - about $10.

But, since McDonalds (and other fast food restaurants) are more common in dense areas, they will increase their prices to match the market's willingness to pay and they know they have a 'captive audience' (food is out ASAP).

A McDonalds means does NOT cost anywhere near $15. It's probably tens of cents... $1 at best. Then, maybe $1 to $2 goes to the salaries (of JUST the line workers).

The cost of smaller restaurants is certainly higher in making their meals, but they follow the same practice; keep as much of the profits as possible intact - living conditions of their workers be damned.

 

[Staples]

I hate tips more than any one in the world but I’d rather a mandatory surcharge than arbitrary tips. In this case, I’d rather these guys just raise the price of food items.

 

[shortylickens]

Supply demand equilibrium.

If the restaurant puts the tip IN the menu prices then they sell less product, or people go elsewhere. Same reason they don't put sales tax on list prices in America but they do it in damn near every other country on earth. They gotta trick your brain into thinking you must be getting a deal.

 

[s0me0nesmind1]

So you are saying that increasing the cost of labour encouraged investment and development of new technology and a concequent improvement in productivity? Isn't that supposed to be a good thing? Or is it better to keep labour cheap so there's no reason to invest in equipment or develop new tech and improve anything?

Yeah

Now just don't cry when unskilled labor isn't employed anymore. It's kinda hilarious to have this "fight for $15" which will eventually turn into "fight for any paycheck"

 

[pmv]

Yeah

Now just don't cry when unskilled labor isn't employed anymore. It's kinda hilarious to have this "fight for $15" which will eventually turn into "fight for any paycheck"

No, no, you automate all the restaurants, then make their former employees equal shareholders. Nobody has to work in the wretched things, the robots do it all, while everyone just sits back and counts their money, like good capitalists. I'm sure that'll work. Until the robots get stroppy.

 

[Scarpozzi]

What if you go into a restaurant....sit down and order nothing but a water (which is free). If your waitress is cute, would you give her $5 for just the tip?

 

[snoopy7548]

What if you go into a restaurant....sit down and order nothing but a water (which is free). If your waitress is cute, would you give her $5 for just the tip?

 

[Scarpozzi]

View attachment 14367

You took my bait..... I'm a master when it comes to baiting.