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AgentGrimstone ,

If this was my post, I’d be circling the whole receipt.

Snapz ,

Need a tip at the bottom - it’s a LOT of hard work to process those mandatory service charges!

Rootiest ,
@Rootiest@lemmy.world avatar

Why have a service fee at all then?

Just raise the prices and use the extra income to pay the employees better if that’s really your intention.

People won’t get upset about the tip on top of it if you don’t already have a “service charge” sectioned off in the receipt.

Aceticon ,

It’s so that they can deceitfully advertise prices which are lower than the real price.

I believe this is totally illegal in the EU (because they’re obligated to list prices and all charges, fully, upfront and that even includes taxes) but I guess that in the US there are States were it’s either not illegal or has never been challenge in court.

SpaceCadet ,
@SpaceCadet@feddit.nl avatar

I had a service charge like that added in Rome once. It is most likely illegal, but Rome is a pretty lawless place as it is where everybody tries to scam you all the time, so I didn’t bother spending time arguing it and getting all worked up about a couple of euros during my holiday, just avoided the place thereafter. I know that’s probably what they’re counting on …

Karyoplasma ,

Oh yes, the “coperto” or cover charge. Restaurants that are worth going to will tell you upfront about whether they charge you that and how much. Tourist traps will just put a small sign somewhere on the premises that informs you of their ass-pull fee.

I went to a small café in Venice and had a cup of coffee for 4€. They charged me a fixed 14€ coperto.

Aceticon ,

So that shit is actually legal in Italy?

In that case I was totaly wrong on my belief on it not being legal in the EU.

SkippingRelax ,

Coperto is perfectly legal and the norm everywhere. It would be clearly mentioned on the menu, typically at the bottom of every page and it is around a couple bucks per person. It’s for the bread and bread sticks you get on the table, water and electricity to wash cutlery and plates you use, and to pay for serving stuff and rent. Why not included in the price of that pizza you might ask? Because I might order that pizza to take away and not use all of the above.

Some touristy places take advantage of it, doesn’t make sense for a coffee in Venice (though I’m not surprised). A couple of bucks that op was charged at a restaurant in Rome on the other hand, 100% expected everywhere in Italy.

Source, am from there.

SpaceCadet ,
@SpaceCadet@feddit.nl avatar

I just read about coperto here, and I don’t think that was it. I’m pretty sure it said “Servizio” on the bill, and it was a percentage on top of the price of what we ordered.

Aceticon ,

Oh yeah, I live in Portugal and here too foreign tourists are natural targets for scammy shit. It’s not too much but there are certainly bad actors who will take advantage of people who don’t speak the local language and don’t know their rights.

However I suspect it’s a lot worse when some kinds of scams are actually legal.

Nahdahar ,

In my country (in the EU) usually if a service charge is added on top of the order, it’s because that particular place doesn’t accept tips.

SpaceCadet ,
@SpaceCadet@feddit.nl avatar

That would be illegal in the EU country where I live (Belgium). Here the rule is that the advertised price must always include any mandatory charges, like VAT and service charges, so that advertised price = price the consumer would have to pay.

Source: economie.fgov.be/nl/themas/…/prijsaanduiding

Translation:

Price indication

Companies offering goods or services must indicate the price in writing in a legible, visible and unambiguous manner.

The price is the total price to be paid by the consumer, including VAT and all other taxes or services that the consumer is obliged to pay extra. These prices are stated at least in euros.

UnderpantsWeevil ,
@UnderpantsWeevil@lemmy.world avatar

That would be illegal in the EU country where I live (Belgium).

Further evidence that America isn’t a legal country.

roofuskit ,

I the s legal most places in the US, some big cities like New York City have outlawed it.

Rivalarrival , (edited )

Look at how the tips were calculated. They were based on a bill of $95.65, the price of the meal before the service fee.

This service fee allowed them to increase the price of the meal by 18% without increasing the calculated tip by 18%.

They are stiffing their employees.

Edit: A $100 check would have an expected, 15% tip of $15. A $118 check would have an expected 15% tip of $17.70. What they are doing lets them calculate a 15%, $15 tip on a $118 bill. They are “stealing” $2.70 worth of tips on every $100 worth of sales.

WhipTheLlama ,

Alternative option: the service fee is the tip because there’s no way I’m paying more than what’s on that bill.

Rivalarrival ,

That just fucks over the waitstaff without harming the business at all.

Best option is to walk out as soon as you see notice of a service fee. It should be printed on the menu or a sign posted on entry.

UnderpantsWeevil ,
@UnderpantsWeevil@lemmy.world avatar

Just raise the prices

They’re already selling lemonade for $6. The sky is clearly the limit.

Emerald ,

Image Transcription: Text and Image


A receipt from a restaurant. A white circle was marked up on the photo and inside reads the text

18% Service Charge (18.00%)

$17.22


The full receipt text shown is as follows.

Ordered: 11/11/23 6:31 PM

GARLIC BREAD $4.90

2 KIDS SHELLS $32.50

FUSILLI $20.75

CANNOLI $11.00

LEMONADE $6.00

DRIP COFFEE $4.50

2 DRAFT BEER $12.00

CHOCOLATE CHIP COOKIE $4.00

18% Service Charge (18.00%)

$17.22


Subtotal $112.87

Tax $10.73

Total $123.60


Cash -$123.60

Amount Due $0.00


Suggested Tip:

8%: (Tip $7.65 Total $131.25)

10%: (Tip $9.56 Total $133.16)

12%: (Tip $11.48 Total $135.08)

15%: (Tip $14.35 Total $137.95)

Tip percentages are based on the check price before discounts and taxes.

The service charge is not a tip or gratuity, and is an added fee controlled by the restaurant that helps facilitate a higher living base wage for all of our employees. Please scan the QR code at the top of the receipt for additional information, or speak with a manager.


RememberTheApollo_ ,

Really. What’s the new base wage? And if there’s better wage, the tip should be commensurately reduced.

WhipTheLlama ,

[The service charge is] an added fee controlled by the restaurant that helps facilitate a higher living base wage

Great! I don’t need to tip because they already pay their employees a fair wage.

irotsoma ,
@irotsoma@lemmy.world avatar

Basically, they just raised their prices by 18% and blamed it on the greedy, useless employees. I don’t know why businesses bother selflessly “creating jobs” if they are so much trouble. Shouldn’t those be the first things to cut to make their business more efficient under capitalism? Stop doing charity work and run the business yourself.

ChaoticNeutralCzech ,

Probably better than expecting customers to tip voluntarily

Oh wait, they do that too

III ,

I hope their customers are exclusively people who support the the below minimum wage for servers law.

Rivalarrival ,

Basically, they just raised their prices by 18% and blamed it on the greedy, useless employees.

No, it’s worse than that.

Look at how the tips are calculated. They use the base bill of 95.60, not the bill after the service charge has been applied.

If they rolled an 18% increase into their prices, the calculated tip would also rise 18%. But it didn’t.

So in addition to effectively raising their prices and blaming their employees for it, they are also stiffing their employees by low-balling their tip calculations.

irotsoma ,
@irotsoma@lemmy.world avatar

Actually, what I’m saying was that there shouldn’t be a need for a tip at all. That 18% service charge is for services rendered outside of the production of the product, meaning the server, cashier, etc. In most countries that’s rolled into the cost of the product, not a separate charge. In the US, that’s paid for through tips instead. What they’re doing is trying to double dip. They want to keep the money that normally would go to paying the service staff a wage without raising advertised prices and also have a separate tip to actually pay them.

This is a classic bait and switch where advertised price is not what you actually pay. Doesn’t matter if they put a little sign to cover their legal obligations, it’s still disingenuous to advertise one price and charge another. Tipping and taxes are common knowledge in the US as being added on after, but a service charge in addition to tipping is not and most people will assume that the service charge is a tip and won’t also tip whereas it doesn’t go directly to the service staff like a tip does. So likely in this place, the service staff just gets their $2.13/hr or whatever the tipped minimum is there, and a few dollars here and there in actual tips but doesn’t get any of that 18% unless tips don’t cover the required hourly $5.12 tip credit.

So they need to choose. Raise your prices for more profit and keep tipping, raise your prices to pay your service staff and do away with tipping, or keep your prices lower and risk tipping not covering the minimum wage tip credit.

billwashere ,

I would simply not go to that restaurant anymore and very plainly let them know why. This is greed and I will not reward it.

Much like when I place a to go order and go pick up the order and the POS (point of sale not piece of shit if you’re wondering) system pops up that tip screen. You didn’t do anything worthy of a tip so I will not be tipping you. Now if for example when I get there they apply some discount I wasn’t aware of that makes my bill cheaper, I’ll tip for that. Throw in some extra cheese sauce, tip. Anything above and beyond, tip. Just ring me up and hand me my food, yeah no tip.

Imgonnatrythis ,

You realize that giving you 5% off so you will tip 15% is still greed though right? The greed is always there, it’s just your perception of how it’s delivered. We expect a little foreplay with our greed.

billwashere ,

I didn’t say I was giving them 15%. I give 18% for full service. But a buck or two for something like this.

DrMango ,

It’s this (the service charge) or they raise prices across the menu. Some people prefer this, some people prefer the added cost baked in.

Personally I think the service charge is a little deceptive because you are hit with an unexpected expense at the end of your meal. Even if they’re very up front about the charge most people won’t be automatically calculating the 18% extra on whatever they’re spending, they’re just going to look at the price on the menu.

Rootiest ,
@Rootiest@lemmy.world avatar

Some people prefer this

Citation needed.

HeyThisIsntTheYMCA ,
@HeyThisIsntTheYMCA@lemmy.world avatar

I think those people own restaurants

Aceticon ,

They have raise prices across the menu, by 18% to be more specific.

Segregating the price increase as “service fee” is only so that they can deceitfully advertise their prices a lower than they really are, a form of Consumer Fraud (I believe this one is a form of Bait & Switch)

Rivalarrival ,

Not quite. A $100 meal would have a routine 15%, $15 tip. Increase the price 18%, and a $118 meal would have an expected 15%, $17.70 tip.

Look at the tip calculations on this receipt: they are based on the price of the meal before the service fee. If this restaurant sold a $118 meal, it’s expected 15% tip would be $15, not $17.70.

They are stealing $2.70 from staff on every $100 check.

Rivalarrival ,

Look at the calculated tips. They are based on $95.60, the price of the meal before the 18% service charge.

If they raise their prices by 18%, they would have to raise their tip calculation by 18%.

They are stiffing their employees.

Aarrodri ,

Ok where is this so we can avoid it?

twisted28 ,

This has been happening in Florida for a few years now. Restaurant owners went to court so they could keep the service charge. In the beginning I thought it was just a mandatory tip to stop people from stiffing the waiter. Nope they actually expect you to pay 18% plus another 20% for the waiter. Ridiculous. We don’t go out to eat much anymore on principle.

DiatomeceousGirth ,

It’s cuz they’re too chicken shit to actually raise the menu price. So they can blame the government or the workers instead of taking responsibility for paying their staff shit wages forever

twisted28 ,

Yes, Greed., as always. I suspect many industries will completely or partially close in the coming years as the population is just too broke.

vivadanang ,

“no one wants to work anymore” says restaurant owner who won’t pay a living wage even after jacking up service fees.

AtariDump ,
Rentlar ,

Yeah if I hear a word about my decision to include the service fees in the tip, that’s the last time the restaurant will see my business.

Illegal_Prime ,

I actually support phasing tips out for service fees, less dodgy and less influenced by cognitive biases from customers toward certain genders or ethnicities of staff.

Conradfart ,

Yeah, but phasing out should probably be some form of cross tapering, not a decently sized service charge and the same size “suggested tip” on top.

orclev ,

There’s no need for a service fee, just increase the prices of everything by 18% or whatever. It’s more honest that way instead of listing one price and then springing a hidden fee on people at checkout. Part of why this particular example is so dodgy is they seem to be fishing for a service fee and a tip, which just seems like double dipping on hidden fees.

Illegal_Prime ,

It’s important to require disclosure of the service fee. In my experience usually listed at the bottom of the menu. I know at least in some instances there are crowdsourced master lists of restaurants with hidden fees, and enforcement of disclosure requirements seems to have stepped up.

quinkin ,

You could go hog wild and include tax in the prices too. Then the price of an item could be the price of an item instead of the start of a maths quiz.

Kirca ,

Wild to me that theres a whole country out there that has so much influence over my life (an entire ocean away) and they don’t know how much their meal will be before the cheque comes. Incredible.

xX_fnord_Xx ,

But we need every price to end in .99! /S

SocialMediaRefugee ,

Roll it into the prices then. Any mandatory fee is a cost of doing business, don’t make it look like your food costs less than it really does. Only taxes should be separate.

SlopppyEngineer ,

It’s a USA thing. Other places often have rules that say the price advertised (on menu, website, in store) is the price the customer pays, all fees and taxes included.

Zagorath ,
@Zagorath@aussie.zone avatar

Yeah in Australia restaurants are allowed to have a service fee only if it’s applied on select days (e.g. weekends and public holidays, but not every single day of the week) and they clearly display the conditions of the service fee “at least as prominently as the most prominent price on the menu”. Otherwise, they have to roll in any fees into the main advertised price.

Zeroxxx ,
@Zeroxxx@lemmy.my.id avatar

It does seem tipping is American culture? Never heard this accross SEA and China. Who in the world would put suggested tip in the bill?

RogueBanana ,

It very much is and suggested tips seems to be common from what i heard

figaro ,

It is so engrained into society that suggested tip amounts on the receipt are welcomed, because then you don’t need to do the math

killeronthecorner ,
@killeronthecorner@lemmy.world avatar

The UK has been infected with service charges but it’s extremely common to either a) have it removed from the bill, as there is no obligation to pay it, or b) forego the tip because of it.

Karyoplasma ,

In 2019, I went to Shanghai to attend my cousin’s wedding and one thing he told me before going is that I should not tip under any circumstance. It’s regarded as an insult to the service provider because you insinuate that they are unable to pay their employees well enough.

SocialMediaRefugee ,

The Ticketmaster economy

Blackmist ,

Because reprinting the menu is too expensive. 😢

III ,

Printing a menu means they can’t constantly alter the price. Did I say alter? I should have said raise.

ZooGuru ,
@ZooGuru@lemmy.world avatar

I’ve seen this at restaurants serving more than a given number of people. Did you attend a dinner with a large group?

Stumblinbear ,
@Stumblinbear@pawb.social avatar

I’ve been seeing it more regardless of group size. I went to a restauraunt alone and they had the audacity to charge a service fee and ask for a fucking tip

I wouldve tipped more than the service charge! So I gave nothing instead

ZooGuru ,
@ZooGuru@lemmy.world avatar

That is super frustrating. Especially if the “service charge” isn’t really going to pay the staff a living wage. I’d be curious to hear from someone that works in a restaurant that does this whether or not they are actually being paid better after it has been implemented or if it is just cash grab by the individual restaurant owner/operator. Any takers?

RustedSwitch ,
@RustedSwitch@lemmy.world avatar

$16.25 for a kids size pasta dish?

PetDinosaurs ,
ZombiFrancis ,

I feel like I have seen multiple receipts from this same place, likely posted by the same person, because I remember noting $16 Kids Shells on some other thread months ago.

Seems odd. They should really stop going.

AlternateMrPapaya ,

The $5.00 glass of lemonade is ridiculous. Water and a small scoop of powdered flavoring/sweetener costs them about a quarter.

Imgonnatrythis ,

What kind of time warp is this though where tipping recs start at 8%. I never see that anymore.

KredeSeraf ,

That 8% would actually be 26% given there is an auto 18% added already.

Imgonnatrythis ,

Hard to say. A lot of places don’t pass these service charges to the servers. They don’t want you doing that kind of math.

digger ,
@digger@lemmy.ca avatar

That assumes the 18% goes directly to your server.

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