Went to a restaurant in LA today and when I got the check I noticed that it was a bit higher than it should be. Then I noticed this 18% service charge. So... We, as customers, need to help pay for their servers instead of the owners paying their servers a living wage. And on top of that they have suggested tip. I called bs on this. I will bet you that the servers do not see a dime of this 18% service charge. [deleted a word so it wasn't a grammatical horror to read]
[face palm] that is an amazingly important point I hadn't thought of / not heard discussed before, about the service fee vs actual increase hourly wages. I mean it's totally obvious now that you said it.
And I really do agree with owners taking the risk if they want the reward. I will only say that there IS a place for balance, and reward for performance. I think the current tip system is tilted WAY WAY WAY too much to the server's risk and needs to go away. I also think restaurant margins are actually too thin to go 100% wage based and put all that risk on the owners. I fear the bankruptcy churn in restaurants would be too much.
And yet it seems to work out in Europe so I'm probably wrong.
