16th Apr 2008
Changing the Tipping Paradigm
A restaurant review in Philadelphia has spurred a debate about the ethics of tipping. Or perhaps it’s about the ethics of a restaurant paying above what it has to in order to confiscate tips from its employees. It claims to be using the tips for remodeling. And, it’s important to note that customers don’t know that the tip doesn’t go to the server.
Oh! Hubby and I almost ate there when we visited Philadelphia. How horrible! Capital improvements belong in the meal price. The customers and servers are the losers. The winner? The next restaurant to occupy the space.
Wow. That is totally deceptive to the patrons. It’s fine if the servers agree to that type of payment, but the restaurant is relying on the patrons’ understanding of tipping practice to finance a renovation - on a 3 month old restaurant? Why didn’t they get enough money in their start up loan? If they’re counting on those tips to finance a project of that magnitude, it must be a lot of dough, and they are already in trouble.
I think you’re right about the winner, Scott. I’m actually surprised they can keep staff.
It reminds me of the sludge-on-the-lawn in that if full information is disclosed to and understood by the consumer, it changes the dynamic considerably.
I agree, h sofia. The only problem I have with this is that the restaurant is changing the restaurant paradigm without letting the customer in on the change. As long as the server agrees to the deal in the first place, I don’t think they have any right to complain. It’s the customer who is being bamboozled in all this.
And who the hell starts up a restaurant without the money to complete it before opening? It’s the same mentality that has people buying houses they can’t afford.