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t-rexcellent t1_ja6i8e2 wrote

I-82 hasn't gone into effect yet (and when it does, it will be very gradual over a few years). When it is in effect, it will be very reassuring to know that even if a restaurant charges a "service fee" that doesn't go to staff, and if patrons choose not to tip because of that, the waitstaff will still earn a living wage like all other workers in the city.

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wandering_engineer t1_ja7cctk wrote

Not sure why you're being downvoted, it's true. And tip culture is really a terrible practice - pay your employees a fair wage, set your prices accordingly, any tip should then be optional (no expected 20+%). That's how it's done in the rest of the world (here in Europe I just round up and rarely tip more than a few dollars), and quite frankly it makes eating out a much more pleasant experience.

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ksixnine t1_ja97kjd wrote

Sorry, I’m not tracking you — most of Europe incorporates a service fee into their meals, and outside of Iceland & Scandinavia *where tips are not expected (5-15% based on where you are) are expected ~ which is pretty much the same as what is happening here in DC currently. leaving extra isn’t necessary but is nicely appreciated; however, if a service fee isn’t included a 5-15% is expected based on where one is ~ Switzerland on the other hand wants 10% on top of their service fee. Currently in DC we are watching all of these models play out to see which works best going forward.

*edited, because brain thinks faster than typing correctly

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wandering_engineer t1_ja9b06b wrote

If there is a service fee, it's rolled into the price. None of this "it isnt the real price" BS. And 5-15% is not expected in most of Europe. I live in Sweden, previously Germany and have visited a large portion of the continent and have never paid more than a few Euros unless it's truly exceptional service. All of my local coworkers do the same, we don't need US tip culture here.

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ksixnine t1_ja9iapt wrote

I did say it was optional in Scandinavia.. and in Germany they bake in and bang you for both a service fee and a VAT, so yeah your leaving a few Euros if you care to is really at your discretion.

My prior comment wasn’t clear: in most EU countries a service fee is included, and leaving extra isn’t necessary; however, if a service fee isn’t included a 5-15% is expected ~ Switzerland on the other hand wants 10% on top of their service fee.

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wandering_engineer t1_ja9lb9e wrote

Yes that was my point - tipping is nice but generally not expected. Compare that to the US where 20% is now apparently the bare minimum and you're considered nothing short of a monster if you don't tip (and many people will roast you for even 15-18%, I've seen it happen).

I am hoping that the new initiative will nudge people towards the European model but am afraid it's too ingrained.

EDIT: and again service fee and VAT is rolled into the price. If that burger is €15 on the menu, you pay €15. None of this deceptive adding a service charge, then adding sales tax, then expecting over 20% more on top of all that. You get banged both ways in the US too, the only difference is Germans are at least transparent about it.

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ksixnine t1_ja9w7t6 wrote

It isn’t that ingrained, and people will adjust; however, the financial compensation isn’t there at present.

Too many people thought of/ wanted to treat this job like any other 9-5 where you get paid X/hr with a chance to make extra — the problem is that they didn’t want to put in their apprentice time and expected to make Four Seasons type of money while working at a Cracker Barrel.

Yeah.. no.

The other problem is that you’ve people that were earning $30-$50+/hr on the old system — very few places can honestly charge enough to actually make that type of financial compensation.

I do understand the frustration of feeling cheated here in the US- it sucks for you and the server. I also understand the fear that restaurants have over profit margins being thin.

Ultimately it’ll be a hybrid system similar to San Francisco (although DC doesn’t have that type of expendable cash..) where QR codes & fast casual fills most of the void, and going out to eat at a regular restaurant becomes a special treat vs a normal experience.

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ksixnine t1_ja94x41 wrote

There’s no incentive for anyone to work in many restaurants vs a grocery store or a 7/11, just none - for that matter, there will be a dearth of talent at lower end establishments because they are now working for a paycheck which is less that what they would’ve earned otherwise.

The lack of using the tip-credit, in conjunction with restaurants paying for healthcare and increasing wages (with or without inflation adding to the issue) is going to clamp down on the mom & pop places, and give way for corporate backed companies to fill the vacancies.

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t-rexcellent t1_ja9bucm wrote

Well, they might enjoy working in a restaurant more than working at a grocery store, even if the pay was identical. But I think many restaurants will still pay better and hire more professional staff than a convenience store or a minimum wage employer. And I think many patrons will still continue to tip. Keep in mind that there's nothing forcing restaurants to charge a service fee -- that's just something they came up with during the pandemic (which was justified, I know) similarly to how airlines realized they could charge you for carry on bags. Lots of restaurants won't do it (and many who do it now may cave under pressure to get rid of their fees).

Of course ultimately the voters have set the law and we'll just have to see what happens!

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ksixnine t1_ja9fol4 wrote

Restaurants have a smaller margin than convenience stores, and are more than happy to send employees home if service is slow - grocers, not so much based on how labor is spread out due to products arriving ~ you can’t be guaranteed 30+ hrs a week in a restaurant, but you can be at Trader Joe’s.

And they do have an incentive: with I•82 on the horizon there isn’t a smart restaurant that doesn’t want to get ahead of the curve now vs five years down the road.

Service fees for DC are mostly pandemic related; however, California/ Wash St/ Nevada.. have been utilizing this practice for quite a while, thus I don’t see too many DC establishments getting rid of it - especially if this is how they are making their ends meet.

Ultimately, yes, DC voters put this into motion, because they didn’t understand the tip-credit.

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