Great way not to have any waiters. They make a fortune on tips here in NYC. An absolute fortune. Not one waiter here would agree to this deal.
Okay, but if they are making a fortune, then their daily sales must be pretty significant, so the % deal would pay them well also. The information we are missing is whether or not the employer is adding the 20% to the server’s W-2. If so (and I would assume the IRS would require it), then the 20% just became more like 13% or less.
Those waiters in NYC you speak of may bring in $2500 in five hours. That would net them $500.00. That's $100 per hour. Plus any additional tips some extra generous diner may give.
Still think those waiters would quit?
Back in the 70s there was a restaurant in Little Rock that was so popular that waiters could actually “sell” their positions to the highest bidders.
How long would a NYC waiter last who’d “sold” only $500 in 5 hours? Or, how long would a restaurant keep its doors open if its waiters sold only $500 in 5 hours?
Do NYC waiters average more than 20% in tips?
Some Restaurants Do Away With Tips, Raise Menu Prices Instead March 19, 2014
BALDWIN, N.Y. (CBSNewYork) — An argument that waiters and customers will be happier if tips are done away with seems to be gaining steam.
EXCEPTS: "But more and more restaurant patrons said grading the server at the end of the meal, and then doing the math, is taking away from the enjoyment of the experience. “They have no idea what is fair; what’s not fair,” said waiter Adam Panetta. “A lot of people are getting stiffed in the process.”
Owners are listening, and from California to New York, there is now a move afoot to end restaurant tipping. Customers are still paying for service as part of their overall bill. But with 15 to 20 percent higher menu prices, waitstaff is pooling the money instead."
“Everybody gets an even amount,” said waitress Erica Magliocchi. “But it’s bad, just because some people work harder than others.”
Butch Yamali runs multiple restaurants and catering halls on Long Island. He does not support the no-tipping trend, and said he wants the waitstaff rewarded individually for hard work – adding another level of service accountability. Still, he predicted no tipping is the wave of the future for busy owners.
“They make a fortune on tips here in NYC.”
Well, Miss Marme...let’s hope those waiters stay in NYC. Probably be good if you do too! :)
But one question, is it because the clientele are tipping 30 - 50%, or is it because the prices on the menus are ‘outta this world’?