18% Livable Wage Add On: I was reading a local magazine while my car was being inspected this morning, and it had an article about a local restaurant. Everyone there makes at least...

jerryc41 Loc: Catskill Mts of NY

I was reading a local magazine while my car was being inspected this morning, and it had an article about a local restaurant. Everyone there makes at least $20/hour, and they add an 18% "livable wage" item to each customer's bill. That's not considered the tip, which you are expected to add to that. I don't plan to go there.

Longshadow Loc: Audubon, PA, United States

jerryc41 wrote:

I was reading a local magazine while my car was being inspected this morning, and it had an article about a local restaurant. Everyone there makes at least $20/hour, and they add an 18% "livable wage" item to each customer's bill. That's not considered the tip, which you are expected to add to that. I don't plan to go there.

Interesting that the more one eats, the more they get paid.
Why don't they simply raise the wage instead of a mandatory bonus?

jerryc41 Loc: Catskill Mts of NY

Longshadow wrote:

Interesting that the more one eats, the more they get paid.
Why don't they simply raise the wage instead of a mandatory bonus?

$20 is unusually high for waiters. With pay like that, I can't understand why they add the 18%. Every employer in the country could add that 18%. That would be bad news. I wonder how much of that 18% actually goes to the workers.

Longshadow Loc: Audubon, PA, United States

jerryc41 wrote:

$20 is unusually high for waiters. With pay like that, I can't understand why they add the 18%. Every employer in the country could add that 18%. That would be bad news. I wonder how much of that 18% actually goes to the workers.

Probably does go to the servers, maybe in a common coffer to split?.

jerryc41 Loc: Catskill Mts of NY

Longshadow wrote:

Probably does go to the servers, maybe in a common coffer to split?.

The servers would have to trust the owner to give them that 18%.

March 9, 2020 was the last time I ate in a restaurant, aside from take-out pizza and Chinese.

Longshadow Loc: Audubon, PA, United States

jerryc41 wrote:

The servers would have to trust the owner to give them that 18%.

Yes they would.
If that is what the 18% is for, if they weren't giving it to the servers, that would be bad news for the owner if the news got out.

hippi Loc: Sedalia MO

that place just lost my business along with any other place that charges 18% + and says it is not a tip I am sick and tired of subsidizing people's wages plus all these companies that are raising the price of things, getting really sick of these greedy people (example a great BBQ joint brisket sandwich was 10.75 made w 3/4 pound now it is 17.50)

Longshadow Loc: Audubon, PA, United States

hippi wrote:

that place just lost my business along with any other place that charges 18% + and says it is not a tip I am sick and tired of subsidizing people's wages plus all these companies that are raising the price of things, getting really sick of these greedy people (example a great BBQ joint brisket sandwich was 10.75 made w 3/4 pound now it is 17.50)

Depends on the overhead (operating expenses).
Where I live a pound of "store brand" sliced deli roast beef is about $14.
I've NO idea what their profit margin may be.

But I agree, I would not go to that restaurant either.

If workers are going to be paid well, prices will go up.
Just wait for a $7.50 quickie burger being the norm....

JimBart Loc: Western Michigan

Jerry, go figure…. A 20.00 meal X .18 livable wage is 23.60 x .20 the expected tip is then 28.32 x .06 state tax equals a 30.02 meal for 1.
One reason my wife and I have started to minimize eating out. Too many places expect it. They’re making more money now than I did at the time of retirement 12 years ago.

bobmcculloch Loc: NYC, NY

jerryc41 wrote:

I was reading a local magazine while my car was being inspected this morning, and it had an article about a local restaurant. Everyone there makes at least $20/hour, and they add an 18% "livable wage" item to each customer's bill. That's not considered the tip, which you are expected to add to that. I don't plan to go there.

Which restaurant do I want to avoid? Asking for me!

Country Boy Loc: Beckley, WV

I have been to a number of places that charge the 18% but it is normally considered a tip. I don't object but I like to make my own determination as to the amount of tip the servers deserve. If they get a set amount, there is no reason to give outstanding service!

StanMac Loc: Tennessee

hippi wrote:

that place just lost my business along with any other place that charges 18% + and says it is not a tip I am sick and tired of subsidizing people's wages plus all these companies that are raising the price of things, getting really sick of these greedy people (example a great BBQ joint brisket sandwich was 10.75 made w 3/4 pound now it is 17.50)

Nobody needs to eat 3/4 pound sandwich of brisket! Ask for half a sandwich.

Stan

elee950021 Loc: New York, NY

Longshadow wrote:

...If workers are going to be paid well, prices will go up.
Just wait for a $7.50 quickie burger being the norm...

I just had a "plain" turkey burger with a slice of pickle and small container (condiment cup size) of slaw for $9.75 at a diner!

The Bareburger Restaurant chain here in Manhattan charges $13 and up for their "plain" burgers and we're talking vegetarian. A local steak house does offer a "Lunch Special:" $19.95 Steakburger. Don't know about a pickle and slaw!

Be well! Ed

Longshadow Loc: Audubon, PA, United States

elee950021 wrote:

I just had a "plain" turkey burger with a slice of pickle and small container (condiment cup size) of slaw for $9.75 at a diner!

The Bareburger Restaurant chain here in Manhattan charges $13 and up for their "plain" burgers and we're talking vegetarian. A local steak house does offer a "Lunch Special:" $19.95 Steakburger. Don't know about a pickle and slaw!

Be well! Ed

fetzler Loc: North West PA

jerryc41 wrote:

I was reading a local magazine while my car was being inspected this morning, and it had an article about a local restaurant. Everyone there makes at least $20/hour, and they add an 18% "livable wage" item to each customer's bill. That's not considered the tip, which you are expected to add to that. I don't plan to go there.

In the 1970s my wife worked as a waitress in a diner. Her wage there was $0.50/hr which even then was nothing. On the other hand, she made $50-$75 /day in tips. In those days our rent was $175/mo and our electric bill was about $35/mo. We lived in Miami.

Servers in restaurants can make very good money.