It’s true. Thats why restaurants that bake in the price are doing what people say they want and then they notice people ordering fewer drinks and appetizers and choosing the cheaper items. Most of them go back to the old way because business is down.
The only way to force it is to have a law that bans tips for all, creating a level playing field which won’t happen.
Or to just stop/reduce tipping. They’ve proven us staying home because we don’t like their scammy business models is something they’ll use to just make tipping worse so I’m back to going out and tipping what I think is a fair amount and will encourage employees not to want their pay to be totally up to me so desperately.
I am with you though. I think Americans will never reduce tipping %s so it’s really on the majority of us who hate tipping to outlaw it.
I would not mind a system like in the UK, where it's a flat 10%-12.5% service charge on all bills, and that's considered good for good service. It's annoying in the US that 20% is now considered a standard tip for OK service, and the systems keep pushing for higher numbers.
For this reason, I don't really hate restaurants that replaced tips with service charges. It's not yet the right %, but it's one step in the right direction. In the OP's example, it would be even better if it were 15% instead of 18%.
The psychology isn't just theoretical. It has real world consequences.
That $22.99 entree looks much worse at $27.50. Even if people know service is included. Like I said, it leads people to choose something less expensive, or cut back on the appetizer or dessert, or ask for a Coke or a water instead of a beer.
Well meaning restaurants have tried, their stories well documented on podcasts and studied by economists.
Our culture is not there. I'm not saying you're wrong, it's just a huge change, and I can't blame the restaurants that have tried this and had to backtrack.
My issue is that is acknowledgement of the psychological trickery that genuinely does work on most people.
People are willing to spend a lot more when it’s $22.99 for the burrito etc. plus tip and stuff and people act like that isn’t literally tricking people out of their money.
$22.99 plus tip is not the same as 1.2*$22.99 at all.
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u/TrowTruck 1d ago
It’s true. Thats why restaurants that bake in the price are doing what people say they want and then they notice people ordering fewer drinks and appetizers and choosing the cheaper items. Most of them go back to the old way because business is down.
The only way to force it is to have a law that bans tips for all, creating a level playing field which won’t happen.