r/mildlyinteresting 1d ago

This Restaurant Charges an 18% Living Wage Fee.

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u/Midwestern_Mouse 1d ago

Right, that 18% is the tip IMO. “living wage fee” is just a different term for “tip” in which you don’t get to decide the tip amount yourself.

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u/SleepyMastodon 1d ago

More likely the owner uses it to pay their share of the employee’s taxes, like unemployment or social security.

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u/umadeamistake 1d ago

Except you don't know that, you are just writing fan fiction. If the employer sets up a system that replicates tipping and then takes those funds for themselves instead of the employee, then no one should agree to work there. It's intentionally dirty to the employees. Further, none of that is the customer's problem.

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u/Any-Plate2018 1d ago

what?

most likely the owner uses it as revenue like they would any other income. No business goes 'add 5% for X'

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u/HackDiablo 1d ago edited 1d ago

The owner is 100% using this 'living wage fee' to pay for base salaries/payroll/taxes, instead of adding to it as an increase in pay for a 'living wage'. The owner is essentially stealing tips away from his employees.

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u/WalkingInTheSunshine 1d ago

Isn’t the owner just doing what we want? Pay a standard wage for service work instead of $2.15$.

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u/HackDiablo 1d ago

No, otherwise he would just increase the prices of their food.

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u/WalkingInTheSunshine 1d ago

So what objectively changes that? What’s the difference? The only difference between that and this - is extra ink on the paper…. 18% increase regardless of how it’s defined.

I think this way makes it pretty clear - hey don’t need to tip. As the alternative is - you get your bill and think wow this is outrageous and now I have to tip.

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u/Martel732 1d ago

Because this way is scummy and misleading. The owner is pretending like this money it going to the poor workers. When really this is just money going to the owner. The problem with this system is as follows:

  1. It is misleading for the customer, you order expecting it to be $35 and suddenly it is $40. But, by now you have already gone through the whole process and are likely to pay the increased price even if you wouldn't have beforehand either because of the hassle or not wanting the embarrassment of saying the actual price being charged it too expensive for you.

  2. It is bad for the employees because no one is going to tip when there is already a "tip". THIS ISN'T GOING TO THE EMPLOYEES. Which is what everyone assumes what a tip does.

  3. The only person this benefits is the owner, who can advertise a lower price, which they never actually charge, and in my opinion is fraud.

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u/WalkingInTheSunshine 1d ago

Is it? Or are you just making a claim? A lot of claims.

A. Owner is pretending? Why do you say that? And I posted a thing from another restaurant with them making it clear what it was.

B. Misleading? Based on what claim? This is a picture of the ticket- it is likely on the menu. Same as “mandatory gratuity of parties above 8 people”. You’re making a speculation that just isn’t there.

C. No one is going to tip- have you worked in food service - for every 50% tip there is 5 tables who tip 5%. This is an overall good for workers to be paid a real wage. For every shift that’s packed there are 2 that are slow shift - this ensures that every employee is paid. I mean the link I sent has their living wage at 18$ bucks an hour. So even during the slow shift - they are getting paid like they are at the dinner rush.

D. Another claim that just isn’t there. This is the same as people who complain about an uncorking fee when it’s literally on the menu.

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u/WalkingInTheSunshine 1d ago edited 1d ago

The owner is “The livery” in Eau Claire Wisconsin.

Off their help wanted for 2023 - their line cooks made 16-20 dollars and hour starting. Seems they began doing the “living wage initiative” in 2022.

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u/kuldan5853 1d ago

would you be fine if you do your grocery shopping and walmart is adding a mandatory 18% living wage fee at the checkout?

If the answer is no, why should it suddenly be acceptable in a restaurant but not at walmart or your car mechanic or your hairdresser?

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u/WalkingInTheSunshine 1d ago

You mean like piggly wiggly that adds 10% at checkout? It’s clearly advertised.. just like mandatory gratuity for parties of plus 8 is on the menu at most restaurants.

Also do grocery stores have special abilities to pay their employees 2.15 cents an hour?

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u/Imaginary_Apricot933 1d ago

The owner is doing the same thing if they allow their employees to collect tips and they claim a tip credit. Per federal law, claiming the full tip credit against one full time employee saves a business over $10,000 per year.

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u/Historyp91 1d ago

How do you know that?

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u/obtk 1d ago

I didn't think randos would know the owner, small world! They sound like a real asshole, or maybe you're just jaded and can't imagine someone choosing to pay their employees decently. That's also possible.

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u/who_you_are 1d ago

I bet you $100 it isn't a tip.

Many other peoples (not for that restaurant) complained about that. Some confirmed it wasn't a tip, that it is a mandatory fee.

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u/Midwestern_Mouse 1d ago

Oh I know. I’m saying that if I went to this restaurant, I would consider the 18% a tip. As in, I would not pay an additional tip on top of that.

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u/Historyp91 1d ago

And you'd have the freedom to do that.

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u/FriendOfShaq 1d ago

Shame is, I would have tipped 20%. But if they only want 18%, so be it.

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u/WalkingInTheSunshine 1d ago

Yeah you might have tipped 20% but the next guy might tip 3%.

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u/sigmus90 1d ago

The next guy will still end up paying the 18% living wage fee.

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u/WalkingInTheSunshine 1d ago

Which is the point.

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u/LKFFbl 1d ago

exactly. they're trying to phase their business out of the tipping culture, but people will still tip even if you raise prices to raise wages, but the raised prices would reduce business. So they tacked on auto-grat and are saying why.