Anyone familiar with this and know if it goes completely to the server or is split with the restaurant? Went out with co-workers, and it was 20% since there was more than 8 of us. I don't eat out a bunch, and haven't seen one so high in the past. At the bottom of the reciept it had a "suggested additional tip" of 2, 3, 5, 10, 15%. Service wasn't bad, but not good. I gave a small tip, but also felt kinda bad in retrospect in case the restaurant took a portion of it.
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Automatic service fee at restaurants
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Last: 8 mo ago by HTownAg98
Most restaurants will automatically add the tip for large parties. The suggested tip is automatically added on all receipts.
Per Federal statutes and State law it is illegal for an employer to take a cut of tips from employees. Tips belong to the employee, not the employer. They can require all tipped employees to turn their tips into a "tip pool" from which all eligible workers get an equal share. But the employer still can't keep any of the pool money.bigtruckguy3500 said:
Anyone familiar with this and know if it goes completely to the server or is split with the restaurant? Went out with co-workers, and it was 20% since there was more than 8 of us. I don't eat out a bunch, and haven't seen one so high in the past. At the bottom of the reciept it had a "suggested additional tip" of 2, 3, 5, 10, 15%. Service wasn't bad, but not good. I gave a small tip, but also felt kinda bad in retrospect in case the restaurant took a portion of it.
On the other hand, restaurants can impose a "mandatory service charge" for large groups, private parties or catered events. In that case, the service charge goes to the employer and none goes to the server(s). So in this case a tip in addition would be appropriate.
In your scenario, many restaurants will impose a minimum tip of 18% or more for large groups. The main reason for this is to prevent the server or servers from getting hosed with little or no tip after busting their ass to provide good service to the guests. If the charge on the ticket is listed as a tip or gratuity, it goes to the server or tip pool. If it's listed as a "service charge" that goes to the restaurant and you would want to add an appropriate tip for the service provided.
My daughters and one son-in-law all worked at Pappas Seafood House in their High School and college years. They liked working there but absolutely detested having to contribute to the tip pool once they became servers. They were very good to great at waiting tables and received excellent tips most of the time. End of shift they had to turn in the $200 (for example) in tips earned through their hard work to be shared in some cases with another server that pulled in less than half that amount because they were kind of lousy at waiting tables. So their $200 became $150 or maybe less in that system by the time they got their "share".
I am not the Six Million Dollar Man, but I might need that surgery. "We have the technology, we can rebuild him!"
I've seen somewhat of a hybrid lately. There will be a service fee, but it's usually explained on the menu what it's for. Most oftentimes it's to pay for higher than tip wages, medical insurance, 401(k), etc. Depending on what it's for, I'll adjust my gratuity appropriately. As long as the restaurant is transparent on where the service charge is going, that's fine with me.
they should do this for Texas A&M system departments that order food delivered. Daughter had stories of delivering catered food and folks not tipping or tipping $5 for a $1000 orders. Had to find parking, push dolly's filled with food then got stiffed by an employee flippantly ignoring the tip. Her employer should have mandated the same auto-tip requirement. Academia types were the absolute worst with department monies.Col. Steve Austin said:Per Federal statutes and State law it is illegal for an employer to take a cut of tips from employees. Tips belong to the employee, not the employer. They can require all tipped employees to turn their tips into a "tip pool" from which all eligible workers get an equal share. But the employer still can't keep any of the pool money.bigtruckguy3500 said:
Anyone familiar with this and know if it goes completely to the server or is split with the restaurant? Went out with co-workers, and it was 20% since there was more than 8 of us. I don't eat out a bunch, and haven't seen one so high in the past. At the bottom of the reciept it had a "suggested additional tip" of 2, 3, 5, 10, 15%. Service wasn't bad, but not good. I gave a small tip, but also felt kinda bad in retrospect in case the restaurant took a portion of it.
On the other hand, restaurants can impose a "mandatory service charge" for large groups, private parties or catered events. In that case, the service charge goes to the employer and none goes to the server(s). So in this case a tip in addition would be appropriate.
In your scenario, many restaurants will impose a minimum tip of 18% or more for large groups. The main reason for this is to prevent the server or servers from getting hosed with little or no tip after busting their ass to provide good service to the guests. If the charge on the ticket is listed as a tip or gratuity, it goes to the server or tip pool. If it's listed as a "service charge" that goes to the restaurant and you would want to add an appropriate tip for the service provided.
My daughters and one son-in-law all worked at Pappas Seafood House in their High School and college years. They liked working there but absolutely detested having to contribute to the tip pool once they became servers. They were very good to great at waiting tables and received excellent tips most of the time. End of shift they had to turn in the $200 (for example) in tips earned through their hard work to be shared in some cases with another server that pulled in less than half that amount because they were kind of lousy at waiting tables. So their $200 became $150 or maybe less in that system by the time they got their "share".
Interesting. I hope the full 20% didn't go to the restaurant. Then I'd feel bad for my tip. But man, even if I only tipped 10%, then that makes the total a 30% extra fee over menu price.
Yeah, I think a "service charge" for having a group of 8 or more is B.S. I can't see how it costs the restaurant more to serve 8 vs serving 4.bigtruckguy3500 said:
Interesting. I hope the full 20% didn't go to the restaurant. Then I'd feel bad for my tip. But man, even if I only tipped 10%, then that makes the total a 30% extra fee over menu price.
I am not the Six Million Dollar Man, but I might need that surgery. "We have the technology, we can rebuild him!"
I agree. There should be some protection for those providing a service and not rely completely on the good graces of their customers to do the right thing.
I am not the Six Million Dollar Man, but I might need that surgery. "We have the technology, we can rebuild him!"
it protects the server from spending a lot of time waiting on a big group, likely with no other tables, and then getting screwed by some jackass who thinks $10 is good enough because that's what he got when he waited tables in 1975.Col. Steve Austin said:Yeah, I think a "service charge" for having a group of 8 or more is B.S. I can't see how it costs the restaurant more to serve 8 vs serving 4.bigtruckguy3500 said:
Interesting. I hope the full 20% didn't go to the restaurant. Then I'd feel bad for my tip. But man, even if I only tipped 10%, then that makes the total a 30% extra fee over menu price.
Col. Steve Austin said:
My daughters and one son-in-law all worked at Pappas Seafood House in their High School and college years. They liked working there but absolutely detested having to contribute to the tip pool once they became servers. They were very good to great at waiting tables and received excellent tips most of the time. End of shift they had to turn in the $200 (for example) in tips earned through their hard work to be shared in some cases with another server that pulled in less than half that amount because they were kind of lousy at waiting tables. So their $200 became $150 or maybe less in that system by the time they got their "share".
So your daughters never had a bad day, never had bad tippers, never had tables that lingered and couldn't turn it over? For them to lose 25% or more of their tips means half the waiters are so bad they are making 10% tips at Papas steakhouse and your daughters never benefited from the pool.
I never said any of that. Yes they had bad tippers, tables that lingered, etc. I heard all about it back in the day. That's a different issue from when you know some of your fellow servers are consistently subpar in their performance but you still have to share your hard earned tips with them. From talking to my daughters and son-in-law recently about this subject, they never had to rely on the tip pool to make up for getting shorted through no fault of their own. One of my brothers spent some time waiting tables at Pappasitos a long time ago and he says the same.FIDO*98* said:Col. Steve Austin said:
My daughters and one son-in-law all worked at Pappas Seafood House in their High School and college years. They liked working there but absolutely detested having to contribute to the tip pool once they became servers. They were very good to great at waiting tables and received excellent tips most of the time. End of shift they had to turn in the $200 (for example) in tips earned through their hard work to be shared in some cases with another server that pulled in less than half that amount because they were kind of lousy at waiting tables. So their $200 became $150 or maybe less in that system by the time they got their "share".
So your daughters never had a bad day, never had bad tippers, never had tables that lingered and couldn't turn it over? For them to lose 25% or more of their tips means half the waiters are so bad they are making 10% tips at Papas steakhouse and your daughters never benefited from the pool.
And none of them worked at Pappas Steakhouse. I know reading is hard but I specifically mentioned Pappas Seafood House. The Steakhouse has a different level of clientele, I don't know for certain but I imagine it's a different situation in regards to tipping.
I am not the Six Million Dollar Man, but I might need that surgery. "We have the technology, we can rebuild him!"
A "service charge" goes to the restaurant, not to the server. There's nothing to protect the server from getting hosed by that jackass and other jackasses unless there's a mandatory gratuity (tip) for big groups.bularry said:it protects the server from spending a lot of time waiting on a big group, likely with no other tables, and then getting screwed by some jackass who thinks $10 is good enough because that's what he got when he waited tables in 1975.Col. Steve Austin said:Yeah, I think a "service charge" for having a group of 8 or more is B.S. I can't see how it costs the restaurant more to serve 8 vs serving 4.bigtruckguy3500 said:
Interesting. I hope the full 20% didn't go to the restaurant. Then I'd feel bad for my tip. But man, even if I only tipped 10%, then that makes the total a 30% extra fee over menu price.
I am not the Six Million Dollar Man, but I might need that surgery. "We have the technology, we can rebuild him!"
I will not go to a restaurant that charges a "Service Fee" - especially if they don't tell you about it beforehand. Add it to menu prices.
Was this a service fee or was it just a tip? Pretty much every restaurant in the world charges a mandatory tip when you have a big group.
I'm pretty sure it said "service", but I'll see if I still have the receipt on the counter at home.
Maybe I'm a dick and wrong but if a restaurant adds a service fee of 20% because I have a group of 8, that's the tip in my opinion. I'm not tipping an additional 15%.
. That was my thought as well, but I figured most/all of the fee would go to the waitress. I hope it did, but my additional tip was trivial in comparison. But yeah, that's a lot to pay over menu price.htxag09 said:
Maybe I'm a dick and wrong but if a restaurant adds a service fee of 20% because I have a group of 8, that's the tip in my opinion. I'm not tipping an additional 15%.
I hear ya, but the only mandatory ones I've seen for a big group go to the server. Where did you see just a random up charge for a large group? I would find that unusualCol. Steve Austin said:A "service charge" goes to the restaurant, not to the server. There's nothing to protect the server from getting hosed by that jackass and other jackasses unless there's a mandatory gratuity (tip) for big groups.bularry said:it protects the server from spending a lot of time waiting on a big group, likely with no other tables, and then getting screwed by some jackass who thinks $10 is good enough because that's what he got when he waited tables in 1975.Col. Steve Austin said:Yeah, I think a "service charge" for having a group of 8 or more is B.S. I can't see how it costs the restaurant more to serve 8 vs serving 4.bigtruckguy3500 said:
Interesting. I hope the full 20% didn't go to the restaurant. Then I'd feel bad for my tip. But man, even if I only tipped 10%, then that makes the total a 30% extra fee over menu price.
Stayed at The Grand in Alabama couple years ago. Every restaurant around charged a separe fee from gratuities. Restaurant keeps it in that case. I argued it the first night only to realize they all did it.
Well, I haven't eaten in a restaurant as part of a large group other than some local Tex Mex places (no service charge, no minimum gratuity) in a long time. So I haven't seen it applied in recent memory.bularry said:I hear ya, but the only mandatory ones I've seen for a big group go to the server. Where did you see just a random up charge for a large group? I would find that unusualCol. Steve Austin said:A "service charge" goes to the restaurant, not to the server. There's nothing to protect the server from getting hosed by that jackass and other jackasses unless there's a mandatory gratuity (tip) for big groups.bularry said:it protects the server from spending a lot of time waiting on a big group, likely with no other tables, and then getting screwed by some jackass who thinks $10 is good enough because that's what he got when he waited tables in 1975.Col. Steve Austin said:Yeah, I think a "service charge" for having a group of 8 or more is B.S. I can't see how it costs the restaurant more to serve 8 vs serving 4.bigtruckguy3500 said:
Interesting. I hope the full 20% didn't go to the restaurant. Then I'd feel bad for my tip. But man, even if I only tipped 10%, then that makes the total a 30% extra fee over menu price.
Again, it depends on the wording. If it's a mandatory "service charge", it goes to the restaurant. If it's listed as a "gratuity", it goes to the server. But if I saw "service charge" on the bill, I would ask for a clarification just to be sure.
I am not the Six Million Dollar Man, but I might need that surgery. "We have the technology, we can rebuild him!"
I found a Facebook post on a page about San Antonio restaurants reporting a similar experience in Houston. This person experienced a service charge on the bill at two different restaurants for a party of two. That's just not right IMO and that would be the one and only visit to that restaurant for me.austinag1997 said:
Stayed at The Grand in Alabama couple years ago. Every restaurant around charged a separe fee from gratuities. Restaurant keeps it in that case. I argued it the first night only to realize they all did it.
I am not the Six Million Dollar Man, but I might need that surgery. "We have the technology, we can rebuild him!"
Col. Steve Austin said:I found a Facebook post on a page about San Antonio restaurants reporting a similar experience in Houston. This person experienced a service charge on the bill at two different restaurants for a party of two. That's just not right IMO and that would be the one and only visit to that restaurant for me.austinag1997 said:
Stayed at The Grand in Alabama couple years ago. Every restaurant around charged a separe fee from gratuities. Restaurant keeps it in that case. I argued it the first night only to realize they all did it.
I would want to know what it's going toward. If it's something like paying for health insurance and other benefits for the staff, I'd probably be ok with it. It does seem a little shady if you're posting your menu online with prices to lure people in, only to be hit with a 20% service charge once you get the bill. Just be transparent about it, and then I can decide to dine there or not.
HTownAg98 said:Col. Steve Austin said:I found a Facebook post on a page about San Antonio restaurants reporting a similar experience in Houston. This person experienced a service charge on the bill at two different restaurants for a party of two. That's just not right IMO and that would be the one and only visit to that restaurant for me.austinag1997 said:
Stayed at The Grand in Alabama couple years ago. Every restaurant around charged a separe fee from gratuities. Restaurant keeps it in that case. I argued it the first night only to realize they all did it.
I would want to know what it's going toward. If it's something like paying for health insurance and other benefits for the staff, I'd probably be ok with it. It does seem a little shady if you're posting your menu online with prices to lure people in, only to be hit with a 20% service charge once you get the bill. Just be transparent about it, and then I can decide to dine there or not.
I asked and nobody at the restaurant could explain it to me.
That's unacceptable. If it's not on their website or menu and no one there can explain what it is, I'd ask that it be removed.
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