“I can tell you that the people that are doing it aren’t the people who are coming here because they’re looking for a sandwich because they’re hungry,” said Ravi Ramberran, “It’s the people who are not afraid of consequences period.”
In the wake of the increase in dine and dashers, Ramberran said his restaurant has ramped up how they deal with it.
“We blast them on Facebook, we hold them, we make them wait for the cops…We do what’s in our power to do.”
I was simply responding to what you said about consumers preferences driving tipping culture instead of the industry.
Yes, that’s right. That’s the topic at hand.
This example is basically to state that in order to eliminate the tipping culture and give workers the pay they deserve, the entire industry needs to change.
The only thing that will eliminate it is customers losing their desire to tip. They are under no obligation to. They do so because they want to! They could literally end it right now. But why should they? They clearly derive enjoyment from it, as found out in that tip rejection experiment.
Like you said, we 100% agree that the business would be better off charging more for the service (more revenue) instead of seeing the transaction split between the business and the workers (less revenue). There is no question that restaurant businesses, if it were up to them, would prefer to charge more for the plate over having tips. That gives them greater cashflow to work with and increased profitability on the margins.
But you can’t get blood from a stone. If the customer wants to split the transaction between the business and the workers, there isn’t much a business can do beyond saying “no soup for you” – but that’s even less profitable than accepting a split transaction. Restaurants are forced to begrudgingly accept (if they want to be profitable).
I see what you mean. It is true that if the restaurant wage problem was solved tipping wouldn’t go away overnight, especially since many consumers in North America are used to the idea of tipping. However, I do believe it would slowly become less common as it is in other countries.
In places where tipping is less common, customers view the prices as fully baked in. What they pay includes the price of the food and providing enough so their workers can live. There’s no guilt over not tipping. Some people may if they like the service, but most won’t. Additionally, the consumer is able to make a more informed choice since they are able to see the actual cost of their meal. They also don’t have to choose having the soup vs. tipping someone enough to live.
I think my main point is that random patrons shouldn’t be able to determine whether someone can pay rent after working 12 hour shifts for a month. Letting the consumer split the cost of a transaction between the business and the worker is always a losing situation for the worker. The cost of the food is fixed, the business will always make X amount of dollars per transaction. Meanwhile, tipping is variable so the worker is never guaranteed a fair sum.
If workers were paid properly then tipping would be viewed as an actual reward for doing a good job instead of a restaurant worker subsidy program as it currently stands. As I see it, the whole industry needs to change with actual laws backing up it up or else a few bad actors can ruin everything in the name of wanting to be profitable.
It is true that if the restaurant wage problem was solved
Not hard to solve. Just stop tipping. Wages will adjust. Wages are only artificially low because the workers know they will make up the difference in tips. Take that away and they will demand more from the employer instead. Pretty simple.
Letting the consumer split the cost of a transaction between the business and the worker is always a losing situation for the worker.
Being the one who receives the money is always the winning situation. More revenue is better than less revenue. We already “100% agreed” upon this earlier.
I think my main point is that random patrons shouldn’t be able to determine whether someone can pay rent after working 12 hour shifts for a month.
Who is sticking around for a month if the tips aren’t showing up? Even a mid-scale restaurant will see tips into the $20-30 per hour range, and the classiest restaurants can go even higher. One will be jumping to a new job the next day if one particular restaurant is failing to attract a clientele that tips sufficiently.
You make it sound like the workers are some kind of helpless blobs that have no idea what is going on around them.
As I see it, the whole industry needs to change with actual laws backing up it up
And what’s going to drive that? It takes the will of the people to change laws, but those very same people could just stop tipping. Trouble is that they want to tip.
I am on the Artemis app for Kbin which hasn’t been updated to allow quoting yet so excuse the strange formatting. Each of the following paragraphs will address each point in order.
1: Wages will certainly not adjust if tipping went away, there would just be less workers willing to take those roles. It’s not the workers keeping wages artificially low, it’s the restaurants owners who do. Having workers successfully demand higher wages on an industry wide scale just isn’t feasible without unionization. Sure there may be individual situations where workers actually get a raise but I don’t see this being the norm. Employers do not have to capitulate to raising wages, especially if workers have no other options available to them.
2: Workers can get tipped and be paid fairly. It’s not a zero-sum game. Paying workers a livable wage so they don’t rely on tips is what I consider to be the “winning situation”. Customers can tip if they want to which means more money for the worker and if they don’t receive tips then it’s not big deal since their wages are enough to cover their expenses. This is in contrast to what we have now where tips are used to supplement wages. So with increased wages and with people still deciding to tip on occasion, the average worker would actually make more money, not less. In terms of revenue for the restaurant owner or chain exec, I could care less.
3: You are ignoring a variety of important factors in the assertion. Not everybody lives in an area or can easily move to one where they can make that much in tips. Not everybody can easily switch jobs and take a gap in pay. Not everyone is in an area flush with jobs where they can get paid properly. Sometimes surprise expenses come up and mess up your budget when you are living paycheck to paycheck. Basically, not everyone has the means to actually do what you are suggesting. If people could easily find a new job to make up for any budget shortfalls then we wouldn’t see bankruptcy and homelessness run rampant.
4: People don’t care about the actual concept of tipping at all. Who needs to drive this is restaurant workers getting together and collectivizing to have bargaining power over restaurant owners. I doubt workers care about tipping over getting paid a livable wage with the added bonus of some people still tipping. If workers withhold their labor then restaurant owners will have to give in. This will lead to actual material change for these workers. I know it’s a long shot but it is a viable way to achieve these goals without involving consumers and their tipping habits. All of this is achievable (unless restaurant owners do what hospitals do when they try to unionize and bring in outside labor at a higher cost (which ironically would increase wages for those people, just not for those who got fired for trying to bargain) within our current legal framework.
