More Canadian restaurants start tacking on an automatic 20 per cent tip to your bill

canada-man

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You don't have to live in Toronto to pay attention to the city's flap over restaurant tipping. These trends tend to migrate.

The Big Smoke is currently wrestling with a controversy over the practice by some restaurants of prompting an automatic 20 per cent gratuity to the bill, whether you were happy with the service or not.

The National Post reports two new restaurants, the Westerly and the Ace, are adding the automatic tip percentage on handheld electronic terminals.

The Westerly's co-owner Tom Earl says it's not compulsory but up to diners whether or not to OK the amount as they complete the transaction.

"Nobody's demanding that anybody tip anything," he told the Post. "It's a personal decision. If [customers] want to, they can. If they don't want to, they don't have to."

The commonly accepted tip these days is 15 per cent, more if you find the service exceptional. The recent move is drawing kudos from restaurant servers, who point out 20 per cent tips are customary in large U.S. cities such as New York.

"But while Toronto servers earn a minimum hourly wage of $8.90, waiters in the Big Apple only earn $4.65 per hour 'because their total compensation includes expected tips,' according to the New York State Department of Labour," the Post says.

Of course, in a flush town like Calgary, big tips are more common.

"Eighteen to 20 per cent is easily the norm," said Janet Watson, an Alberta-based etiquette expert. "Some people tip 25 per cent ... I don't know anybody who tips 10 per cent anymore. Fifteen per cent is the bottom line here."

In Vancouver, Cafe Medina manager Robbie Kane says his eatery assigns an 18 per cent gratuity to groups of eight or more. During the 2010 Olympics, many Vancouver restaurants and bars apparently added 20 per cent tips to the bill.

Server Aidan Johnston has worked in Australia, where the hourly restaurant wage is $19.50 and tips are small "keep-the-change" gratuities, and in Toronto, where the minimum wage is $8.90 an hour but a good server can earn up to $200 a night in tips.

"I like the excitement of getting tips," Johnston told the Toronto Star. "It's like opening a Christmas present when you see that billfold."

The Star reports that the low-wage, high-tip model is unlikely to change because restaurants operate on thin profit margins. Raising pay to Australian levels would raise
menu prices and remove some of the incentive to provide excellent service.

"Is Joe Consumer willing to pay 20 per cent more for a meal and have not great service?" asks Todd Sherman, co-owner of the Gabby's restaurant chain.

Some places take the compulsory tip practice very seriously. An American couple was arrested a few years ago for refusing to pay the automatic gratuity tacked onto their bill after getting poor service. Leslie Pope and John Wagner were hauled away by police and charged with theft for not paying the mandatory 18 per cent gratuity totaling $16 after eating at the Lehigh Pub in Bethlehem, Pennsylvania, with six friends.

Police later dropped the charges.

How do you feel about restaurants that tack on an automatic tip to your bill?

http://ca.news.yahoo.com/blogs/dail...start-tacking-automatic-20-per-213517141.html
 

simon482

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servers don't have to try for their tip anymore, service is gonna drop.

waiter.com has mandatory delivery charge of 10$, driver surcharge is a percentage, fuel surcharge and they don't provide change on any cash order, all going to the driver.
 

canada-man

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one night on Goldhawk live on Rogers tv 2 servers were talking about a system where servers give their tips to managers, even when they don't get tips they still have to give them to the managers
 

spraggamuffin

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I noticed this was done also when I visited Fogo de Chao in the US.

Some Asian Restaurants in China Town already did this but limited it to 15%.

Restaurant owners are laughing to the bank while customers subsidize their employees wages.

They should consider themselves lucky I'm eating at their restaurant paying a premium for often mediocre food.

They are the poster boys of taking a mile when given an inch though and as we've seen in Canada where the service industry is so huge, you can take that mile very easily.

Tipping should be a reward for good service not just because or to subsidize wages.
 

canada-man

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They should consider themselves lucky I'm eating at their restaurant paying a premium for often mediocre food.
which often takes over an hour to get to your table after your order in "steak houses"
 

The Fruity Hare

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Tipping should be a reward for good service not just because or to subsidize wages.
I agree with you here, and usually tip accordingly.


Restaurant owners are laughing to the bank while customers subsidize their employees wages.
On the other hand, I also know bar/restaurant owners who had to close down due to insufficient income. While there may be many that are raking it in, there are just as many or more who are just getting by.

I know the person quoted in that article, and I don't like the fact that he assumes if we had to pay 20% more for the food we would have poorer service. If we were forced to pay an extra 20%, the owner is making that money and can ensure we receive proper service by paying higher wages or we can vote with our feet.
 

Bobzilla

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The tip is included in many Latin American countries, like Costa Rica & Colombia & the service sucks. On the other side of the coin, many gringos go there not knowing that the tip is included & tip on top of it, which causes other problems, like higher "gringo pricing" in MP's.
 

Stockboy

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Another form of implied sale. Restaurant owners are betting that patrons will just go along on hit the accept button on the terminal.
I like to recognize top service with extra $$$ but I also recognize poor service by going in the opposite direction.
 

canada-man

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Restaurant bosses take bigger share of the tip

http://www.thestar.com/news/gta/article/794726--restaurant-bosses-take-bigger-share-of-the-tip


You probably know the generous tip you left for the server was divvied up between the server, kitchen staff and the host.

But did you know that many restaurants ask servers to give a part of the tip to the business, too? And that the amount demanded may have risen along with the minimum wage?

“It’s hard to believe but it happens at many places,” said Olivia Ouellette, who has worked as a server at Oakville restaurants for five years. “It’s like paying to go to work.”


based on the comments this has been going on for decades
 

Aardvark154

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A major part of the issue is the extra five percent.

"The recent move is drawing kudos from restaurant servers, who point out 20 per cent tips are customary in large U.S. cities such as New York." However, what they fail to mention is that the minimum hourly wage for waiters in Toronto is $8.90, while in in the City of New York it is $4.65. Further they fail to mention that average prices in New York are double what they are in Boston, Toronto, Montreal or Philadelphia and that waiters in the later four cities are not getting 20 percent tips.
 

simon482

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Restaurant bosses take bigger share of the tip

http://www.thestar.com/news/gta/article/794726--restaurant-bosses-take-bigger-share-of-the-tip


You probably know the generous tip you left for the server was divvied up between the server, kitchen staff and the host.

But did you know that many restaurants ask servers to give a part of the tip to the business, too? And that the amount demanded may have risen along with the minimum wage?

“It’s hard to believe but it happens at many places,” said Olivia Ouellette, who has worked as a server at Oakville restaurants for five years. “It’s like paying to go to work.”


based on the comments this has been going on for decades
waaaaaa
 

Moraff

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Pretty simple.... Mandatory tip => I'll go somewhere else to eat. For good service I will often tip 20% or more but that is my choice to make.
 

Ceiling Cat

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I would imagine in the age of the internet when enough people get fed up with the tack on 20% a web site will spring up to make a boycott list of these places and even give you an alternative place to go to where the mandatory 20% is not tacked on.
 

simon482

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I would imagine in the age of the internet when enough people get fed up with the tack on 20% a web site will spring up to make a boycott list of these places and even give you an alternative place to go to where the mandatory 20% is not tacked on

a smart business owner would would start that website and make sure his restaurant was on top. anyone that does add a mandatory 20% should be known for being cheap and trying to fuck customers.
 

Jade4u

It's been good to know ya
They are hoping that once it is already added to the bill that people will feel obliged to pay it. The places that do this automatically adding to the bill regardless of service should be protested imho and everyone should opt out leaving no tip at all to stop this madness. The problem is most people take little or no action to businesses doing what they want and once it works for a few others join in till it it everywhere and to late to do anything about it. Even sadder is those not realizing or thinking about what their total should be and leave a tip on top of a tip. We are so taxed to death with service taxes, food taxes, extra taxes on drinks, and if out with a bunch of friends someone may not even realize.
 
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