But Will You Still Tip? Chicago City Council Votes to End Tipped Minimum Wage (for sale, apartments)

[Kmanshouse]

Originally Posted by HodgePodge

I've always found tipping @ restaurants as a strange thing to do. I mean I do it because it's expected.

But how often have you had horrible service or even rude service? At those times I don't tip. My thoughts are that you are suppose to tip for decent / great service.

TBF at a busy restaurant, the servers make a lot of their earnings via tip... unless the business rips them off by taking a chunk.

I'd like to know how much $$$ the typical restaurant makes and if they are super profitable, then they are doing it off the backs of the servers by underpaying them, putting the burden of paying them on us customers.

I say get rid of this antiquated way... the price you see is the price you pay.

Tips are typically pooled - turning over tables with high tickets is lucrative.

If wages go up from $9 to $16/hour, restaurants are going to either keep more of the tips (offsetting the wage cost), or they will increase the prices on the food, and the customers will then pay the increase.

If the former, we, the customer, won't really see any change at all - it's just moving money around. If it's the latter, then one of 3 things will happen.

1) Fewer customers will come in, and more restaurants will close, or
2) customers will just bend over, pay the extra money, or
3) customers will reduce their tips to be able to afford the eat out.

My take is that #3 won't happen (habits), so it'll be a mix of #1 and #2.

[tnff]

I read an article not long ago about DC going to this system and now the servers were complaining that they were losing money. So what if min wage is $15, even here in nowhere Tennessee, just taking my wife out the bill runs around $50. That means a $10 tip (at 20%) for what was just a few minutes work. Then consider they are serving 4-5 other tables at the same time. Add that up.

When my oldest graduated college we took her and the rest of the family, (grandparents, etc) to the nicest place there. The tip came to about $100. Think about that. The waiter made a hundred bucks for one hour's work.

My fear is they will pay higher wages, so the restaurant will charge higher prices, and then they will still expect 20% or more on the higher bill.

[Kmanshouse]

Originally Posted by tnff

I read an article not long ago about DC going to this system and now the servers were complaining that they were losing money. So what if min wage is $15, even here in nowhere Tennessee, just taking my wife out the bill runs around $50. That means a $10 tip (at 20%) for what was just a few minutes work. Then consider they are serving 4-5 other tables at the same time. Add that up.

When my oldest graduated college we took her and the rest of the family, (grandparents, etc) to the nicest place there. The tip came to about $100. Think about that. The waiter made a hundred bucks for one hour's work.

My fear is they will pay higher wages, so the restaurant will charge higher prices, and then they will still expect 20% or more on the higher bill.

That's not how tipping usually works. All the tips are collected for the night, and distributed to the waiters, hostesses, bus boys, etc.

[SonySegaTendo617]

Originally Posted by Treeman1

So servers will be making $15.80/hr in five years. Did I read that correctly? So $130/shift or so?

A pretty far cry from the $200+/shift they generally make today after tipping out in today's dollars at mid-tier places.

Good for those working in crappy restaurants, bad for those at mid- to-upper tier eateries.

People will still tip, however. That, or restaurants will continue raising wages. For instance I don't see the Aviary bartenders coming home with only $130 a night; otherwise, goodbye Aviary

My brother used to be a server at a few restaurants. One was a more upscale restaurant, one past place was a Moretti's, and another was Chili's. He told me Chili's customers tipped the least, Moretti's a little better than Chili's(but still some tips were below average there at times), and the upscale restaurant he once worked at were the best tippers. Yeah I'd agree with your assessment that this law change will mean servers at upscale restaurants will have decreased tips the most, vs. at more regular restaurants like Chili's and etc.

[dtcbnd03]

Makes sense since tipping is a % of spend so higher end eateries will have higher tips as well as more disposable income.

I hope tipping goes away. Makes no sense and so much better in Europe not having to tip.

[ChiGuy2.5]

My cousin serves at high end restaurants and can pull in over $1k for a single night of work. This switch will allow a larger cut of the profit for the business owners because they can charge more for the food, but servers are left in the dust.

The other negative effect that I could see this having is on work hours.

As it is now, the best times to work as a server or bartender are on nights and weekends when places are busiest and you can get the most tables. Switch to hourly only and they will prefer to work traditional 9-5 type of hours instead of working until 2am.

I'm guessing that it will end up as a sort of hybrid approach with the cheapest customers not giving any tips at all.

[HodgePodge]

Originally Posted by ChiGuy2.5

My cousin serves at high end restaurants and can pull in over $1k for a single night of work. This switch will allow a larger cut of the profit for the business owners because they can charge more for the food, but servers are left in the dust.

The other negative effect that I could see this having is on work hours.

As it is now, the best times to work as a server or bartender are on nights and weekends when places are busiest and you can get the most tables. Switch to hourly only and they will prefer to work traditional 9-5 type of hours instead of working until 2am.

I'm guessing that it will end up as a sort of hybrid approach with the cheapest customers not giving any tips at all.

Wait... you telling me your cuz can pull in 1K for himself?

Jeez forget about getting a fricking degree in marketing, hook me up.

BTW I wonder how much of that 1K he declares as income... I suspect it's less than 40%.

[Master Jay]

I'm highly considering switching from a social work position to becoming a male exotic dancer, working for tips.

The money that those ladies would throw my way to stop dancing, and to get off the stage, would be beyond plentiful.

I would declare all that tip money on my taxes ( in case anyone connected to the IRS is reading this ).

[Treeman1]

Originally Posted by HodgePodge

Wait... you telling me your cuz can pull in 1K for himself?

Jeez forget about getting a fricking degree in marketing, hook me up.

BTW I wonder how much of that 1K he declares as income... I suspect it's less than 40%.

Making a thousand a night would be HIGHLY irregular in Chicago, even in a 3 star Michelin restaurant or club where athletes attend.

I could see it hapening at a New York, LA or Miami club, but Chicago doesn't really have that kind of scene.

As for whether or not he pays taxes, why make the assumption he doesn't. Tax avoidance is an enormous problem in this country, but it certainly isn't due to restaurant workers undereporting.

[Bitey]

Originally Posted by GWoodle

Simple answer would be to not go to Chicago restaurant.

And this is exactly what I plan to do, at least for full-service restaurants. I'll make an exception for the precious few that have already adopted the "no need to tip, we pay our servers standard wages" model and have publicly stated so, and for those that do so in the future.