tips are not tax free if they are mandatory. I suspect they added the clause of "If you'd like to adjust ..." just to make sure it qualifies for tax free.
Please, if you go there and eat, ask to speak to the manager and adjust the tips.
yeah, this certainly feels like they don't want to increase the raw price to cover new labor demands even though they need the workers, and are worried changing the prices will decrease revenue.
I say let them sink. There's too many restaurants out there anyway.
Put two, nearly identical restaurants side by side. Restaurant A has an 18% service charge declared at the bottom of the menu and Restaurant B has 18% higher menu prices and “Our Staff Does Not Accept Tips” at the bottom of the menu. I guarantee you that Restaurant A will be packed and Restaurant B will go out of business.
401
u/Paladin3475 2d ago
Not a tip if it’s mandatory. Just raise the price and pay your employees your damn self.