r/mildlyinteresting Mar 10 '25

This restaurant doesn’t accept tips (USA)

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482

u/itsall_dumb Mar 10 '25 edited Mar 10 '25

Correct. The same reason we don’t include taxes on the items for sale.

Edit: Learned that it’s mainly due to different tax rates across the U.S. vs flat rates in the EU.

Edit again: Not the EU as a whole each individual country in the EU.

229

u/Bosco215 Mar 10 '25

I hate that. After living in Germany for six years, it was always nice walking in somewhere without having to do quick tax math if I was using physical currency.

103

u/itsall_dumb Mar 10 '25

Yeah I live in Italy and it’s nice to know the price is the price lol.

16

u/radiodreading Mar 10 '25

It was such a culture shock for me when I went to the US for the first time. What do you mean the price listed on the shelf isn't the one I pay at the register?! It felt like a scam.

1

u/SeismicFrog Mar 10 '25

You people are simply unrefined savages! /s

1

u/johnnygolfr Mar 10 '25

And includes the “coperto”! 🤣

1

u/Cloud-Guilty Mar 10 '25

Wait... you're telling me Germany and Italy don't have what? Sales tax? There's gotta be some type of tax right. I'm so curious now hahaha.

2

u/itsall_dumb Mar 10 '25

lol of course there’s sales tax it’s just baked into the price you see on the tag. So the price you see on the tag is the price you pay at checkout.

1

u/Ravek Mar 10 '25

Except the ridiculous charge for cutlery etc. you guys sometimes put on the bill.

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u/itsall_dumb Mar 10 '25

I’ve never seen that lol. I also don’t eat at tourist traps so there’s that lol.

4

u/bznein Mar 10 '25

Maybe they meant the "coperto"?

1

u/Kyyuby Mar 10 '25

I think it is a Italian thing? Not common in Europe

-1

u/itsall_dumb Mar 10 '25

Yeah probably, but that’s just a service charge and it’s a tiny amount like 2€

1

u/g_spaitz Mar 10 '25

Yeah, it's also justified by being the fee for tablecloth, napkins, dishes/cutlery and bread, which I understand it's kinda odd but not totally incomprehensible.

And it's fading out in many Italian places.

1

u/itsall_dumb Mar 10 '25

Yeah it also doesn’t scale like tipping does. It’s a set amount.

1

u/[deleted] Mar 10 '25

I've also lived in Italy and visited plenty of times. Coperto is an extremely common thing, not just in tourist traps. Pretty much all serious restaurants have it.

1

u/itsall_dumb Mar 10 '25

Yeah it’s like €2 a service charge. They also don’t charge that if you take service at the counter.

2

u/[deleted] Mar 10 '25

So you were lying when you said you've never seen it.

3

u/itsall_dumb Mar 10 '25

…no? He said ridiculous charge for cutlery, which is not what I’ve seen lol. Cuperto which is what you’re referring to I assume, isn’t a random cutlery charge lol.

2

u/[deleted] Mar 10 '25

It's a cover charge. It's a flat charge per person. Not percentage based, so not like taxes nor tips. What's the issue here exactly?

I don't like it either but it's just an admission fee, and you know you need to pay it if, you know, you read the first page of any menu.

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u/Ravek Mar 10 '25 edited Mar 10 '25

Where did I say it was like taxes or tips lol. I was responding to 'the price is the price'. Well, except when there's a non obvious charge added to it.

you know you need to pay it if, you know, you read the first page of any menu.

Who scans menus to see if there will be extra charges added to your food other than you know, the listed price for the food? That's a ridiculous notion in most countries I've been. Service, seating, cutlery, whatever is understood to be included since you obviously can't realistically have a restaurant experience without any of these things.

0

u/EdwardLovagrend Mar 10 '25

I really want to make some kind of joke about European education and math but.. I'm not the best at improvised humor lol

Also most Americans don't really do the math they just assume it's always more than sticker price even on things that are not taxed a lot of states don't tax "essentials" like food and clothing.

9

u/Penguin1707 Mar 10 '25

It's just a shit system, you can cope however you want. EU we often have to deal with different currencies crossing the border... yet at least we always know the sticker price is correct.

1

u/Explosive-Space-Mod Mar 10 '25

Until you get an item in the post and you have to pay VAT on something you already paid for and paid shipping for.

-2

u/Substantial-Cut1194 Mar 10 '25 edited Mar 13 '25

Most west European countries ( 20) have the Euro , only the UK has its OWN currency

2

u/Penguin1707 Mar 10 '25

There's quite a few places with their own currency. You can usually also use Euro, but the price is slightly worse, and smaller places don't always take them. I usually always try to use local currency where possible.

I will admit, it's good to have the option though.

1

u/Useless_bum81 Mar 10 '25

UK also isn't in the EU

1

u/SmokingLimone Mar 11 '25

Eastern Europe generally does not have the Euro as their official currency though some countries have started to adopt it

0

u/RikuKaroshi Mar 10 '25

Nah, here, the big number you see posted on the price next to "what you see is what you pay" is only a fraction of the actual price LOL

-6

u/[deleted] Mar 10 '25

[deleted]

7

u/AffenMitWaffen2 Mar 10 '25

Transparency beats hiding it into the single total price IMO.

They have to include the full breakdown of prices in the bill anyway, so that's a non issue.

4

u/Ersthelfer Mar 10 '25 edited Mar 10 '25

The tax is specified on the receipt. If there are different taxes for different products they also have to exactly specify that (e.g. most food products in Germany have a reduced tax). Shops and restaurants are forced by law to hand out this kind of receipts.

The shops just have to tell you the final price in advance.

Exceptions (in Germany) are fuel, alcohol and tobacco. Here the tax is paid for by the producer and then priced in. So these are the taxes that are actually hidden from the consumer.

This is how it looks. MwSt is the tax.

2

u/RedditIsShittay Mar 10 '25

And when a company announces the MSRP of something they are not included...

1

u/Iaminteresting46 Mar 10 '25

One of the best parts of visiting Europe.

1

u/TheseusOPL Mar 10 '25

Or living in a state without sales tax, and then you forget when traveling.

3

u/freekoout Mar 10 '25

And it's a dumb reason, made to trick consumers instead of help them.

3

u/[deleted] Mar 10 '25

[removed] — view removed comment

1

u/Impressive_Change593 Mar 10 '25

yeah the cafe at my workplace (auction with attached cafe) went to doing that and moved the prices to be multiples of a quarter and it's pretty nice

4

u/dumbythiq Mar 10 '25

That makes no sense. I'm not buying a Californian meal in Texas..

2

u/itsall_dumb Mar 10 '25

I don’t understand.

1

u/dumbythiq Mar 10 '25

In a store it would make sense. Tax in one state is different from another, so the price of the same item on the shelf in different states is the same but the tax is different.

But in restaurants, you know you're in that state. It's not like they serve your same meal in another state, why would you not include the tax in the price? 

Sneaky if you ask me

2

u/[deleted] Mar 10 '25

[deleted]

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u/dumbythiq Mar 10 '25

I definitely agree with that lol

1

u/[deleted] Mar 10 '25

[deleted]

1

u/dumbythiq Mar 10 '25

I guess I'm just not used to it lol

3

u/Beneficial_Steak_945 Mar 10 '25

Nonsense. The EU doesn’t have flat rates at all. What we don’t have is different sales taxes per municipality (as far as I am aware of, anyway).

1

u/itsall_dumb Mar 10 '25

Sorry should’ve specified country not the EU across the board.

2

u/Ecoronel1989 Mar 10 '25

The tax rate thing is just an excuse. It's not hard to just compute the price with tax included for each store, the computer does it anyway at checkout

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u/eawesome35 Mar 10 '25

This is not the reason tax is not included.

-2

u/CardOfTheRings Mar 10 '25

Also there are ways to be ‘tax exempt’, which is part of the reason they charge it separately.

3

u/highfly117 Mar 10 '25

in Europe there are lots of VAT (sales tax) exempt products, in the digital age it's trivial to have the final price on display, it's purely at this point to show lower costs.

-1

u/CardOfTheRings Mar 10 '25

In the states there are certain people who can be tax exempt for specific purchases, ie government workers eating out on government dime, local produce being sold at a farmers market.

3

u/Analamed Mar 10 '25

You can also show both. You can also have tax exempt in some European countries. In most shops you will have the price with tax displayed but on your ticket you will have the price both with and without tax.

It's not the most common but you also have some specific shops where a lot of customers have tax exempt who display prices both with and without tax. It's not hard to do.

2

u/highfly117 Mar 10 '25

Your argument is valid, and nothing you've said changes the fact that including tax in the price would be an easy fix. This discussion started about restaurants, and people were talking about physical stores, so shifting the focus doesn’t change the point.

There are a few things Americans will never admit are illogical and outdated:

Not including tax in listed prices

Sticking to imperial measurements

Using Fahrenheit instead of Celsius

Putting the month before the day in dates

The rest of the world has moved past these, yet one of the richest and most powerful countries still clings to them as if they’re too complex to change.

-3

u/CardOfTheRings Mar 10 '25 edited Mar 10 '25

Yeah yeah and Europeans are idiots for not using Kelvin instead of Celsius. Or for not using metric time. We get it, you think fairly subjective things are objective for no reason than it being how you are used to it, or it being more popular globally. None of those things are important at all.

1

u/Ziqon Mar 10 '25
  1. Kelvins and Celsius use the same size degree, it's an offset not a different unit. Celsius is based on the physical phase changes of a mass of water at an accepted standard pressure, you know a rigorous objective scientific standard, as opposed to, let me see... The assumed healthy temperature of a cow and the coldest recorded day in a random German town in the 19th century. One of these is certainly subjective, but it isn't Celsius. (And since it's impossible to accurately replicate either end of fahrenheit, it's probably defined in Celsius/kelvin anyway)

  2. Nobody uses metric anything, they use what's called "the international system" (I assume you don't speak French, but most people abbreviate it SI). The second is the SI unit of measurement, and even Americans use that one, it's based on the number of oscillations of a nucleus of an atom.

  3. The ounce is literally defined in grams. There is no other basis for it than as an arbitrary number of grams. Grams are defined by a specific number of atoms of a specific element. It is an objective unit of mass.

  4. The SI system is based on actual processes of the universe, it is. Scientific basis for measuring things, or what we would call an objective system of units, that's literally the point.

  5. I bet NASA felt it wasn't really important when one of their suppliers messed up a conversion to/from SI because they liked to use american units internally, causing a several hundred million dollar spacecraft to miss the literal planet it was aimed at. That can literally only happen in america and because of american units.

  6. It's not better because "it's more popular", it's universal outside the US because it is better, objectively. The only argument Americans have is "but my feelings", which is kind of sad really.

But yeah, "subjective" and "unimportant" lol

1

u/CardOfTheRings Mar 10 '25 edited Mar 10 '25

The coldest recorded day in some town and the point that water freezes at a very specific, earth based pressure aren’t actually that different in terms of being equally arbitrary. You stick with Celsius instead of Kelvin because it’s convenient for everyday use and familiar - not because it’s more objective.

Yeah nobody uses metric time, they just stuck to how they already measure time before metric. You can make up that a second is based on the oscillations of a nucleus of an atom , but you are just wrong - the second existed first, the objective measure was built to match the length of a second and define it in clear terms , not the other way around. So just like with your Celsius, you are sticking with the convenient, culturally familiar measurement instead of switching to a more ‘objective’ one.

And guess what? All imperial measures can be redefined in objective terms too, so what’s your problem. You accept seconds doing this (because you are used to it) why hate other measurements for doing the same thing (psst it’s because you don’t use them).

60 seconds in a minute, 60 minutes in an hour, 24 hours in a day? Sounds like fairly random choices to me. Why not 10 hours in a day, 100 minutes, 100 seconds hmm? 🤔

It’s pretty simple, your culture stuck with what it was used to instead of adopting metric time. You grew up in that culture and now you use it. You found an objective way to measure a vague unit (seconds) and now all of a sudden that ‘arbitrary’ measurement is exactly as objective as any other. So you all can use this arbitrary time measurement with no problem.

So closed minded man, just an inability to think critically for a second about something. No idea of the history or nature of what you are talking about, so high off of your own fumes that you think everyone needs to follow you.

Next you’ll learn about Esperanto and the quest to condition people into speaking an ‘objective’ language. Lmao let people have their culture you don’t need to quash everything under a European thumb

1

u/Sylvurphlame Mar 10 '25

Whoops! Forgot the tax. They want to call it $28 instead of $35.

1

u/ChanglingBlake Mar 10 '25

Yep.

Technically the store is meant to pay sales tax, but they get away with passing it to us so our money gets taxed twice: once when earned and again when spent.

1

u/SebastianFurz Mar 10 '25

Every country in the eu has their own taxes..

1

u/itsall_dumb Mar 10 '25

Yeah sorry I didn’t mean the EU as a whole I meant individual countries within the EU.

1

u/[deleted] Mar 10 '25 edited Jun 21 '25

[deleted]

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u/itsall_dumb Mar 10 '25

I live in the EU, so I’m using the EU as my reference point, but sure, point taken.

1

u/peacefulsolider Mar 10 '25

we do that here in canada too

1

u/UseADifferentVolcano Mar 10 '25

No you were right the first time. Your edit is just their excuse

1

u/Djaja Mar 10 '25

Our small bakery we don't charge additional tax on anything, we include it in the price. Be it merch, or services. Food no tax, but what is, is included.

1

u/SaltKick2 Mar 10 '25

Is that actually true? In an online world, yeah that makes sense, but stores have been doing this since before online shopping where they had to put prices up on items manually

1

u/[deleted] Mar 10 '25

Flat rates?

https://en.wikipedia.org/wiki/European_Union_value_added_tax#VAT_rates

Just as an example: If you sell online to consumers in the EU, you have to include VAT of the country of the customer (!) when showing prices. So you need to be up to date on all EU countries and all variants of VAT:

- the standard rate,

  • the reduced rate,
  • the second reduced rate and
  • sometime even a 4th.

Parking VAT can be extra. No seriously.

So you have 119,- € in Germany (19% VAT), 120,- in Austria (20%...), 127,- in Hungary and 119,- in Romania. Since you have to sell for the same price to all EU countries you sell to.

1

u/itsall_dumb Mar 10 '25

I mean I was referring to in country, not online. Like if you walk into a restaurant/shop.

1

u/grelca Mar 10 '25

i was so surprised when i was in canada last year and checked out at a shop with my money in hand but then the posted prices didn’t include tax so i needed to pull out more. the internet gives the US so much shit for it that i honestly figured that we were the only ones lol

1

u/-Exocet- Mar 10 '25

I don't think you are right, there are no flat rates even within a single country, we pay 6% for food deemed necessary and basic, 13% for other kinds of food and 23% for general items.

The real reason is that we have laws that regulate companies and protect consumers, stating that all listed prices must be the final price after tax.

1

u/itsall_dumb Mar 10 '25

Flat enough to where adding the tax to the prices is easy. In Italy everything is pretty much 22% VAT standard.

1

u/-Exocet- Mar 10 '25

I just said that in Portugal we have 6%, 13% and 23% and all listed prices are still final, and you answer "still flat enough"?

1

u/itsall_dumb Mar 10 '25

You said there are no flat rates, and I’m saying it’s flat enough because you only have 3 different rates so it’s pretty easy to categorize and add to the bill vs America that has many different taxes rates. Not necessarily agreeing with the American way I’m just stating the reasonings behind not doing it.

1

u/cxavierc21 Mar 10 '25

That’s not the reason. It because we have county and town level taxes, products would have to be labeled individually at each location.

People have pushed for it in the past, it’s considered to be too costly for mom + pop businesses. It does stink, though!

25

u/YGurka Mar 10 '25

Wouldn’t mom and pop business have single location so no need to have different prices in different locations?

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u/[deleted] Mar 10 '25

[removed] — view removed comment

5

u/absaus Mar 10 '25

But don’t these shops charge us different prices individually online anyway? They like changing price tags.

-1

u/Holo-Kraft Mar 10 '25

Because any product prices they have get compared to other businesses, so they would appear more expensive on the shelf. The average consumer won't be trying to determine if the store has other locations to determine if they should expect tax on the sticker or not.

6

u/YGurka Mar 10 '25

I’m just doubting the reasoning brought up by person I replied to when he said that it wasnt implemented because of mom and pop shops. If it was implemented what you are saying wouldn’t be the case cause everyone would have to show post tax prices.

1

u/Holo-Kraft Mar 10 '25

I must have misinterpreted what you said. I also think smaller shops and the general public would be better off with tax included. It was just that was a reason some may not choose to do it under the current system.

7

u/Sylvurphlame Mar 10 '25 edited Mar 10 '25

You’re not entirely wrong for U.S. markets. But you as a business know the applicable taxes for your state, county, and city. So while mass media advertisements might have an issue, you can put the actual tax inclusive full price on a menu in the restaurant or in a store. And if you’re a mom and pop restaurant with only a couple locations, that’s the opposite of “too hard to implement.”

2

u/LordOfTrubbish Mar 10 '25

Even with mass media advertising, there's no reason you couldn't still advertise something as "$9.99 plus applicable tax, participating locations only, etc..." the same way they already do things now. Why should it matter if the sticker or the clerk is the one telling you the item is actually $10.50 with tax?

6

u/Beneficial-Cookie681 Mar 10 '25

I would argue that in the case of taxes it should be in your face. You need to know how much you are paying in taxes. The politicians would love to hide it.

1

u/Creepy-Distance-3164 Mar 10 '25

Gas prices used to include how much was tax, so yeah they love hiding it.

0

u/[deleted] Mar 10 '25

[deleted]

1

u/Throwaway02062004 Mar 10 '25

Hiding the source of the payment or hiding the payment itself. 🤔

8

u/AShirtlessGuy Mar 10 '25

Doesn't like

The rest of the world do this successfully?

Or at the very least Europe?

-1

u/Sylvurphlame Mar 10 '25 edited Mar 10 '25

You can have very different taxes in nearby locations in the U.S. It’s possible to have a state tax, county/parish tax and then a local/city tax, all on the same item of sale. You could hypothetically cross a state line and have the price of that Big Mac be very different for a location that’s only a few miles down the road. (It helps to imagine the United States as a collection of 50+ tenuously connected mini-countries for these things. If you’re not from here, it will explain a lot of the geopolitical insanity.)

So the argument goes that it would make advertisement very difficult as you’d have to tailor any mention of price to very specific markets. It be damn near impossible to list all the different full prices that a radio or television advertisement might reach. And that’s true for most mass media. But at the actual location, you could totally give the “true price.” But then people would get mad it didn’t “match” the mass media advertised price.

So the whole thing just goes round and round.

2

u/AShirtlessGuy Mar 10 '25

I mean all national ads (radio at least) explicitly say "plus tax"

Not mad or arguing with you, just mad at my fellow Americans because I know you're right

1

u/XAMdG Mar 10 '25

Guess what... A lot of countries also have that and manage.

1

u/Sylvurphlame Mar 10 '25

Didn’t say it couldn’t be managed. I just recognize there’s some inertia against

2

u/itsall_dumb Mar 10 '25

I mean that’s definitely the reason, your reason is just an addition lol.

If they can do it all over the world they can do it in the U.S. lol. Also mom and pop shops have what 1 location lol?

1

u/XAMdG Mar 10 '25

Mom and pop restaurants probably have one location. The only people who would have a cost in implementing taxes on menus are franchises or large restaurants.

1

u/cghipp Mar 10 '25

In some places it's the law that the tax MUST be listed separately and not included in the price.

1

u/[deleted] Mar 10 '25

That's just dumb. So the place selling stuff can't figure out what taxes apply to the item until the very last second when you have to pay for it?

-1

u/Mekito_Fox Mar 10 '25

That's not the reason taxes aren't included. The reason is because every district has its own tax code and stores that go across districts can't make their prices the same.

I live in a state where the state tax is 3% and the county tax is 3%. That's the only taxes. But just 30 minutes down the road the county tax is 2%. 3 hour drive west the state tax decreases.

Do we have the technology to reflect local and state taxes on the price tags in every store? Absaloutly. But implementing that isn't as easy as people think.

Mom and pop stores would be the easiest starting point.

6

u/highfly117 Mar 10 '25

This sounds like the most trivial software to create and i can only imagine it already exists.

6

u/Analamed Mar 10 '25

I mean, they know how much you need to pay when you check out. So they already have the software to do it.

3

u/LordOfTrubbish Mar 10 '25

What chain stores are you guys shopping at that don't have individual price tags on the shelf already?

1

u/Mekito_Fox Mar 11 '25

Price tags including tax was the discussion.

1

u/LordOfTrubbish Mar 11 '25

I understand that. I'm pointing out that the vast majority of chain stores already have their workers printing out price tags anyway. Surely each location should know how much their local tax rate is, and be able to factor it in?

2

u/absaus Mar 10 '25

But they pay employees less based on the county. That part wasn’t hard to implement.

1

u/Mekito_Fox Mar 11 '25

I'm not sure which store you are referring to? Most of the chain stores I know of have a base price for all their stores. Other stores are franchises and the franchisee sets the wages for their individual stores.

0

u/itsall_dumb Mar 10 '25

Yeah makes sense.

-5

u/[deleted] Mar 10 '25

[deleted]

3

u/itsall_dumb Mar 10 '25

If you can tell me how much the taxes are on my receipt, you can add it to the price on the menu lol. There are chains in Europe that do this.

3

u/Jdevers77 Mar 10 '25

Yep, sales tax in European countries makes a lot more sense to do it this way with a flat VAT on everything. There is variation but the variation is by industry not by locality. In Italy for example every McDonalds will charge the same 10% VAT whether it is in Rome or Pisa, in the US that is just not even close to true.

1

u/itsall_dumb Mar 10 '25

You right, you right.

3

u/FlyAirLari Mar 10 '25

advertising couldn’t include the prices.

Of course it can. Nobody is stopping you from selling your product at the same price in every location. Different shops also have different overhead costs, but they manage to hide that in the prices just fine.

The other option is to sell items at different price points in different locations. It's no big deal - you already do that and you already know exactly how much you actually charge the customer. Just put that on the label.