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But they are adding a 22% surcharge to all orders. They say this way everyone will get a fair portion, including the back of house staff. This is crazy to me. What if the food is bad? What is the service is Bad. When did tipping become expected everywhere. Go to pick up a carry out and they want a tip, now they are just going to add an additional 22% onto your order and you have no say in it? I hope this is a trend that doesn't catch on.

 

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El Guacho has been doing this for a few years.

I don't love it, but am OK with it - as long as I don't forget and then tip 25% on top of that.....usually happens after a few glasses...

Typically the restaurants that do it this way also provide insurance and other benefits for their staff.

Would you rather they just raise their prices 22% to offset it and tell you not to tip?
 

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But they are adding a 22% surcharge to all orders. They say this way everyone will get a fair portion, including the back of house staff. This is crazy to me. What if the food is bad? What is the service is Bad. When did tipping become expected everywhere. Go to pick up a carry out and they want a tip, now they are just going to add an additional 22% onto your order and you have no say in it? I hope this is a trend that doesn't catch on.

You tip on carryout because you don't want spit in your food.
 

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Take your money elsewhere. But your right, if it's a trend, not good. How do we know if it's really being divided fairly? Also, as this extra cash gets to be expected, servers won't have the incentive to come by our table and check on things, service will decline, you can bank on that. The good servers always make more than the bad ones for a reason,,,gregg
 

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Don’t like it. Europe is basically no tipping. Have had some atrocious service over there, where the tip would have been a couple pennies, but, nope tip built in to bill. TIP Too Insure Prompt Service.
 

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Take your money elsewhere. But your right, if it's a trend, not good. How do we know if it's really being divided fairly? Also, as this extra cash gets to be expected, servers won't have the incentive to come by our table and check on things, service will decline, you can bank on that. The good servers always make more than the bad ones for a reason,,,gregg
People still eat out? I'm a decent cook. I've learned to appreciate the comfort of my home and yard. So called leaders have changed the way we live here. I guess that's what they want? Power and control? The Wife and I have eaten out exactly six times since the lockdowns came from our dictators. It's not enjoyable to have to mask up to go to the poker machines, the bathroom, step outside to the smoking area. Mask-up--Mask-down, BS. Things are really screwed up in this country when business can't get employees. And when they do half, or more, won't show up to work. Gen-x, Millennials and Gen-Zers hardly want a job, and if they have one a bunch of them don't show up to work anyway. It's the new me. I don't need them anymore the way it is now. They can all starve, for what I care..
 

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El Guacho has been doing this for a few years.

I don't love it, but am OK with it - as long as I don't forget and then tip 25% on top of that.....usually happens after a few glasses...

Typically the restaurants that do it this way also provide insurance and other benefits for their staff.

Would you rather they just raise their prices 22% to offset it and tell you not to tip?
Yeah, I would rather they just raise they prices, pay their employees a decent wage and get rid of tips.
 

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I think that it makes a lot of sense to include a tip. It's already common for large parties.

I feel like if you can't afford a tip, you shouldn't eat out. It's not fair to good workers to get stuck with bad customers who are entitled to leave zero or almost zero tips.

If you have a problem with the service or the food do the responsible thing, talk to the manager. They will frequently comp the meal, and besides, they can't make improvements if they don't know about the issues. If they don't care, don't go back.
 

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So in my business if I advertise/sell a product for the stated price of $100 but then present a bill to the customer for $122, wouldn't that make me a crook?
Pretending you are a good person for offering a product at one price but charging a different price - you are simply a lying cheat.
If you really feel strongly that your employees deserve better (good on you), raise your prices and be honest with your customers.
I agree with the principle, but not with the implementation. Vote with your feet regarding dishonest business practices.
 

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But they are adding a 22% surcharge to all orders. They say this way everyone will get a fair portion, including the back of house staff. This is crazy to me. What if the food is bad? What is the service is Bad. When did tipping become expected everywhere. Go to pick up a carry out and they want a tip, now they are just going to add an additional 22% onto your order and you have no say in it? I hope this is a trend that doesn't catch on.

Then don't eat out or don't go to these particular restaurants. It's not just Portland, there are places here in Newport that do it. And I can tell you that April thru October, you can't eat at them without a 3 hour wait or reservation far in advance. Don't like it, don't go.
 

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So in my business if I advertise/sell a product for the stated price of $100 but then present a bill to the customer for $122, wouldn't that make me a crook?
Pretending you are a good person for offering a product at one price but charging a different price - you are simply a lying cheat.
If you really feel strongly that your employees deserve better (good on you), raise your prices and be honest with your customers.
I agree with the principle, but not with the implementation.
They post it in numerous places throughout the facility that you will see an upcharge on your final bill. It's not a surprise.
 

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People still eat out? I'm a decent cook. I've learned to appreciate the comfort of my home and yard.
This is my feeling as well. The price of restaurant food nowadays is very high. As my ex-mother-in-law from Thailand used to say in Thai..."Save the money". Too bad her daughter did not listen.
 

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I have never liked tipping (too big a topic to expand on) and as stated in some places it is considered "almost" an insult. Like parts of Europe, New Zeland, and others. But, also in some places you pay extra for a napkin, a glass of water, or bread with the meal. Where tipping is expected I understand why restaurants automatically add a tip requirement for large groups but I don't like it for a small group or individuals. If they want me to return they should provide good service as well as good food....or products. As far as employee income; if they want good employees they have to pay them and that is their problem not mine.
 

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It's a free market, they are free to do what they want.

I will say, I've eaten at this restaurant twice and it is phenomenal. The service, food, atmosphere was all top notch. If I didn't live 300 miles away I might go more often.
 

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If you are confident in the value of your product or service, raise the stated prices to reflect the value - and your customers will let you know if they see the value by continuing to purchase your product/service. But playing these games of putting false pricing on your paperwork and rationalizing upcharges by posting signs means you really don't believe in the value of your product. Expecting your customer to do math and read your signs - just playing games.

Be honest with yourself and your customer - say what you are going to do (charge) and then perform beyond expectations. It works for every business.

I will never return to a business that is dishonest like this. No matter how great their product /service is.
 

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The thing is...the service is as good if not better than you get at a tipping restaurant.

The demand for these jobs is very high and people want to keep them, so they work harder for you.

This is from El Gaucho website - interesting

What are the benefits of a service charge model?
Employees:
Our team is made up of professionals who have made hospitality their career -they have families, are homeowners, and active members of their community. The service charge model, combined with the ability for guests to leave additional gratuity for excellent service, ensures a sustainable model for our team to continue to receive excellent compensation and benefits. For example, our servers are paid a 13% commission plus state minimum wage which results in $40-60 hourly pay plus benefits.
The Company: El Gaucho has been successfully using a service charge model for Private Dining business for over 20 years, therefore we already have extensive experience with this model. The advantage is that we pay the state minimum wage and then a commission, rather than the city of Seattle’s minimum wage. The delta between the two saves money for our company, while ensuring that our employees continue to do well.
The Government: Because taxes are paid on the service charge, state and local government benefits from increased tax revenue. $15 million gross sales creates $3 million in service charges and $300K goes to Washington State sales tax and $60K goes to B&O taxes.
 
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