Went to a restaurant in LA today and when I got the check I noticed that it was a bit higher than it should be. Then I noticed this 18% service charge. So… We, as customers, need to help pay for their servers instead of the owners paying their servers a living wage. And on top of that they have suggested tip. I called bs on this. I will bet you that the servers do not see a dime of this 18% service charge. [deleted a word so it wasn’t a grammatical horror to read]
The alternative is that they just jack up the menu prices to accomplish the same thing. This is just the equivalent of pricing things at $19.99 because people don’t understand that really means $20 which sounds like a lot more money.
So let’s say you checkout at the grocery store tomorrow and your $100 of groceries has a $20 “employee wellness” fee tacked on. You see that and pricing an item 1 penny below a round number as the same thing. Really?
No, you’d leave the store having paid $120 for groceries with no wellness fee tacked on.
Did that make sense in your head?
Yes, and in reality. When you charge more per item for goods and services so that healthcare is included, they cost more.
A red-herring response if I’ve ever seen one.
This has literally nothing to do with the tactic of hiding additional fees so customers don’t see them instead of just increasing prices, or the difference between pricing something a cent below a round number and adding a wellness fee at checkout.
I try to avoid playing pigeon chess, but it seems that’s what I’ve been doing.
Yeah, please if you’re going to charge me 40 bucks for a salad just put 40 bucks on the menu. Or 39.99 If you must. I greatly prefer that over listing the salad as $30 on the menu, only get blindsided by a separate $10 service charge on the bill. Matter of fact can we just go to putting the entire cost of the item on the menu?
Everything should be on the wheel and out the door pricing. Doing any other way is absolute bullshit.
You’ll get no disagreement from me!
No, because the difference of seeing a $19.99 price versus a $20.00 price is that I see it up front. That’s more honest than tacking on a $21.50 hidden fee after the fact.