High End Restaurants are Adding a Service Charge Beyond the Gratuity

We booked a table at Red Lantern (Luke Nguyen) a few years ago for a group of friends who are all paying individually in cash at the end of the night into the middle of the table once the cheque has been divided by the 8 of us.

The menu was $80.00 a head. We all had a couple of drinks. We paid $125 each.

I’m pretty good at math so I was mildly confused.
What I found was they added 10% for groups of 8 or more. Basically another person could have eaten the deg for that surcharge.

I don’t get it? This was a Wednesday night. They weren’t busy. They basically punished us for daring to patronize their establishment.

I won’t go back.

Shame - I've watched several Luke Nguyen's series on TV and he really seems like a great chef. Are you going to leave some feedback?
 
Cash v card.

A lot of small businesses and a lot of the general public here are starting to get dirty on the cash thing. There were signs all over the hippy village of Kuranda in far north QLD saying “we accept cash”. “Keep cash alive”.

Last night I paid for a masala chai with cash and had a funny exchange with the proprietor about “dirty dirty cash”.

My favourite gelato place doesn’t take cash anymore. Card or pay via their app.

Pisses me off.

Technically, The US dollar is legal tender for any debt (purchase). But, some businesses don't take cash, for multiple reasons. For some, it is because they are open late, and don't want to get robbed. Having a bunch of cash on hand makes you a target. I think a lot of businesses would rather deal in credit or debit cards, because of efficiency.

I pay for things almost exclusively with a credit card. I don't like to carry a bunch of cash, and end the day with a pocket full of change. Plus, I have a record of every single purchase I make, without having to keep a bunch of paper receipts.

CD
 
But, some businesses don't take cash, for multiple reasons.
MrsT doesn’t take cash, wouldn’t really be able to, as clients aren’t really paying her, they’re paying whatever supplier she’s working with, like Trafalgar Tours or Delta Vacations or Disney. She doesn’t get her cut until they actually travel.

She’s been self-employed since 2013, and she’s had one couple ask to pay cash in all that time.

I hate dealing with cash and there are still a few places in town that are cash only - I don’t go there, and if I’m charged a credit card processing fee at the point of sale, I won’t go there, either.

It’s the 21st century, just take cards already, adjust your prices accordingly, and leave it at that. Honestly, I thought we’d be paying with thought waves or something by now. :laugh:
 
MrsT doesn’t take cash, wouldn’t really be able to, as clients aren’t really paying her, they’re paying whatever supplier she’s working with, like Trafalgar Tours or Delta Vacations or Disney. She doesn’t get her cut until they actually travel.

She’s been self-employed since 2013, and she’s had one couple ask to pay cash in all that time.

I hate dealing with cash and there are still a few places in town that are cash only - I don’t go there, and if I’m charged a credit card processing fee at the point of sale, I won’t go there, either.

It’s the 21st century, just take cards already, adjust your prices accordingly, and leave it at that. Honestly, I thought we’d be paying with thought waves or something by now. :laugh:

One of the (many) things I don't like about Houston is that the gas stations there mostly charge five cents a gallon extra for credit cards.

CD
 
They do that in the US. Servers are taxed 8% of their sales in expectation they are making that much in tips on each bill. If the tip is on a credit card and they get a higher tip, they get taxed on the full amount of the tip. If someone stiffs them, however, they still get taxed the 8% on the bill amount.

That amout shocked me. Here minimum is approximately $25 hr. No tipping.

Russ
 
That amout shocked me. Here minimum is approximately $25 hr. No tipping.

Russ

Keep in mind, the only people in the US who don't pay Federal income taxes are the very poor, or the very wealthy. So, if you live in poverty, no taxes. If you are a billionaire, no taxes. One political party wants to fix that, by making a minimum tax so that poor people pay their fair share. The other party wants a minimum tax for billionaires, so that wealthy people pay their fair share. 🤷‍♂️

CD
 
Keep in mind, the only people in the US who don't pay Federal income taxes are the very poor, or the very wealthy. So, if you live in poverty, no taxes. If you are a billionaire, no taxes. One political party wants to fix that, by making a minimum tax so that poor people pay their fair share. The other party wants a minimum tax for billionaires, so that wealthy people pay their fair share. 🤷‍♂️

CD

When I was in business my accountant ex ird. Moved money around in a trust for me. I paid company tax but it was minimal. But we paid lot of gst. 15 % good and services tax. Everyone Is taxed once you start work.

Russ
 
That amout shocked me. Here minimum is approximately $25 hr. No tipping.

Russ
Yeah, minimum wage for servers in many states is about $5 per hour I think. In the 1980s it was $2.13 ph when I was a server/bartender. Only back then most everyone paid tabs in cash and it wasn't tracked.
 
Yeah, minimum wage for servers in many states is about $5 per hour I think. In the 1980s it was $2.13 ph when I was a server/bartender. Only back then most everyone paid tabs in cash and it wasn't tracked.

It is still $2.13 an hour in Texas. That is the National minimum. Texas does not have its own minimum wage for anyone. The only reason low-income workers have any minimum wage here is because of the Federal minimum wage. The Texas legislature and Governor don't even like that Texas has to obey the Federal minimum.

CD
 
Not only tax having to be paid on tips, many places, especially high end places, require servers to share tips with the busboy and kitchen staff. So, the server could actually end up having to pay for the "privilege" of serving you.
 
It is still $2.13 an hour in Texas. That is the National minimum. Texas does not have its own minimum wage for anyone. The only reason low-income workers have any minimum wage here is because of the Federal minimum wage. The Texas legislature and Governor don't even like that Texas has to obey the Federal minimum.

CD
The southern states are still not very advanced or forward thinking. In Ohio it's double that. Not like the Midwest can boast about much else thats forward thinking, lol.
 
Not only tax having to be paid on tips, many places, especially high end places, require servers to share tips with the busboy and kitchen staff. So, the server could actually end up having to pay for the "privilege" of serving you.
Yeah we had to tip 3% to bussers and 5% to bartenders when I was a server.
 
MrsT doesn’t take cash, wouldn’t really be able to, as clients aren’t really paying her, they’re paying whatever supplier she’s working with, like Trafalgar Tours or Delta Vacations or Disney. She doesn’t get her cut until they actually travel.

She’s been self-employed since 2013, and she’s had one couple ask to pay cash in all that time.

I hate dealing with cash and there are still a few places in town that are cash only - I don’t go there, and if I’m charged a credit card processing fee at the point of sale, I won’t go there, either.

It’s the 21st century, just take cards already, adjust your prices accordingly, and leave it at that. Honestly, I thought we’d be paying with thought waves or something by now. :laugh:
I end up paying with cash for a lot of things. Diners, I prefer to at least tip in cash - the bill that comes to $12 has a server working just as hard as the bill that comes to $50. And he or she will be taxed for the amount on the credit card - at least with a cash tip the person probably pays 15-18 % for the assumed tip amount. And I always overtip at diners or anyplace where the establishment isn't getting much money to serve me. Because most of their waitstaff income is from tips.

It is also rather nice to not be tracked every where I go. Mind you, I still do make heavy use of the credit cards.

There are places in town here that are cash only - or wrkers - my snow plow guy takes cash or checks. I'd have to wait until May to get out of my driveway if I insisted he or anyone in town take credit cards - the driveway is nearly 0.2 miles long. Same with other service individuals whom I might hire for whatever purpose. I also like patronizing local farmer's markets, and not all vendors are set up for credit cards. I plan for that.

I seriously would not return to a place that added a "service charge" to a meal. I do understand gratuities added to parties of six or eight or more - but if it is just two or three of us - they ain't ever seeing me again. Don't care how "good" the food is. Add the cost into the prices of the actual dishes, on the menu!
 
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