It’s kinda the opposite. Customers prefer places that pay very little. They did studies with consumers and told them one menu pays a living wage, but when they say the slight increase in prices they choose the other option.
It’s not the employer, it’s largely the customers that continue this trend
Employers can make the menu the same price by just limiting the profits. But of course, they present that option as impossible. “It’s either a living wage or an expensive menu”, and let the peasants fight over it.
And yet this issue doesn’t exist almost anywhere else except on USA, even when meals are cheaper.
Restaurant margins are notoriously thin. The average restaurant makes around a 3% to 5% profit margin. There are very few restaurants in America that could just triple their staffing costs and not raise prices.
Again this isn’t what the study showed. It shows the consumer in America will largely pick the cheaper menu then if everything is the same but the staff get paid more. The consumer is perpetuating this problem.
The only way to stop low pay and the system is to ask agree to stop tipping.
You are ignoring what I said. You say people don’t like price increases. I say price increases are not necessary. You say people still don’t like price increases.
I’ll have to find it, but the study was between two different menus. One with tipping, and one with the tip already baked in so the staff for a higher salary but trying want required. The final price for each menu was the same (if you tipped).
Yeah, this is unfortunately why tipping culture can’t be phased out by individual restaurateurs trying to create change. Consumers would rather pay $20 for a meal and tip $4 than pay $22 upfront and not tip. I imagine it’s the same psychological principle that makes people think paying $99.99 is significantly better than $100. The only solution is eliminating the tipped minimum wage all together so that everyone gets the same minimum wage (also, increase the minimum wage at least 200% while you’re at it).
That being said, it’s not just the customers. Whenever a state is about to eliminate the tipped wage, the National Restaurant Association (yes, another evil NRA) spends millions trying to kill it. It happened here in MA a few years ago; they convinced both servers and customers to vote down a referendum to eliminate the tipped minimum wage, even though both of those groups were just subsidizing the restaurant owners.
If you can’t afford to pay your employees a living wage, do better.
It’s kinda the opposite. Customers prefer places that pay very little. They did studies with consumers and told them one menu pays a living wage, but when they say the slight increase in prices they choose the other option.
It’s not the employer, it’s largely the customers that continue this trend
Employers can make the menu the same price by just limiting the profits. But of course, they present that option as impossible. “It’s either a living wage or an expensive menu”, and let the peasants fight over it.
And yet this issue doesn’t exist almost anywhere else except on USA, even when meals are cheaper.
Restaurant margins are notoriously thin. The average restaurant makes around a 3% to 5% profit margin. There are very few restaurants in America that could just triple their staffing costs and not raise prices.
Again this isn’t what the study showed. It shows the consumer in America will largely pick the cheaper menu then if everything is the same but the staff get paid more. The consumer is perpetuating this problem.
The only way to stop low pay and the system is to ask agree to stop tipping.
You are ignoring what I said. You say people don’t like price increases. I say price increases are not necessary. You say people still don’t like price increases.
I never said people didn’t like price increases
I’ll have to find it, but the study was between two different menus. One with tipping, and one with the tip already baked in so the staff for a higher salary but trying want required. The final price for each menu was the same (if you tipped).
Customer preferred to tipping menu.
Do you happen to have said study?
Yeah, this is unfortunately why tipping culture can’t be phased out by individual restaurateurs trying to create change. Consumers would rather pay $20 for a meal and tip $4 than pay $22 upfront and not tip. I imagine it’s the same psychological principle that makes people think paying $99.99 is significantly better than $100. The only solution is eliminating the tipped minimum wage all together so that everyone gets the same minimum wage (also, increase the minimum wage at least 200% while you’re at it).
That being said, it’s not just the customers. Whenever a state is about to eliminate the tipped wage, the National Restaurant Association (yes, another evil NRA) spends millions trying to kill it. It happened here in MA a few years ago; they convinced both servers and customers to vote down a referendum to eliminate the tipped minimum wage, even though both of those groups were just subsidizing the restaurant owners.
Of course given the choice, customers prefer to pay less for the same thing. That’s basic economics. It kind of needs to be all or nothing.
I voted to end tip wages, but of course I’ll go to the place that saves me money. This is why ending tip wages for all has to be the starting point
Got a link to these studies? Who is “they?”