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mkayahara

Rethinking tipping culture

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Posted (edited)

I'm back in my office today and reviewed the receipt.  You will see, the Kitchen Appreciation Charge is actually subject to sales tax.  Taxing a surcharge seems, frankly, questionable. 

IMG_1811.JPG.29b698dc9032e700c00469be47e40a06.JPG

 

 

And -- since most customers would tip on either the total or subtotal -- which includes the surcharge -- wouldn't the disparity in compensation be replicated -- bigger basis for tips for the FOH?  


Edited by SLB (log)
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50 minutes ago, SLB said:

I'm back in my office today and reviewed the receipt.  You will see, the Kitchen Appreciation Charge is actually subject to sales tax.  Taxing a surcharge seems, frankly, questionable. 

IMG_1811.JPG.29b698dc9032e700c00469be47e40a06.JPG

 

 

And -- since most customers would tip on either the total or subtotal -- which includes the surcharge -- wouldn't the disparity in compensation be replicated -- bigger basis for tips for the FOH?  

 

 

 As far as I can see the 3% has to be considered profit for the restaurant. They'd better pay income tax on it.

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But can they collect sales tax on it?  I was talking about sales tax.

 

However -- this is going off topic.

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35 minutes ago, SLB said:

But can they collect sales tax on it?  I was talking about sales tax.

 

However -- this is going off topic.

They have to, I think.  No matter what they call it, is is part of the cost of the meal.

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Having done the math, I now think the MA meal tax was not applied to the surcharge here, so that concern is allayed.  

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This does not seem well thought out. Seems to me that it will only create ill will on the part of the customer, being hit with another surcharge. 

 

I don't understand why they don't give the BOH a raise, and the raise prices accordingly. If they want some kind of credit for paying a decent wage, they could make note of it on the menu. 

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1 hour ago, chileheadmike said:

This does not seem well thought out. Seems to me that it will only create ill will on the part of the customer, being hit with another surcharge. 

 

I don't understand why they don't give the BOH a raise, and the raise prices accordingly. If they want some kind of credit for paying a decent wage, they could make note of it on the menu. 

 

That would be too much like...sensible. 

 

I'm sure part of the reason is to counter the PR flack that comes with their steak being two bucks more than Joe's down the street. Once you're in and seated, you're more likely, I suppose, to suck it up and go ahead and order, if you happen to read the upcharge notice. And I suspect many people don't scrutinize their bills beyond looking at the total and calculating a tip.

 

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