When the house rounds the check

[Suzanne F]

I recently had a lovely breakfast at Balthazar (in NYC). When I got the check, I noticed that my bill which clearly totaled $19.28 had as the payment amount, $19.30 (this was before I added a tip.) I asked the server if she got the extra, and she laughed and said, of course not. Eventually a manager came over and told me that their computer rounds the check totals, sometimes up and sometimes down. So for the house it evens out, in the end. Although not for the one-time customer.

Has anyone every come up against this elsewhere? What do you think about it? And if YOU are the house (this one's for you, Glenn), does it really work out, or does it give you constant headaches?

[sammy]

Dominick's on Arthur Avenue has a completely different method of rounding off the check. If they like you, the rounded amount is less than if they dont like you.

[=Mark]

That's a new one on me, utilizing a computer based system to not deal with exact figures...

[hollywood]

I think it's just the hassle of dealing with pennies. They could charge you the right amount and bring around Apu's Give-a-Penny, Take-a-Penny bowl, I guess. Seriously, servers here routinely bring back change rounded in the customer's favor to the nearest nickel or dime (if you pay cash).

[sammy]

I think it's just the hassle of dealing with pennies.  They could charge you the right amount and bring around Apu's Give-a-Penny, Take-a-Penny bowl, I guess.  Seriously, servers here routinely bring back change rounded in the customer's favor to the nearest nickel or dime (if you pay cash).

That's the thing. I bet the vast majority of customers dining at Balthazar are using plastic. Where's the logic?

[sherribabee]

I recently had a lovely breakfast at Balthazar (in NYC).  When I got the check, I noticed that my bill which clearly totaled $19.28 had as the payment amount, $19.30 (this was before I added a tip.)

I'm confused as to why they would round up as opposed to down. If it's a matter of making it easier/more convenient for the house, then they should certainly round in favor of the customer.

Boo Balthazar!

[Suzanne F]

Ah, but rounding in this case takes it to the closest 5¢ -- which, since 8 is only 2 down from 10, but 3 up from 5, means that it will push up.

Have I thoroughly confused you?

[fresco]

There are sporadic efforts in Canada to abolish the penny, because it is literally more trouble than it is worth--among other things, it costs a bundle to air freight pennies to banks in remote northern parts of the country. Doing away with pennies, of course, is the same as rounding.

It's also interesting that one often sees pennies on the sidewalks or streets, presumably because people feel that it is not worth the effort to pick them up, or they worry about being seen doing so.

Edited October 3, 2003 by fresco (log)

[sherribabee]

Ah, but rounding in this case takes it to the closest 5¢ -- which, since 8 is only 2 down from 10, but 3 up from 5, means that it will push up.

Have I thoroughly confused you?

No you haven't confused me at all.

I just think that if the house is going to practice rounding for thier own convenince, they should ALWAYS round down. If my bill is $29.99, I'd prefer to see it rounded down to $29.95 or $29.90 instead of up to $30.

I think it's a better business practice to throw a few cents at the customer rather than steal a few cents from them. Especially if the restaurant is rounding as a matter of their own bookkeeping convenience.

[tommy]

Eventually a manager came over and told me that their computer rounds the check totals, sometimes up and sometimes down.

yes of course. the computer rounds the checks.

did you kick this manager in the balls while you had the chance? he's full of shit. and if he's not, he needs a new "computer".

[elyse]

I would have left the $19.28.

[Al_Dente]

You could report them to the Visa Mastercard associations. They could yank his merchant account.

It's a small matter, but on priciple I think it's BS.

[glenn]

Hmmmm, I was always curious how places handle change. I told the servers to round down to the nearest dollar for anything under 95 cents when a customer pays cash (exact amount for credit cards). The waiters make their own change and the bartenders start off with banks, which only consists of $2 in quarters, and the rest singles, fives and tens. I don't know whether the system is followed or not, but the total cash is never more then a few dollars short, unless a certain moron manager closes (THE GENIUS). How do all you sunday quarterbacks suggest it be handled? Forget about making change more for denominations less than a quarter, too much of a hassle.

[Suzanne F]

Tommy: the manager I spoke with had no balls. Female. But yes, she looked as though she knew she was BSing.

Al Dente: what a good idea! Truly. Do you know how I locate such a group?

To all: Since this was at Balthazar, I wonder if it happens at Pastis, and other restaurants under the same ownership??

[glenn]

Al Dente: what a good idea!  Truly.  Do you know how I locate such a group?

mc int'l - 800-862-2181

visa int'l - 800-336-8472

[hollywood]

That's a new one on me, utilizing a computer based system to not deal with exact figures...

Obviously, you don't understand fuzzy logic.

[KatieLoeb]

It's obvious to me why they're doing it. They're trying to get back a little bit of the fees they are charged by the credit card companies. Every little bit counts...

This is also why some restaurants take a percentage of those fees out of the servers tips.

[wesza]

The percentage that Restaurants sometimes take out of servers tips is only the amount of your gross charge made by the Credit Card Company for the total amount of any Guest Check that INCLUDES YOUR GRATUITY. There really no reson for them to absorb costs that they receive no benefit for accomodating customers. I always take this into consideration when I add a gratuity to my charge card. They also have the additional expense of allocating all gratuities received in this manner to the servers account. Some restaurants even go further, by braking down all credit card charges into the percentages that servers allocate to Bartenders, Busboys, and sometimes kitchen. This is provided at the expensive of business to meet the IRS criteria. Please keep this in mind when you utilize your charge card for any extras.

In rounding out pennies, this is something that's been done in many places for years. Most often as a customer convienience. It's generally set up on computers to customers advantage. But started during the penny shortages, prior to general computerization and has continued. Irwin

[Schneier]

Eventually a manager came over and told me that their computer rounds the check totals, sometimes up and sometimes down.

yes of course. the computer rounds the checks.

did you kick this manager in the balls while you had the chance? he's full of shit. and if he's not, he needs a new "computer".

I agree with you. That's absolute nonsense. The whole point of having a computer is that the bill is accurate to the nanopenny, and no rounding is necessary.

I can't think of a reason why the check didn't add up properly. Honestly, I never total computer generated bills--I just assume the computer can add.

Maybe I should start paying attention.

Bruce

[suzilightning]

being the psycho librarian bitch that i am i always look at the check and add it quickly in my head. if i am using a card i NEVER include the tip. i always pay that in cash in case they have to share it out plus - though i pay my credit card bill in toto every month - why would i want to pay a percentage on a tip if i had to ?

[tommy]

How do all you sunday quarterbacks suggest it be handled?  Forget about making change more for denominations less than a quarter, too much of a hassle.

what, if we're not in the restaurant industry we're "sunday morning quarterbacks"? i'm missing the point.

i suggest it be handled the following way: don't over-charge your customers.

[Jinmyo]

There are sporadic efforts in Canada to abolish the penny, because it is literally more trouble than it is worth--among other things, it costs a bundle to air freight pennies to banks in remote northern parts of the country. Doing away with pennies, of course, is the same as rounding.

It's also interesting that one often sees pennies on the sidewalks or streets, presumably because people feel that it is not worth the effort to pick them up, or they worry about being seen doing so. 

We don't even have bills for $1 or $2, just coins.

One can empty one's pockets and have $40 in change.

I said, "In change."

I just always drop pennies, nickles, dimes into whatever slotted charity box is by the cashier. I keep quarters and loonies for parking meters.

I wouldn't stoop to pick up a loonie ($1 coin) unless I was sweeping and it wouldn't move with the rest of the dross.

[tommy]

why would i want to pay a percentage on a tip if i had to ?

why would you want to pay interest on *any* money if you don't have to? perhaps along with paying the tip in cash, one might also pay a max of 50 bucks on the card for dinner and pay the rest in cash? where is the line drawn? although now i think i'm off topic.

[tommy]

Doing away with pennies, of course, is the same as rounding.

i just don't see that. price adjustment, of course, would happen. however, it would not necessarily be "up", and more than likely the new price would be posted, and you'd pay what you thought you were going to pay, rather than 2/100's of a dollar more.

Edited October 4, 2003 by tommy (log)

[glenn]

It was meant to be facetious, no offense meant. But no one has come up with a suggestion, just vague generalities, and stuff like "don't overcharge your customers". If you had an upscale place (as opposed to a diner where everyone pays a cashier), how would you handle the matter of coins? As I stated, our place chooses to take a loss and round the change down to the dollar so as not to have to deal with coins. In the scheme of things, it's no big deal and doesn't add up to much. I posed a legitimate quagmire, so how 'bout giving it some thought!