this post was submitted on 12 Nov 2023
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Mildly Infuriating
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It's this (the service charge) or they raise prices across the menu. Some people prefer this, some people prefer the added cost baked in.
Personally I think the service charge is a little deceptive because you are hit with an unexpected expense at the end of your meal. Even if they're very up front about the charge most people won't be automatically calculating the 18% extra on whatever they're spending, they're just going to look at the price on the menu.
Citation needed.
I think those people own restaurants
They have raise prices across the menu, by 18% to be more specific.
Segregating the price increase as "service fee" is only so that they can deceitfully advertise their prices a lower than they really are, also known as a Bait & Switch, a form of Consumer Fraud.
Not quite. A $100 meal would have a routine 15%, $15 tip. Increase the price 18%, and a $118 meal would have an expected 15%, $17.70 tip.
Look at the tip calculations on this receipt: they are based on the price of the meal before the service fee. If this restaurant sold a $118 meal, it's expected 15% tip would be $15, not $17.70.
They are stealing $2.70 from staff on every $100 check.
Look at the calculated tips. They are based on $95.60, the price of the meal before the 18% service charge.
If they raise their prices by 18%, they would have to raise their tip calculation by 18%.
They are stiffing their employees.