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RE: The Emerging Trend Of Tip Inflation

in #money7 years ago

Who says the owner has that money to give?! Your assumption is that all restaurant owners have a Scrooge McDuck vault of money. Imagine you have 5 servers at $3 who work 8 hours a day. What do you want to pay them? $13 sounds like a good number. $10 extra dollars an hour x 5 employees x 40 hours a week x 52 weeks in a year=? I know what it equals. It equals that restaurant shutting down and you not having the luxury of choosing that restaurant to sit down and eat dinner at and deciding if you want to tip or not in the first place.
I have seen nice restaurants sell $3 million a year in food and drinks and make $12k a year in profit after liabilities like rent and labor. In this scenario, you want to add another $104,000 to the balance sheet in the form of higher wagers and expect them to stay open? The math just isn't there. Please bring an educated comment telling me why I am wrong if you are going to reply. What you replied was not helpful or informing and that is what this community is about.

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