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Restaurants - please ask who gets the tips

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  • Interesting debate here... I do like to leave a tip when I've had good service, just a few pounds or round up to the nearest fiver. I think it's nice to have the option and not be culturally obliged. I went to Mexico and they were receiving big tips from the Americans, but sometimes rude, demanding behaviour to go with it. From the Brits they were getting smaller tips and thank your (genuine). I know some of the staff preferred the latter.

    My point here is that I know the chain owner lives in a very affluent area, and good on him for building a successful business, but I want my tip to go towards the staff who produced my nice meal, I'm not paying extra to heat their swimming pool, or to buy a better car. If they up the prices, that's fine, at least it's transparent, but the current system of 100% to owners is unacceptable and misleading.
  • I find paying by debit card makes it easier to avoid tipping anyway.

    I get my pay, pay my bills, pay maintenance for my children, treat my kids, the little I have left is mine to enjoy,not give away to someone's who's getting paid to do s job.
  • theoretica
    theoretica Posts: 12,691 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Interesting that in all this debate no-one has mentioned one of my main financial gripes about the tip system.

    Restaurant meals are subject to VAT. Tips do not get VAT charged, and sometimes no National Insurance is due. So by making up some of the staff earnings through tips, rather than a higher price for the goods and all staff earnings being wages, this system is acting as a hidden tax break for the restaurant trade. Personally I think any tax breaks of this sort should be more explicit. Replacing cash tips with higher wages would also reduce the temptation for a portion of these to be pocketed without paying the correct income tax.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • theoretica wrote: »
    Interesting that in all this debate no-one has mentioned one of my main financial gripes about the tip system.

    Restaurant meals are subject to VAT. Tips do not get VAT charged, and sometimes no National Insurance is due. So by making up some of the staff earnings through tips, rather than a higher price for the goods and all staff earnings being wages, this system is acting as a hidden tax break for the restaurant trade. Personally I think any tax breaks of this sort should be more explicit. Replacing cash tips with higher wages would also reduce the temptation for a portion of these to be pocketed without paying the correct income tax.

    Very interesting, I wonder whether they're not paying VAT on the income from service charges. It's all a little dodgy TBH....
  • theoretica
    theoretica Posts: 12,691 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Very interesting, I wonder whether they're not paying VAT on the income from service charges. It's all a little dodgy TBH....

    Google tells me VAT is due on compulsory service charges, but not on voluntary ones.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • theoretica wrote: »
    Google tells me VAT is due on compulsory service charges, but not on voluntary ones.

    Good way of getting that extra but of income then. This is quite a 'cheap and cheerful' chain ( a family of 4 can comfortably eat for under £25 including starters in happy hours). The volume of people they get through due to the price, who then probably add a tip because it was so cheap, means they must be making a bit extra this way!
  • Marvel1
    Marvel1 Posts: 7,466 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 27 August 2016 at 8:35PM
    JReacher1 wrote: »
    If people didn't tip in restaurants then the price of food would rise as the restaurants would need to pay staff more to perform the role of waiter.

    If you can afford to eat out you can afford to pay 10% tip to the person who waits on you.

    I accept many people don't tip and hide behind the age old argument of "I work in a shop and I don't get a tip" but that's really just how they excuse being tight.

    Do you tip retail staff? The hotel receptionist? Mortgage/loan/bank adviser? Dentist? Nurses? Care workers (when older and in need)? Postman/woman? The delivery driver?
    JReacher1 wrote: »
    10% is the accepted amount for decent service. For outstanding service I will give 20% for poor service I will give either less than 10% or sometimes nothing (if the service is very poor).
    JReacher1 wrote: »
    You have to remember the tips also go to people in the kitchen as well e.g trained cooks etc.
    coo

    So very poor service from the waiter/waitress, you would give nothing to the chefs/people who wash the dishes?
  • Robisere
    Robisere Posts: 3,237 Forumite
    Ninth Anniversary 1,000 Posts Photogenic Combo Breaker
    My granddaughter works in a local restaurant, management have a policy of alternating staff between kitchen and tables. She has studied and qualified in Hospitality and catering and wants to be a chef full-time, but had to start at the bottom, first minor cooking, cleaning and washing-up. Later she began cooking and preparing food, but still has to wait at tables on an alternating basis, with other staff. The husband and wife management are very good and treat staff like family. Gd says that all tips are placed into an open container and a total taken at the end of the day, to be recorded. at the end of the week the money is shared between all staff. As they alternate between work, everyone is considered to have earned a share. I think this must be a very rare establishment.

    Anyone who thinks that waiting tables is not hard work, should try it for a few hours. Irritating, sometimes abusive customers, trying to smile whilst being either leered at or abused. Kitchen work in summer is hot and often dirty work.

    I look at tipping from the point of view that someone who is getting a relatively low wage, is saving me preparing a meal and doing the clearing-up and washing-up afterwards. Plus the fact that I would never be able to make a meal as good as that myself.
    I think this job really needs
    a much bigger hammer.
  • JReacher1
    JReacher1 Posts: 4,663 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    cjdavies wrote: »
    So very poor service from the waiter/waitress, you would give nothing to the chefs/people who wash the dishes?

    Yes that is right. I unfortunately will have to penalise hard working people due to my dissatisfaction with the front of house person. This has happened very rarely (maybe twice in my life)

    On your profession list I tip some of them but not all. It's all about what is the social norm.
  • Kim_kim
    Kim_kim Posts: 3,726 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    Interesting debate here... I do like to leave a tip when I've had good service, just a few pounds or round up to the nearest fiver. I think it's nice to have the option and not be culturally obliged. I went to Mexico and they were receiving big tips from the Americans, but sometimes rude, demanding behaviour to go with it. From the Brits they were getting smaller tips and thank your (genuine). I know some of the staff preferred the latter..

    I really doubt they did & I used to be a waitress - it's poorly paid & nice customers wouldn't have paid my electric bill or my daughters nursery, money did.
    Besides Mexico is a poor country & they don't have the minimum wage & living wage like we do - tipping is very much a part of the culture of poor countries. When I was in Mexico I tipped like a yank (everyone), & got good arrive.
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