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spatulacity42•

Are people that stupid, or do they just not tip? Trading tipping for an 18% price increase would make eating out cheaper for me. I always tip 20% or a little more.

Was the idiot who's socks took off unable to read the menu? Was paying exactly what was listed, plus tax, a huge surprise? He liked it better when the menu said the tasting was $65 but then he got to either pay the extra separately or stiff the staff out of fair wages?

12
redcoat777•

This is in the subconscious mind. Just like you would have to be an idiot to not realize that 19.99 is effectively the same as 20 it still processes differently in our pea brains.

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graileron peninsula•

In the article, the owner cites lack of revenue overall and made a connection to higher prices and correspondingly lower consumption. It's not about tipping per se, it's about less revenue.

The owner also attempted to include a service charge, but that's illegal in Maine (the only state to do so) except in cases of banquets and special events.

Instead, they raised their prices to cover. They also saw a drop in business during part of that time. Whether that's causation or correlation is perhaps the debate.

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ONSES•

I got the feeling that some customers still felt like they 'ought' to tip - and as neither place banned tipping explicitly, it generally ended up making people feel a uncomfortable.

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KYazut•

I don't want to call people "stupid", but the psychology of marketing and pricing makes this a non-shocker for me. When you read a menu, your brain undergoes a decision-making process based on the price you read and does not really factor taxes or tip very well.

The restaurant would very likely have been better off if they went with a mandatory 18% tip policy and left their pricing structure alone otherwise.

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hike_me•

I'd have no problem paying 18% more in a restaurant if I didn't have to tip. I don't understand why that is a problem. This is the norm in many countries.

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[deleted]•

[deleted]

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