AAFrequentFlyer

And what would stop any employee from calling IRS and reporting the discrepency? Annonymous calls are very welcomed by the IRS.

Actually with the new system it will become almost impossible for the restaurant to skim off the top of anything.

Patrick

I really like the idea that the restaurant should start paying 20% to the waiters and NOT raise their prices, but still eliminate the tipping. What kind of dream world do some of you live in?

Nobody said or even suggested this is a move to save the customer money, yet some of you seem to want your cake and eat it too -- save the 20% tip altogether and let the restaurant pay it directly to their employees without raising prices. Sure, that is a good business policy -- NOT.

hdm

Of course the restaurant can't just give their waiters a 20% raise in salary without suffering financial consequences. I don't think anyone suggested that (especially me). But somehow restaurants have gotten away with paying their staff slave wages and expecting the customers to pick up the rest. Other business owners are required by law to pay their employees a reasonable rate of pay but somehow restaurants aren't included in these labour laws. I'd like the restaurant to pay reasonable salaries, raise their prices moderately to cover some of this cost and let the rest come out of their profits. And undo tipping. And please don't tell me that it would put restaurants out of business -- other small-business owners do this all the time because they don't have the option of legally underpaying their staff. Waitstaff would be expected to give good service because, guess what? -- that's what they're hired to do.

Patrick

Exactly my point, hdm. That is what Per Se is suggesting. They are raising their prices by the same amount that people would normally pay extra, and then they can pay their employees decent salaries. If they raised their prices any less than 20% and still discontinued tipping, then it shouldn't take a rocket scientist to figure out that they would be REDUCING their profits. And since they are already busier than any restaurant needs to be (try to get a reservation in less than a month or two and you'll agree) then why in heaven's name would they do ANYTHING to reduce their profits?

hdm

Of course you're right that they won't do anything to reduce their profits. Why should they when they're the hot spot du jour? It will be interesting to see if this new policy affects their business. Clearly, it can't get any better so there's only one direction for it to go when the next new hot restaurant captures the hearts of the foodies. Posh restaurants come and go all the time.

I guess what I really want is for the law to set the same minimum wage standards for all employers.