Only seven states currently bar “subminimum” pay for tipped workers like bartenders and restaurant servers, but activists see 2024 as ripe to expand the tally to as many as 20.
That’s the thing though, they already charge enough to cover what people pay in tip but guess what? That doesn’t make them enough money. Next time they raise prices. They won’t take responsibility for it, they’ll blame it on the economy, but never the owners and shareholders that are making more profit than ever.
As a person who’s been in the restaurant business, no, the vast majority of restaurants in North America don’t make a large enough cut to pay their servers 35$/h. Most are always a couple of bad months away from closing. There’s a reason why it’s the type of business with the highest “turnover” rate for the business itself.
Now if you want restaurants to give servers the same wage they’re making more it means all prices need to be marked up about 20% (since people tip based on price after taxes) and in the end the customers pay the same thing, they just don’t have a choice about it.
That’s the thing though, they already charge enough to cover what people pay in tip but guess what? That doesn’t make them enough money. Next time they raise prices. They won’t take responsibility for it, they’ll blame it on the economy, but never the owners and shareholders that are making more profit than ever.
As a person who’s been in the restaurant business, no, the vast majority of restaurants in North America don’t make a large enough cut to pay their servers 35$/h. Most are always a couple of bad months away from closing. There’s a reason why it’s the type of business with the highest “turnover” rate for the business itself.
Now if you want restaurants to give servers the same wage they’re making more it means all prices need to be marked up about 20% (since people tip based on price after taxes) and in the end the customers pay the same thing, they just don’t have a choice about it.
Lot of people in this thread know nothing about the restaurant industry, but feel entitled to strong opinions about it.