you know that the actual minimum wage of someone who makes $30 or more in tips a month is $2.13 right? By law, if they don't make enough tips in a week to earn an effective wage of $7.25 an hour, the employer has to pay them that much.
this is all the employer actually has to pay. Everything else is the customer. Now imagine the employer has to pay $15 an hour. Thats 6+ times what they pay now if its a decently busy place.
You still think it's going to be baked into the price?
So...they put the prices up by 20% or whatever. By definition, the amount they'd raise would be enough to pay the staff the equivalent to the amount lost in tips. They don't need to maintain the same GP margin, as this is pure extra revenue.
I don't understand your confusion. The amount of money the customer pays doesn't change.
I'll give an example:
$8 item + $4 (50%) tip = $12
$10 item + $2 (20%) tip = $12
$12 item + $0 (0%) tip = $12
In any scenario, the wait staff's pay comes from the customer. All we are doing is, setting the price, such that you no longer calculate the tip. If the actual price doesn't actually change, you can bake in whatever you want.
Wait, if the employee gets their min wage covered by tips the employer pays less? That's even shadier than I thought. Is this in law? Wasn't a delivery company booed for that kind of behavior a while ago?
this is all the employer actually has to pay. Everything else is the customer. Now imagine the employer has to pay $15 an hour. Thats 6+ times what they pay now if its a decently busy place.
You still think it's going to be baked into the price?