I've just opened a coffee shop in Los Angeles last month, and we don't take tips. We only use self-ordering iPads (I've custom coded an iOS app w/ Stripe Terminal for it), and we don't accept cash either.
We've had a few customers baffled by the no-tipping policy, and still insisting that they leave a tip. Some even left cash on the counter or on the table. We had to chase a few of them down to return their money. Also, some customers seem to think that the screen froze at the very end because it didn't ask for a tip.
While it has been strange to see some customer's determination to leave a tip, I think overall it was well received by the great majority of people that just didn't say anything about it and made a mental note that the prices they see on the menu is what they'll actually end up paying.
We will probably need to highlight that we pay a higher wage for baristas & cooks to account for the lack of tips, and give customers an option to donate to a charity if they still wish to part with additional money.
I do believe that the incentive tips provide for employees to "act" friendly to customers can be transferred over into a review/feedback program, which is what we will be testing out. If customers rate their order and interaction with the barista to be satisfactory, a bonus payment will be made to the baristas on shift. Once we introduce this, I'll share the results.
You should write a longer piece about your coffee shop! and the process behind it. If you do, you should submit it to HN - and if you do that you should email us (hn@ycombinator.com) because we might put it in the second-chance pool (https://news.ycombinator.com/item?id=26998308).
If anyone is in the LA area and wants to check it out, it's Awakening Coffee in Inglewood. I'm there most days since we've just opened and there are many things to be sorted out. Come say hi.
Add some “we don’t accept cash” signs too to be nice to your customers, I’ve seen multiple instances of flustered people getting caught by no cash policies in the last year.
It’s the worst once someone has gone all the way through a tablet/GUI menu and made all their purchase decisions only to be awkwardly thwarted at the payment step. Negative bonus points if there is a line of customers behind the pour soul attempting to use cash
Interesting. The second one strikes me as odd. I have never paid any fees for a current account unless it went into the red, not in the UK nor in Norway. And a debit card is free in Norway and the UK.
Yep. Didn't want to share it because it's embarrassing how taped together that page is, but I had to put something up in an afternoon, because in the absence of a website people were taking photos of the menu on the iPads to take home.
What are you talking about. It takes over a second to load everything and the content jumps once or twice as it is loading. If this was a static website, not a 'web app', it would load faster without jumping around.
Now don't get me wrong, the design is amazing for a coffee shop, but it certainly isn't fast.
Interesting. I clicked on the link and it showed up almost instantly. And as I scrolled nothing loaded in or jumped around. So in assumed it was a static site with optimised images.
The jumping around happens on initial load. First the description loads, then the logo on top, which pushes the description down, and finally the menu items, which push the footer down. After that, the site is smooth.
I looked at the website, and I understand it is WIP. Is this a mistake that needs fixing?
"Americano - Espresso with hot water.
$4.50 (Medium)
$4.50 (Large) "
Oops that’s indeed an error on our part. The medium has 2 shots, the large has 3 shots, so there should be a slight price difference. Will correct in the AM. Thanks!
Everything looks delicious. You could polish up the design if you want, but I think it's getting the job done. I'd definitely go if I was nearby after seeing the menu :)
Fwiw I really like the current design. If you hadn’t said it was taped together I had assumed that it was purposefully designed like that. It not really brutalist, but adjacent, somehow? That seems fitting for an unconventional coffee shop IMO.
I think the site looks grand. One suggestion would be to make your card background white rather than yellow. I think it would help with contrast against the background of the site and make the text easier to read. Other than that you have your opening times, your menu and your location, and it's all front and centre. The only thing I'd add is a map to make your location easier to find but that's not a huge deal.
No. White would be bad. But the yellow could go more mellow ;-) Somewhere into the direction of 'Manila', or so. Would be more fitting to the whole coffee thing, anyways.
I'd just remove the sticky header with the blur effect and those shadows below the cards. Maybe make the menu categories collapsible. This is going in a modern minimalist direction which I prefer in such cases. If you need any design tips, feel free to ping!
Wow this takes me back. I went to the Boy and Bear in Culver all the time back when it opened. Eventually my tastes grew beyond their coffee quality, but still some good memories there.
Hah mostly just make coffee at home since the pandemic. Mostly I buy coffee from Onyx in Arkansas. I also get cold brew from Go Get Em Tiger, which is solid.
Tbh not sure if my issue with Boy and the Bear is the quality or just that I don't tend to like south/central american beans all that much. I go for Rwanda when possible.
I wonder if all these laid off engineers will end up opening small businesses and using their skill to cut one or two employees. Maybe we'll finally get a push toward real automation.
Because then those engineers will no longer be out of a job, but some other people with a smaller skillset will be!
And all will be good, because we finally had a push towards real automation!
I'm sympathetic to this argument because people can't retrain for a different job instantly, and there's mostly no safety net that allows people to take the time to retrain and still be able to provide for themselves and family while they do it.
But in the grand scheme of things, low-skill jobs should be automated to the greatest degree possible, freeing up people to work on more worthwhile things. And as automation gets better and better, even medium-skill and eventually high-skill jobs should also be automated.
In my version of utopia, people won't even have to work if they don't want to, but, due the to abundance afforded by all this automation, will still be able to live a very comfortable life. I suspect humanity will destroy itself before we get there, though.
(Of course, that utopia will be fragile if enough people don't know how to maintain the automation.)
The OP is running a distinctive coffee shop. Interacting with human staff is a feature. If I literally just want to drink a coffee then coffee vending machines already exist.
Sure, and people should certainly be allowed to run businesses like that. But a barista job shouldn't be one that someone has to take in order to make ends meet.
The notion of retraining implies a waiting pool of unfilled jobs. The only industries in the US that are chronically understaffed and desperate for talent are construction and unskilled agricultural labor, neither of which (separately or together) are prepared to absorb the roughly 22 million individuals who work in the service industry in the US. You want automation, you then also have to choose between luxury space communism or open air refugee camps and massive civil unrest.
I don’t even know if I was being sarcastic, hahaha. I mean I was playing with the fact that obviously the latter is a terrible pick, but I’m really worried that we won’t so much pick it as default into it.
Thankfully, life is not a zero-sum game (I mean it is, but we are just converting energy into complexity).
Some of these engineers will open other types of businesses and employ these people. Or maybe these people will go back to trades, because you know, these are much needed skills.
Based on your logic, we should still be using horses.
What isn't a zero sum game? Someone really needs to go take a look at a graph of household buying power charted against GDP for the last 60 years. Anyway, your ability to concoct pie-in-the-sky hypotheticals in the face of real-world consequences notwithstanding, historically folks that are pushed out of their industry (with outliers) have a tendency to slide into poverty and then stay there.
> Maybe we'll finally get a push toward real automation.
That's not at all what I'm looking for going to a coffee shop. I like the personal connection to the persons behind the counter. A short chat, sittinf down with friends, watching the barista clean the machine and make a coffee. It's the last place where I want to see automation and already touch screens that I as a customer need to operate to order are mildly off-putting and counter to a cozy feel. For me at least.
We only did it because the pandemic travel restrictions completely wiped off our previous (Bay Area-based) startup in just a few weeks, so I can see it happening.
Nice. Unlike the dev world where you can open github and find an infinity of open source projects, the rest of the world is much more opaque. It’ll be great if you open source the stacks you are building, write article how you are doing it, etc… I wonder if that will attract more people/devs into it and an open source energy develops around a bunch of these sectors.
Just wanted to say, please include some technical information if possible.
I've spent time with and looked into developing for Clover and set up other POS systems. I've also tutored people pursuing their CS degree while bartending that want to make their own system. I'm very interested in this space since it seems impenetrable. Small businesses can't take too many risks and trying to sell a tailor-made POS seems impossible. Obviously the situation is different, though.
We've had a few customers that have shown real interest in the POS system because they are small business owners too, and split their time between the register and everything else they have to do behind the counter.
I've started coding it only 5 days before opening, and it's paired with a kitchen app that shows & prints the orders, recipes, etc. They're both very raw and I'm working on v2 right now.
Definitely a space worth exploring. I understand the needs of bartenders, baristas, etc. a lot better now that I'm behind the counter.
As a consumer of both Square and Clover, I wonder if I am alone in finding the latter ridiculously clunky. I want to pay quickly, get a receipt texted or emailed or printed and move on. After I enter my details (eg phone number) once, I should not need to do it again at another merchant.
Square gets this. Clover seems not to, and is forever trying to get me to install its dumpy little app to harvest my data in exchange for coupons. Its like the evil stepchild of Foursquare and Facebook. Go away Clover! I actively avoid some takeout joints that use it now, I just dontnhave the mental energy to deal with the excessive contact Clover wants.
yah square is good, clover not so smooth. Sometimes I wonder if the clover payment systems are even online at times or if they just batch a bunch of orders in infrequent intervals. Not sure really.
I wasnt very clear, sorry. I expect the payment terminal backend to match my credit card ID to the phone number I input at the terminal when I elect to have the receipt texted to me. After that, I do not expect to have to supply any more data (eg at a second merchant using Square).
Clover seems to have trouble with this, and their solution appears to be to lean on me to install their app and use it to check in at stores to get some discount, in exchange for knowing data like my date of birth.
I love how one person opened a coffee shop which basically operates like every single coffee shop in the world apart from the US, and you guys need a detailed write up, charts, flow charts, tips for the secret sauce :)
The point is, that isn't how coffee shops typically operate in the United States, which is what makes it interesting. Operating a coffee shop without tips has special and unique considerations in the United States - chiefly, how to retain talent and employees when conventional wisdom would say it is better paying to get a job at a traditional tip-based coffee shop, which again, are plentiful in the United States. I would say managing employees is the #1 issue when running a small business like this, so the concern is especially relevant (and unique) to the United States market.
It is kind of like how, if a company was trying to tackle health care in the United States, they might attempt to build a system which reconciles many different hospital systems across the country. In other countries, with Universal Single Payer healthcare, this might not be interesting, but in the context of the United States, a system like this could have huge implications.
The market itself is inseparable from what makes a venture like this interesting. It is interesting precisely because of where it is located.
Former American here...grew up in Ohio but haven't lived in the country for a while (2007).
When did coffee shops in the US start asking for tips? It must be a relatively new thing. Never saw tips asked for at coffee shops when visiting until the ipad checkout thing (square?) appeared. Is it a nationwide thing now or just confined to certain regions (coastal metro areas?)?
I'm from Ontario, Canada, which has a similar but maybe not exact tipping culture.
Tipping at nicer coffee places (i.e. where they offer espresso-based drinks to order) has been a thing for a very, very long time. I can't recall ever not seeing a tip jar and have been going to places like that for probably 25 years, although if you told me the expectation was stronger nowadays that wouldn't surprise me.
The low end places (Tim Horton's up here, I guess Dunkin Donuts would be the comparison), don't expect tips or put out jars / enable them on their terminals, but Tim Horton's has always had a charity jar at the counter anyway so I would think most people would prefer that one.
Yes it started with the upgrade to smart payment terminals, where you insert your card and interact with the screen. It's nationwide now. It got a lot worse during COVID, at which point it became normalized to pay the usual tips even for takeout.
I'm living in Ohio and visit two coffee shops on the regular with electronic iPad checkout. One has a tip in the checkout process while the other does not. In the tip included location I've seen people in front of me tip 20 to 30% on a regular basis for everything from drip coffee to the coffee milkshakes that everyone seems to be overindulging on these days. So people are willingly paying $8 to $10 of Ohio money for a coffee milkshake, or $5 for drip!
The Pulp Fiction shake quote always comes to mind for me:
Vincent: "I gotta know what a five dollar shake tastes like"
Totally off topic but my buddy ran a coffeeshop for a number of years so I'd go in there when he opened to hang out and start my day. It always blew my mind how many people ordered the 24oz "wake-n-shake" at 7am! The drink is just a vanilla shake with a strizzle of chocolate around the cup and a few shots of espresso in it. Sometimes even with whipped cream on top!
Caffe Nero is a chain in the Boston area (and elsewhere) which has no tipping when using a credit card. Most locations have a tip jar for cash, bud no option to tip. It certainly helps me think that they’re getting paid a decent wage since they’re not prompting me to tip automatically. And the employees generally seem happy, and payment goes faster since there’s no stuttering and thinking over the tip step.
The same simple credit card machines are used at Qdoba, but there they ask for a tip, even when coming in to get a bowl and doing takeout. Not unreasonable, but the difference in experience and expectation is pretty wild: coffee sometimes takes as long as it does to put a burrito bowl together, yet one expects a tip and one does not.
But again, it's not that simple, because everyone coming into your coffee shop is going to be expecting to have to tip, so you need to properly manage those expectations. How the owner is planning to do that, and the results of those efforts, is interesting.
Edit: and while per the other replies many people don't claim (all of) their cash tips, you are supposed to claim them as income.
Customers will tend to be price sensitive more to the listed price than the actual price they pay, particularly when it comes to tips since they're "choosing" to give the tip.
This would earn you the reputation of being especially expensive, even if customers aren't actually paying you more.
It always was illegal, but hard for the IRS to prove so most got away with tax evasion. These days most people pay with a credit card which means there is an electronic record that the IRS can demand of the employer. With cash tips the waitress was collecting the cash themself and the manager didn't have a good way to get the correct number. If you report zero tips in the cash system someone will notice, but if you report everyone only gave you half what they really did there is no way to know.
I grew up in New England where Dunkin Donuts is almost a religion, right up there with the New England Patriots. I wasn't excited about Krispy Kreme at all because I grew up with good donuts.
One of the first things I remember as a kid in the 1970s was reading the "no tipping" sign at Dunkin's and asking my parents about it. So it has been a policy there for a long, long time.
(Funny they put a Dunkin's in on my side of town a few years ago, I don't know how many people know the supermarket across the street makes better donuts, which is truly unusual.)
We had a Starbucks in Collegetown which went to only taking mobile orders during the pandemic which meant I pretty much quit drinking coffee there. Not long after Starbucks closed the location to bust the union that was forming there. In my mind that area is a "coffee desert", I mean you can get coffee but so far as I can tell the best coffee is at 7-11 and everything else is much worse.
Context matters. The dynamics of the business are fundamentally different because many employees prefer tips to the alternative, and they have have many options where to work. Employees have a lot of leverage due to a chronic labor shortage.
This dynamic has played out time and again in Seattle, where business owners tried to switch to a "no tipping" model with a 20% mandatory service charge but ultimately had to relent because employees were not keen on earning less money.
> tried to switch to a "no tipping" model with a 20% mandatory service charge
Sounds like a false dichotomy. Why is the only other option still an imposed cost on the customer? Wouldn't it be nice if the bad servers just got fired like any other profession and the good servers got a bonus or something from the business owner?
Maybe people shouldn't "aspire" to be cafe baristas and chain restaurant wait staff. There are plenty of students and elderly that could handle the job and also handle the minimum wage. There's no reason those jobs should be lucrative, unless the business owners (rightly) realize those staff are the face of their operations, but in that case, again, the business owner should "invest" in their higher salaries to hopefully bring in business. None of this should be imposed on customers. Just my opinion.
There is no revenue/wage neutral way of restructuring how the costs are presented. A 20% service charge generates less income for waiters than tipping. Adding 20% to menu items generates less income for waiters than adding a 20% service charge. This effect isn't due to redistribution but a reduction in bill + tip revenue. No one has to like it but there is a lot of empirical evidence for this effect (and there are good theories as to why it happens).
By trying to eliminate tipping, you are working against the interest of waiters since they naturally want to maximize their income. You may not like tipping but it is economically optimal in many contexts. Businesses need to compete for employees and tipping maximizes employee income relative to revenue.
Where I live, most of the bartenders and waiters I know personally earn on the order of $80k/year if they do it full-time, and not at high-end establishments. Not an ostentatious lifestyle but definitely middle class.
You're ignoring the part that it should not be the customers burden. Sales and marketing people have high ceilings too, I can respect the hustle, BUT they don't get tips. They get a normal wage/salary and their company is on the hook for providing bonuses/commissions. It's not consumers "working against" the workers, it never should have been positioned that way in the first place. If business owners want to incentivize hustle, they should do it on their own dime.
It's a grey pattern to offer your product at 1 rate but implicitly you impose an additional 12-20% . Just pay them more, and charge more for the product, the end result is the same from the consumer. If the workers are no longer satisfied, there are other sales and marketing jobs that offer real salaries plus bonuses/commissions as mentioned above.
You can definitely go higher in certain contexts (bartenders at busy nightclubs, fine dining as you mention). There's also a lower end like diners, but even then it's a unique case of an easy to enter job that can pay a fairly liveable wage.
Some places still have a lower tipped wage, but your hourly pay + tips has to at least equal the federal minimum wage, otherwise the employer has to make up the difference. Of course, the federal minimum wage is criminally low, and many employers aren't exactly ethical/operating legally.
> There are plenty of students and elderly that could handle the job
There is not an infinite supply of students who have the time to do that job. Our son worked at a coffee shop. Until the manager started pressuring him to work more hours than he had time for.
Some people think other people's jobs are bullshit. And then you end up with a shortage of competent workers. Every job should be lucrative.
I don't like the proliferation of tipping everywhere.
But I know many sit-down restaurants have tried to institute a no-tip policy, but both employees and customers hate it. I would hate it. I like giving tips. I wouldn't go to a restaurant where tipping was not allowed.
Plus, the restaurant has to raise their prices up by 20% anyways, because they now have to pay their wait staff more. The customer pays anyways. So it's a stupid thing not to have tipping. You're not going to save any money at all as the customer. It's impossible to save money.
Furthermore, I know waitstaff that make a considerable amount of money from tips. Like, $300-$400 per shift and more. That's about $80,000 to $105,000 per year. So the food prices are going to have to go up substantially to cover what that person made with tips. The reason that many wait staff make so much is that they have "regulars" who tip them well because they develop a relationship and a repore that goes beyond just simple waiting on a random customer.
People say they want the price that's on the menu, but come on - you know there's going to be a tip, if the menu says it is $20, then it is $23, you can do this in your head or on your mobile phone. You know exactly what the price will be unless you failed 2nd grade math. Why on earth would anyone care if the price said $20 or $23 on the menu, if in either case you pay $23? It's ridiculous in the extreme. Unless someone is an extreme pedantic martinet.
I see it completely different. Coming from the EU, I hate going to restaurants in the US because of the tipping culture. I dont mind leaving something if the service has been amazing, but then it might be 5e when the family have had a full meal etc. Being forced to pay part of the staff salary directly, with staff getting angry / annoyed when you dont leave enough is backwards to me. Its not that the math is hard, its about having to decide what your income is going to be based on how you work. Thats not my business to deal with, thats the management / workers business. I almost feel like it creates a culture of entitled people (Karen Generators), who believe they can do what they want.
Im also assuming that a lot of waiters dont pay taxes on the tips (at least when they are paid in cash), which would probably account for some of the difference in income between salary and tips. Here in the EU (most of the countries) at least we have good healthcare and education that is payed from those taxes, so you dont need to pay a 1k private insurance on a waiters salary.
Also, if I see something advertised as 5€ I expect to pay 5€. Having to pay more then the advertised price feels like I've been tricked.
I've never been in the US, but just thinking about having to pay more then what was written and knowing that due to not having a lot of money, I could get in trouble, gives me anxiety...
You would not get in "trouble" - I was a waiter at a restaurant in New York where the waiters make $0 per hour, only tips, and often we had customers from France or Germany who would sit and drink coffee for 3 or 4 hours, pay for the coffee and leave no tip. We waiters were upset about it because they did not understand that we are only paid by the customers, not the restaurant. But no one ever got in trouble.
When I lived in France and spent time in Germany, I always tipped a lot just to make a statement... but I understand that the waiters there are actually paid by the restaurants, so it's not necessary.
That's how it is. At the end of the year, they ask you how much you made in tips, calculate the tax off that and then "pay" you the exact amount of your taxes by giving it to the government.
It's the same as strippers. Better, because strippers often have to pay to dance.
Second, even if it DID happen, that is the fantastically rare situation, that is extremely bizzare. You can read here and everywhere that this is not how it is done, so you don't make a judgement based on one single time, especially when no one else ever has had that experience.
I've left restaurants many times without paying a tip because of exceptionally poor service, it's never happened to me. I've never heard it happening to anyone.
Yeah, totally 100% do not believe you. Sorry, man. I just don't. Again, unless that server was actually and really truly mentally ill, and not using the term colloquially.
I don't think they meant "trouble" as in "they'll be in trouble with the restaurant for not tipping." I read it as "I'll be in (financial) trouble because I'll run out of money sooner than I expected" which would be a concern of mine as well in their shoes.
Right. But you KNOW that tips are used in the USA. So if you KNOW that tips are 15%, what is the big deal? You just add 15% to your $100 meal and you pay your $115. Who cares about the advertised price? Why is that such a holy of holies to genuflect in front of? You are not tricked. You know that it is custom to pay 15%. How are you tricked? You aren't.
The thing is, you DON'T have to tip. I have walked out of restaurants before without tipping when I got super shitty service. You can pay 5% or 10% or 15% or 20% or 25%.
And the thing is that here in the USA, everyone LOVES tipping. Customers, good nice customers, love tipping. Usually it is the whiny bitchy horrible customers that don't like tipping, and if there was not tipping, they would be whiny bitchy horrible customers anyways. This much I know to be true.
If you don't have a lot of money, just go and be honest and tell the wait staff that. Be honest. I mean, don't be going and ordering $800 worth of food and say you don't have a lot of money because that would be horrible thing. But if you have a very little money, just apologize and say you'd love to but can't.
Also, these days you can go online and see exactly how much the food is, and add on the tip. Just see what you want, add 15%, and you know. This is not difficult. It won't get you in trouble if you take an extra 30 seconds to look up the menu on line, right? And ffs, if you order $30 dinner, and the tip is $4.50 and you don't have enough money to cover it, why on earth would you go out to a restaurant in the first place? Stay at home and make a nice pasta dinner that is just as good as a restaurant and pay $1 or $1.50. Or euros, I think the exchange rate is pretty close to one-to-one. If you go out to a restaurant and go broke over $4.50, your issues are a lot deeper and worse than not having $4.50 tip. Like, you should see a professional therapist about why you would blow the tiny bit of money that you do have on a $30 meal when you can spend $1 and eat at home.
Tbf there are still examples of this in the EU. At least here in the Netherlands, if you purchase any drinks in recyclable bottles, you pay a surcharge at the register which can then be reimbursed when you bring the bottle back. It's not a large discrepancy (25¢ I think?) but it bit me once when I first arrived and I was paying for everything with cash. I had enough money for everything except the bottle surcharge.
But I still have to pay for it upfront. And if I'm out and about in the city and stop into AH to buy a drink to carry with me, then I either need to carry the bottle with me the rest of the day or throw it away and lose my "deposit".
The point is that it's not included on the label as the price I pay at the register.
Right, it's still a deposit, and not a surcharge. The whole point is that you don't throw it away. That's exactly what makes a 'surcharge' into a 'deposit'.
Most places in the US don’t even include all taxes in the prices they display so you will have to do some calculation anyway. It’s weird coming from Europe but you kind of get used to it, at least I hope.
You definitely get used to it. Having lived in both places, it's not really a big deal.
For me, living in Texas, I would assume the final price is 10% more than the sticker price calculation. When I was buying groceries, this generally meant I was always "under" my estimate because most food isn't taxable in Texas. But I was never surprised by the final total at the register. At restaurants I assumed 20-25% depending on what the numbers were.
Now that I live in Europe, I don't even notice. They tell me the total, I pay. End of story.
There is also what comes across as fake friendliness when going to a restaurant in the US.
> Hi, my name is Bobby, I am gonna be your server today. Blah blah blah blah...
It always comes across as angling for tip money. Waiters here don't usually introduce themselves by name and you generally have less interaction unless of course you start conversing. I prefer the lack of expectation if the and waiter does a good job, then I am more than happy to tip a little. I am in Catalonia where tipping isn't a big thing. Not sure if it's because of the Catalan reputation for being tight with money, or having read Orwell's "Homage to Catalonia", it is related to when tipping was banned and the city was run by anarchists.
What do you call your waiter when you need to get their attention?
In America we like to call people by their name, not their title, especially for a service role. Otherwise it comes off as very classist and elitist. Someone calling out "Waiter!" would come off as a bit of an asshole, to be honest.
I can’t think of a time I called my waiter. I usually just make eye contact and raise my finger in what seems like a universal “I have a question” posture.
But if they are busy, then I'll do an "Excuse me" really nicely and just loud enough so they can hear - not too loudly, and they will nod and that usually is it, and I know it to mean that they will get to me as soon as they can, they acknowledged me. And if it is super busy, I'm cool if it takes a little longer than usual. It happens. If I'm in a hurry, I'd go to McDonalds. Not really, I hate it, but that's the idea.
I mean ... practically anything is grounds for taking offense in America. Americans are like people who were suddenly told they're allowed to be offended, and now they're on a binge of being offended by everything. I probably wouldn't yell "hey kid" to my waiter at the Waffle House (or maybe I would, if I felt like I liked the kid). But "chico" is a term of endearment. I've never heard it said without some sweetness and tenderness... it doesn't sound the same as "hey kid" delivered in a derogatory way.
Nah. This is like it is in political discussions or online discussions, but in real life, in real time, it is not this way.
You want to use standard and customary forms of communcation, though. You can be a little friendlier, or a little more formal, but it's never good to stray too far if meeting or talking to a person the first time.
However, if you get a bead on the person and their personality, you can adjust your style to theirs is best.
This is corporate / chain restaurant America, and you will probably find the same in a chain restaurant in Spain. Typical mozos in Spain are just chill waiters like good waiters at normal restaurants in America. Anyone who goes "My name is Bobby..." is being forced to up-sell and act like a real estate agent by the restaurant company they work for, rather than be themselves. A good waiter anywhere in the world simply listens, responds, makes a joke, and serves your food. That is as true in America as it is in Barcelona.
Everyone in business is "fake." Your auto repair person, the person at Best Buy, people at the clothing store. Of course people are "fake."
However, they are people, too. I am always SUPER SUPER nice to people who are "fake" to me in restaurants or clothing stores or wherever, and they so much appreciate it that 95% of them actually are NOT fake nice to me anymore. As I wrote elsewhere, many times I got a desserts "on the house" at restaurants when I go out in groups, because I make it so enjoyable for the wait staff.
Of COURSE it is angling for tip money. I have walked out without paying a tip for crappy service. I paid zero.
I know wait staff is "fake" nice because they want tips, but if I'm genuinely nice to them then they are "real" nice. And if you are a regular at a restaurant, and tip well, everyone will know you and you will be treated as royalty. And you usually get the same server, who knows your kids names, where you work, and actually they care about you, but yeah, the customer knows the waiter or waitress does not work for free, of course. Neither does the customer.
And, we are all fake to people who give us money. We are ALL fake to our bosses. Nobody will go to their boss and be all, "Hey you fucking moron, another stupid fucking idea you have." Even if that is what one truly thinks. We all have different masks for different occasions.
In Europe, and Catalonia maybe, tipping is not expected, so it is not the culture. If I was there, I would not tip.
But again, the whole argument is ridiculous. If the meal is $30 (or euros), and a 15% tip is $4.50, then you pay $35 (I round up). If no tipping was allowed, the restaurant raises the price to $35. It's the same exact thing. Except if you get a REAL bad waitstaff, you pay $30, because that is what the tip is for. And bad service is if they are jerks, not if they spill a glass of wine on you, which sucks but is an honest mistake that can happen to any of us. I know a waitress who did that and she knew the customer well and bought him a nice shirt for the next time he came back.
But again, you pay the exact same price either way. So not sure why people have so much vitriole against it. And, so many Americans LOVE the custom of tipping. A lot of people go back to the same restaurants and love supporting a waiter or waitress that treat them well. I love paying tips, I usually don't pay less than 25%.
Right, I understand what you are saying. Many say the same exact thing.
However, while you don't like it, a vast majority of Americans DO like it. I like it. The staff like it. Management likes it.
I guess the solution is that if someone doesn't like tipping, they should never ever go out to restaurants here in the USA. That would take care of it instantly for you.
But again, as I said, you will pay the exact same or more if tipping is included in the price! The exact same or more.
The thing is that if you don't want to leave a tip, don't. It's so easy. Just don't. Most wait staff would rather a dinner party leave without paying the tip rather than have whining - who wouldn't?
I've never had staff get angry with me and I've been going to restaurants probably longer than you've been alive. So I don't know where you're getting this from, unless you are lying for effect, to falsely bolster your case.
I've never had entitle person ever. I've always had fantastic relationships with the wait staff. Because THEY WANT to give you a great experience so that they can get a nice juicy tip. It's not fake on their side, any more than a Disney worker or auto repair shop owner is nice to their customers.
I've had such a good time with some wait staff, that they give me free desserts. I remember once my reputation for getting free desserts got around to a group of friends I occasionally hung out with. We were at the restaurant and said that it was bullshit and to do it right at that restaurant. I did. The waiter gave me a free dessert. Which are restaurants' main money makers.
Waiters are required to pay taxes on tips, but you are right, if they are in cash, well, they can break the law, but that's the same exact thing as if someone doesn't come to a complete stop at a stop sign. Anyone can break the law.
And as I also said, a LOT of restaurants, even high-end restaurants in New York, Los Angeles, San Francisco have tried no tips. But it was a disaster in almost all cases. Their wait staff would quit all the time, because a good wait staff person can make fantastically more money in tips. If a restaurant pays $25/hour (good luck on that) the wait staff would be paid $50K/year, but a good waiter can make $100K+ on tips. So the wait staff quit the no-tipping restaurants and move to a better, for them, restaurant.
But really, you are paying the exact same, or more, if it is all included in one bill with no break out. And by breaking out healthcare costs, you will actually pay less money for the meal than all included.
As far as healthcare and education being free in EU, that is irrelevant.
There are actual rational reasons, though. You, and even most Americans, don't know what they are, is all.
Random sales tax on stuff for example is separate. This is not the fault of the business. The way USA government works is that sales tax is set by the county. There are 3,142 counties and county equivalents. Each charging their own tax amount.
Let's say you are a big store like Target with stores across the USA. They want to charge $25 for a pair of shoes. How do they advertise? They take out advertising all across the USA, and charge $25 for the shoes. Well, how do you put in the correct amount on the newspaper or website advertisement? You put it in the newspaper for $27.50 because one county charges 10% sales tax. But the next county over has a 7% sales tax. The correct price is $26.75. But that newspaper is delivered into multiple counties, in the same exact newspaper, so there is no possible way for target to put the correct price. It's literally impossible. So what they do is say the shoes are $25, and you pay the difference to the county as an extra. Because the business can do fuck all about it. In European countries, they probably have the same exact sales tax everywhere, so it is ok to do it that way. But Target isn't going to get the entire USA to change the tax code of 3,142 different tax jurisdictions. Good luck on that one.
For tipping, you don't have to carry cash at all. I never do. They have an extra line on the receipt to add the tip. I just round it and don't do it exactly, because it is easier and faster that way.
You want me to ask for what I want? Ok. I want to tell you the price of the meal and you pay a 15% tip. That is what I want. And I don't want anyone whining about it. If one wants to whine, just stay at home and cook a home-cooked meal. Everyone wins.
And, as I stated elsewhere, it is usually the people that are most vocal against tips that are the most pain in the butt customers anyways; even if there were not tips, they would still be the worst customers. Maybe not you, but most like that always have something more to complain about.
> And due to the tipping thing, I had to carry cash, which I hadn’t done in 20+ years.
> It felt like going back in time a very long way.
I live in North America and tip for alot of things. Never paid cash. Not sure why you felt like you had to but can always tip on visa the rest of us do.
Fwiw you can tip with credit cards everywhere now. I don't think tip receivers like it, but tipping sucks, they can deal with it. I don't carry cash anymore.
In a case like this, you should bring cash with you anyways. It is a different situation than going to a restaurant. When you travel one should always have cash, even if one normally doesn't. It's common sense.
Personally, I just stopped doing that.the tips were small to begin with.
I think people also know non Americans aren't going to get it right. If they're the type of person to get offended over that, I wouldn't spend my time worrying about their opinion of me
Even credit cards seem super backwards in the US with them actually taking your credit card and giving it back to you (and your tip being just written down on a slip of paper).
To explain my down-vote. Firstly, many people, even smart ones are bad at mental math. The idea extra charges are added at the end is literally a dark-patterns used to trick people into spending more money because they are bad at doing this.
Next, why do _some_ waitstaff make a lot of tips, and not others. You don't acknowledge how in almost every biased way possible tipping promotes some people, and punishes others.
Lastly, I personally find tipping and therefore your slightly aggressive defense of it, kinda gross? It's a power-trip at the end of the day to control someone else's actions with your money. Sure, that's life, but with tipping it's so blunt.
>Firstly, many people, even smart ones are bad at mental math. The idea extra charges are added at the end is literally a dark-patterns used to trick people into spending more money because they are bad at doing this.
You are making a fair point that most people can't math.
On the other hand, people who can't do very simple math have bigger problems to worry about than tips.
>Next, why do _some_ waitstaff make a lot of tips, and not others. You don't acknowledge how in almost every biased way possible tipping promotes some people, and punishes others.
At least in theory, the point of tipping is to reward good staff and punish bad staff. The whole point of tipping is to create an income gap, with the hope that staff will be incentivized to be "good" staff so they make more money and be on the better side of the gap.
It's not unlike good employees getting paid better than bad employees, the only difference is that the incentives come from your customers rather than your employer.
>Lastly, I personally find tipping and therefore your slightly aggressive defense of it, kinda gross? It's a power-trip at the end of the day to control someone else's actions with your money. Sure, that's life, but with tipping it's so blunt.
Even without tips we are all going to engage in "controlling someone else's actions with money". That fancy restaurant that just billed you 3 or maybe even 4-digits? That money is so the staff are incentivized to treat you like nobility, among other luxuries you just enjoyed.
>> It's not unlike good employees getting paid better than bad employees
It's actually exactly like that. In the feral world of New York City wait staff, where people only live on tips and there is no base income, the income gap is extraordinary in the same shift in the same restaurant. And it's only slightly based on looks, or how "cute" someone is. It's almost entirely based on their skill and ability to serve the customer well. I could walk out with $250 a night and another waiter would walk with $350. He was simply faster, more clever and better at serving and charming the customers. I was a bad waiter. Of course, the prettiest women among us might walk out with $450, so I guess if someone really wants to complain about life being unfair, they could. But those girls needed to stockpile cash then while they were young. As an old man, a waiter can still make the same.
You're just plain wrong, please stop. New York City has a $15/hour minimum wage, with a $5/hour "tip credit" for food service employees - that is, as long as the employees are making more than $5/hour in tips, the employer only has to pay them $10/hour. Any employer that doesn't pay a base wage is operating illegally and is guilty of wage theft, no matter how many tips the employee makes.
Well, that wasn't the case in 2002. The minimum wage for waiters in New York was $0.
$15/hr ain't exactly a living wage either, nor does it justify losing a table for an hour on four people who don't leave a tip. The difference between $15/hr in New York City now and $0/hr in 2002 is basically nil.
Waiters make their money from tips. If you ever work in the service industry in America, and serve them their breakfast, you'll understand why.
That person's main point is still true. The main point is that a better waiter/waitress makes more money in the same shift, even if they hypothetically waited on the exact same people.
There is skill and talent involved. We have all had shitty waitstaff wait on us, and great people, too. The great people get a better tip, even if they are uglier, or walk with a limp and have a hunch back like Quisimoto. In another post, I listed dozens of ways that one staff person can make more than another by using different techniques.
Everyone carries a mobile with them. We didn't use to and had to figure it out. But it is so simple. All you have to do is take 10%, then take 1/2 of that and add them together.
So if a meal is $48.75, then 10% is $4.88. Round it up to $5. Half of $5 is $2.50. $5 plus $2.50 is $7.50 tip. then add that onto the total of the $48.75 but I round the $7.50 up to $8 and so $48.75 and $8 is $56.75. Super easy to do in one's head in less than 30 seconds.
If lunch is $38.64, then 10% is $3.86. Round it up to $4. Half of $4 is $2, so $4 + $2 is $6 tip. Total is $38.64 + $6 or $44.64. Thirty seconds to calculate it.
You do rounding to make it easy - you don't do all the decimal points exactly, that sucks to do it that way. Rounding is close enough, and you round up.
.
Some waitstaff are better than others. They are more social. They develop regulars. That's where the real money is made. You get regulars. There are other tricks, too. Not all of them work every time for every person, but it is a statistics game.
Like if a waitress wears a flower in her hair, can make up to 17% more tips. Some people know how to upsell for a higher total bill and make more tips because of the percentage. If you draw a smily face on the bill, you will get a bigger tip. Studies have shown if you can entertain people when appropriate (unobrusively - you have to guage the situation), that can increase tips by 7%. If you have regulars, give them freebies - fucking EVERYONE loves a freebie. A study showed that if you give a weather forecast on the bill, the tip is an average of 22.2% vs 18% if they didn't - so when giving the bill you write "The weather is supposed to be great tomorrow, have a great day!" If you use your customer's name, you will get a bigger tip. Giving a gift increases tips - even giving a candy cane during christmas or candy corn during halloween, etc. Other ways: Squat down to talk to customers, smile a lot, write "thank you" on the bill. Read your customers. Learn what your boss wants so you get the better shifts more often. Get better customers and get them to come back to you and ask for you. Basically create an environment that predisposes customers to be generous.
Did this answer your question about why some make better tips?
>Lastly, I personally find tipping and therefore your slightly aggressive defense of it, kinda gross?
That's ok. None of us can please everyone. I'm positive someone finds things that you think or want as gross, and I don't mean that in a bad way. I very much am strongly supporting tipping, I think it is great.
>It's a power-trip at the end of the day to control someone else's actions with your money. Sure, that's life, but with tipping it's so blunt.
Eh. It's blunt everywhere. We all knuckle under to our stupid bosses we've all had in life because of money. And the thing is, that multiple studies have been made for waitstaff and they all WANT to be controlled if they make more money. Wait staff in the USA love tips, and they love the thought that if they give great service, that their tips can be larger - it gives them motivation. This is not me saying this, it's what the wait staff wants. They love it. Not every single waiter/waitress. People who suck at interpersonal communication probably hate it, of course. That would be logical. But it is a personal job, so they should find another job, quite frankly. And in general, customers don't look at it as a power trip, at all. Some do, but the vast majority do not. I don't. I'm not imperious, snapping my fingers for service, and ordering people around. That is just bad manners and an ill-mannered person who would do this even if there was no tipping. Because that is how people are.
But what they found in restaurants that had the no-tip policy is that all of their really great staff found better paying jobs easily, and the shitty employees, or new employees, would be the ones that stayed. And the new employees would leave as soon as they were trained up, so all that was left at the no-tip restaurants were the shittiest of the shitty employees. This is what I read from a study on this exact situation of no-tip restaurants and the effect it had.
How do you fell about internships? I generally think those are a good thing. Those are often below minimum wage jobs.
Then again, I am not in favor of say Amazon workers being exploited with very poorly paid jobs and conditions for their source of income over the long term. (Thomas Sowell gives some good arguments against minimum wage - I am on the fence and it boils down to "it depends").
>>How do you fell about internships? I generally think those are a good thing.
Massively against them if they aren't paid like any normal job. If the intern is doing actual productive work(and let's not kid ourselves - they are most of the time), then they should be paid like any other employee.
The only exception I can see is companies that have training programmes with vocational schools, where you go and work somewhere for say 2 years training to be a carpenter or a plumber or electrician or whatever - then it's no different than being at school and learning. But I'd wager than 99% of internships are not like that, they are just a very cheap way to get unpaid(or poorly paid) labour under the pretense of "giving young people work experience". It's nonsense.
An intern can only be unpaid if they are not doing productive work and you have a trainer with them. Most unpaid internships are illegal already, but the interns don't know they can/should report it.
If you are an intern in a railroad you can move cars around the yard all day: you can move them to a loading dock, or to make up a larger set for a train, but at the end of the day you must move them back. However if any of those cars are moved to the dock are loaded/unloaded, or the larger train they just made leaves the yard, then they did useful work and must be paid for that.
>>An intern can only be unpaid if they are not doing productive work and you have a trainer with them.
I mean yes, but like you yourself acknowledged - that's a completely meaningless law. No intern is going to report this, because young people are just happy to have a job, no one wants to destroy their career right at the start. I myself was in that exact same position when I started - as an intern, my contract specifically said I can't be doing any productive work. Of course I did anyway. And I'm sure it still happens in every industry, because.....why wouldn't it. That's why I think unpaid internships just shouldn't be a thing at all, anywhere, unless linked to vocational schools that oversee them as a training programme.
I graduated during the dotcom bust, and the best thing I did was taking a temporary job at pretty much minimal wage. As soon as I had some experience on my CV, I got a lot more interviews afterwards.
I am in agreement that apprenticeships seem to be a good thing that we should reintroduce. Working in IT, real world experience seems to count at least as much as anything I learned on university. The only times I have needed to implement a sort algorithm is for interviews.
>> I did was taking a temporary job at pretty much minimal wage.
That's fine then. I specifically mean internships which either don't pay anything or which pay some token amount like $100 a week for fuel expenses. If they pay a minimum wage then well, they are basic level entry jobs, that's fine.
As i mentioned above, do they pay taxes on those tips? Are they logged so the IRS are aware of them? Could this be accounting for some of the difference?
> like every single coffee shop in the world apart from the US
I very much appreciate being able to amble into a coffee shop, order a coffee from a human being (perhaps doing my best in a foreign language I'm not all that proficient in), and paying cash should I so desire. Like you can in most coffee shops around the world.
There are other tipping cultures outside the USA, you know? Tipping is very common in the Balkans and other countries that were influenced by Ottoman culture, for example. While it is not expected, many coffee shops all around Europe also have tipping jars.
It's really not common in much of Europe at least for people to actually discourage tipping (though they may seek to refuse what they perceive as exorbitant tips).
I have lived in Istanbul for a decade now and while many of us do tip, and tipping is rarely expected. The expectation is higher than foreigners, but if you live here, you end up eating at the same places over and over, and that expectation goes away fairly quickly. When I first moved here I realized I was tipping 3-5x what a local would, because I was tipping American standard.
Tipping is mostly expected when there is a lot of service involved in the meal. This means either fine-dining, or Meyhanes where you spend 3-5 hours drinking heavily (Raki/Ouzo) and eating mezes & fish.
I think the tipping culture you're talking about is "Bakshish" which is really more of a bribe than a tip. It doesn't exist much in Turkiye anymore (unless you're an Arab or Syrian refugee, their experience is far different than others).
Bakshish is still very prevalent throughout the lower Balkans, Serbia and most Islamic nations I've visited and worked in, except for KSA and UAE (they'll kill you for that shit.)
I haven't been to Turkey, so I don't know how the culture evolved there. However, in former Ottoman-controlled states that I've been to (and especially in Romania, where I was born and live), tipping (as well as small bribes, which are both called bacșiș here, same word as bakshish, though that is changing somewhat recently) is quite prevalent and expected in many settings. At the very least, in any setting where you are served by someone while sitting down, even if it's just drinks at a bar, you are expected to tip (typically 10% being seen as a tip for cases where you were happy with the service).
Tip jars are perhaps a more recent phenomenon, but they are now almost ubiquitous in all places that serve anything, event at a counter or to go - including club bars, coffee shops, even many fast food places.
Definitely more of a bribe, and common in a lot of the world, in the countries mentioned but plenty of others, esp. the African ones I worked in; different names but same idea.
A "cost of doing business, and we appreciate the opportunity" gesture. Prove that you're serious, and that you want an actual result.
There are a lot of business dark patterns, and when they are prevalent in that society, that society is always poor and corrupt.
An Egyptian friend, once warned his friends about me: "Now he's American. When he says 2pm he means 2pm, and when he says we have to leave at 8, that means we have to leave at 8. This is why Americans are rich. They respect schedules, and care more abut business than friends or family."
I was just going to say - from Croatia - in most of my circles if you don't leave a 10% tip you're either poor or a miser. Frankly even if you're poor, you likely won't go rather than count cents - only relatives in retirement don't leave tips when they insist on paying.
You're not legally obliged to give it - but it's very much expected and you can see the awkwardness when you skip it.
Like just the other month I was in this resort with my family and first night we checked in we went for diner - waiter was very polite, entertained my one year old and gave us tips about the area. We didn't have cash on us so we put it on the room and signed the receipt. Next day he was still professional but not as much effort - then I left a tip for both dinners and suddenly it's back to chat mode, how was your stay, parting drink on the house, please do come back, etc.
In coffee shops you can see the looks you get when you wait for small change.
The problem with US is that it's so culturaly ingrained that it's really not optional anymore, even if it technically is and no one will call the police on you for not doing it.
As a personal anecdote - when I visited America on a business trip we went to a restaurant where the staff was literally rude to us, the food order was not what we ordered and massively late, and yet our hosts insisted on leaving a 10% tip because
1) low tip will show them they have done a poor job(?!?!?!?!?!)
2) we would look like jerks for not tipping(their explanation).
So basically my takeaway is - if you have to tip even when your experience is poor, or you risk "looking like a jerk", then it's not really optional.
But that's what tipping is here too - it's basically signaling you're not a miser. Sure it's supposed to encourage better service but that's secondary. Just like buying rounds, etc.
Sure, but the OP's cafe literally doesn't allow tipping, it's not that they don't expect them. That's what's bizarre/noteworthy on this front - and it's definitely not how every coffeeshop in the rest of the world operates.
> like every single coffee shop in the world apart from the US
Well, context is important. Right? If someone opened a "tips required" coffee shop in Japan, it could be something to watch and learn from.
I don't generally have a problem with tipping. Still, I would much rather people get paid well, with whatever that cost might be reflected in the price of what you are buying. If, on the other hand, tipping is on the ticket and it is used as an evaluation of the service being provided, the field should be blank by default.
I have tipped way over 15% lots of times. Every time a device tries to force a higher percentage on me, I reduce it because the pattern annoys me.
It is always interesting to travel to places like Japan, where tipping at a restaurant can be offensive.
I do understand the specific of the US situation, I’ve leave there since the last decade. In a very touristy city to boot, so a large part of my social network rely on tips.
But the lack of awareness from our US friends to understand that they are the exception, not the norm in that particular regard is a bit disconcerting.
Tipping is an evolved system.
If you go to most countries outside the US, you are not expected to leave a tip. But if you do leave a tip, here is what you get:
. You are the first person served, every time you walk in, no matter how crowded the bar is.
. You are poured the extra liquor that a bartender is allowed to "spill"
. When you bring your date to the restaurant next time, you are treated very well.
It is true that in America, these things are lost because everyone is expected to tip. But this is the true point of tipping a good waiter or bartender, to show your appreciation and also to be remembered.
I had the chance to move around a lot and my social alcoholism made my spend lot of time in seedy places where someone pour out booze.
In all those places, paying more money is just bad taste.
A way to get what you describe is ( in my personal experience )
- smile
- be young and / or attractive
- being visibly in distress
- being polite and patient in the face of another rude customer
- make some jokes, not in English but in the language people speak where you are
- have a dog / a kid
- show that you have some humors and are not an asshole.
With all due respect, paying more and displaying extra wealth is a good way to be classified in the easy to dupe category. In some language due to post WW2 wealth, some folks say “an American” like “do you think I’m American or what ?”
mmmm... it depends on the country, and the style, so all of the things you say are true. Simply leaving a big tip means nothing. And being an asshole overrides everything - never a good idea. I am also a social alcoholic! Hi!
But if you have established communication with your waiter / bartender / blackjack dealer, and you leave them some extra, it is much more appreciated outside the US. Especially if they see you more than a couple times. Whether you are young and attractive or not, although of course that helps.
Does losing $5,000 alone on a blackjack table in Prague because you're depressed, and then smiling and tipping your dealer constitute visible distress? I can't say it's always a financially wise strategy.
Hi, I’m sure you would constitute a great bar neighbor :)
I just spend a few minute refining my thoughts on tipping outside the US : I would say it has to do with a relationship with money and the power emanating from it.
Tipping is not expected in most places; and doing it anyway clearly signal that you have some disposable wealth. You can afford to pay even more than the agreed upon price.
There is some “bling” and nouveau-riche aspect to it that will leave people a weird feeling.
For instance :
Are you trying to bribe them? Do you think they are too poor to function without your patronage? Are the price/money here just a joke to you?
And then, it become your edge. You are the guy or gal that pay extra. As opposed to be the funny/sexy/mysterious/resourceful person.
AKA : El gringo, l’américain, l’americano. ( I’m one of you now, so I can say it :p )
Being seen that way might be a way to attract the wrong kind of company.
I don’t know about casino and hazard games, my passion always has been the dives and the likes.
But you do say something important about establishing contact first.
That’s a great difference in my book.
I still maintain that waving money around FIRST won’t help on the long run.
Establishing rapport and discretely paying extra might, sometime, with some people.
But being nice and aware of your environment might do just the same.
Hah. I definitely would buy you a drink. Please see my post below (next to yours).
I'm 42. I've lived in a lot of countries. I freaked out and fled America for twelve years after I wrote a novel about a rock band assassinating Dick Cheney during the start of the second Iraq war, and had my server attacked by military sites and my apartment broken into and police going through my trash can. In other countries, I probably, once in awhile, was mistaken for someone who tried to be nouveau-riche because I tipped too much...but I'm basically a working-class guy and I don't think most people thought of me that way if they got to know me. Maybe I am guilty of carrying over the American service industry mentality -- usually people who work/worked as waiters, bartenders or taxi drivers in America tip much more than other people, because we understand how difficult the job is. But of course, you are not trying to buy love with money ... you only show respect. If it is a situation where I feel that someone won't understand it (for example, in some place I've never been before in Vietnam), just the amount of tip that shows the right respect is better than some crazy American-size tip.
Hopefully this makes sense. I should stop drinking and go eat. It's been a pleasure to talk ;)
[edit] PS: I really enjoyed this term "social alcoholism". Did you ever go to Granada?
I live in New Orleans those days, social alcoholism is a lifestyle there! I haven't been in Spain in a solid decade. I miss traveling and living in europe. It's so pleasant.
To get back to the subject at hand, I think you gave enough context so I can understand your point. Thanks!
It looks that the key is being ex-service industry, and now that you stated it... I do see that behavior of "service-industry hardcore solidarity thought tips" in friends here.
> usually people who work/worked as waiters, bartenders or taxi drivers in America tip much more than other people, because we understand how difficult the job is. But of course, you are not trying to buy love with money.
And I can sense the likability oozing out your messages.
Good on you for moving to NOLA! It was my dream. Actually I still would love to live there. I think it's the only really European city in America. Scary, a little. (I live in Portland. it's hip, it's gentrified, it's terrible). So you know the service industry solidarity.
I quit my waiting job in New York around 2004-5, took a train to New Orleans, started playing piano with a band, got a job as a busboy at Brennan's for a solid 2 weeks before losing all my money on poker and drinking myself almost to death... I found myself on Canal Street one morning at 5am, broke, and called my sister from a payphone to buy me a bus ticket to LA. Six months later the house I'd been staying in was destroyed by Katrina...
Is it time to try again? I've always loved that city. I don't think I have the self-control.
Here is France. Rounding up to the euro or nearest bill if it’s a large sum is considered a nice gesture but is not usual nor expected. If you tip 15%, people will wonder what’s wrong with you and don’t understand why you flaunt your money (or assume you are American).
You'll get that in some places, sure, but not everywhere. In Norway if people see waiters/bartenders/servers treating other people better, they'll stop going there because the idea is that everyone should be treated equally. And bars are highly regulated - pouring stronger drinks than allowed is a quick way to get your liquor license revoked.
Maybe if it is regulated to such a tight degree; in American bars it's understood there will be "spillage" and bartenders are even encouraged to keep good customers coming back. Generally speaking, if you tip consistently well in most cities in America, and know your bartender, they will make 1 out of 4 drinks free for you or they will otherwise find a way to pour you strong drinks. They know how much they have to spill and they can justify it for a good customer. Only in Las Vegas casinos is this ineffectual, because the liquor bottles are all measured out electronically.
@courgette, I can't reply directly but I'd say (as a longtime service industry worker) it has to go along with genuine respect from the customer, and you have to like them. It has to be a true gesture. It's not as transactional as I'm making it sound when I'm trying to explain it to people who don't tip, never tipped, and don't come from cultures where tipping is normal. Tipping is part of the respect you pay to the person who's serving you. Equally important is looking them in the eye, thanking them, being a polite guest. You'll get no argument from me that simply tipping is not enough to buy someone special treatment.
[edit] also, although I'm not service industry anymore, many of my friends are; so it's pretty understood that no one likes an asshole who just thinks they can "buy" someone with tips. That wasn't the point. Tips are necessary because I really do appreciate what servers are doing.
Tipping in a coffee shop is just yet another way to obfuscate real pricing.
Instead of asking $5 for a coffee they ask for $4. Then you have to pay tax, which for absolutely ZERO reason is not included in the price. You're at about $4.40. Then you tip and end up at anywhere between $5 and $5.50 in actual money you spent on your "$4" coffee.
Sorry, I've lived my whole life in Europe in three different countries and have never been to a café where you can't pay in cash and don't tip. Tipping works differently, e.g. in my current country of residence you leave cash on the table, but unless your bill is very low (say, below 5 EUR) not tipping is still a bit rude. There used to be no tipping at all but with the increase in tourism that's no longer the norm.
That's how we roll in the states. It doesn't matter that every other country on earth has been doing it a certain way for over a hundred years without issue, because we don't do it that way it is clearly a dangerously unproven method.
it's almost like that coffee shop will need to compete against other coffee shops in the US that operate differently and might be seen as having an advantage, comply with US laws, and - as they discussed here - communicate to customers their salient differences - and that HN is the kind of place that might be interested in such things.
> and give customers an option to donate to a charity if they still wish to part with additional money.
Please no. That's how it usually starts. It was with small change but now McDonalds harasses you every time you make an order to round up for some charity I never heard about. I'd donate to charities on my own.
Needless to say I avoid these places like the plague.
I know what you mean. When the cashier at Whole Foods asks you, it does feel somewhat petty to say no. I think there was a South Park episode on that.
But if the POS asks you, it doesn't feel as personal to turn down the option to donate, don't you think?
Anyway, not married to the idea, but I think there are some people that enjoy the endorphins that result from contributing to a charitable cause (especially when discretionary spending, like on a latte).
I think of it differently. Ads pervade your experience. You cannot pump gas without since video blasting in your face. You cannot buy groceries without hearing about the poor, pathetic children who this billion dollar company decided to collect money for. Hell, I was sitting on the ski lift the other day and the bar across your lap someone has added little advertising signs saying which is the best pro shop.
My point is, we are surrounded by useless requests for more of our time and money. I go to the coffee shop almost exclusively as a place to relax. There should be less intrusion into my headspace there, not more.
I think there is a distinction between a charitable donation pop-up that forces the user to round up, donate, or actively select 'no donation' is a dark pattern.
Whereas having the option to select a charitable donation, or passively ignore it, as a part of the normal checking out is fine.
Yeah, if these donations where accessible via a different menu (ie: you have cafes, cake, juices, donations) then I'd be fine with it. I'd go to the donation individually if I want to.
The problem is when you put the donation at checkout to "improve" conversion.
Nag-screens are awful but they do also need to explain their tipping because it creates customer confusion. They could simply put up a sign up that says "We pay our employees a living wage. We don't accept tips, but you can donate to our staff's preferred charity XYZ at URL."
> It was with small change but now McDonalds harasses you every time you make an order to round up for some charity I never heard about.
To be fair, the McDonalds charity is actually totally legit and really awesome and you should donate to it. It's one of the few exceptions to the general rule that these charity promotions are usually suspect tax laundering schemes.
You can avoid something like a much worse thing, that's not a problem. Avoid being insensitive with your bad thing reference, but "the plague" is not insensitive.
But lots of people won't think to do so, and it can raise awareness too. And in terms of payment processing fees it is probably much more efficient to include a small amount extra in a larger preexisting transaction and pool it up across customers than if everyone were to go out and donate $0.50 or whatever on their own.
The problem is the store charaties are always awful. I donate to local charities that actually do good work with it (Non-affiliated-beyond-being-donor plug: https://www.nuci.org/), not to bloated “awareness” charaties like Komen.
I assume the main point of asking for charities at the POS system is to, in no order, a) give to that charity, and/or b) to get the tax deduction as if the company gave that charity. Ex: $1 charity = some $0.35 discount on company taxes.
And "awareness" is a big part of some cultures [0] as it allows for the distribution of the idea of caring without devoting some of one's life to the cause.
I don't think you get a tax deduction by processing someone else's donations. Even if you did, wouldn't you have to first treat it as income, so it cancels out?
Income $1 and then give away that $1 is a net negative, so I assume it's more like: I give you, the company, $1 as a "gift", which I'm allowed to gift you some hundreds of dollars per year without an extra tax form. You take that "gift" and donate it, thereby netting you the 35 cents.
Upon some light internet diving (backstroking), it appears that the company cannot deduct the customer's donation, according to a couple random websites.
There's a beer here in the SF Bay Area that words its charitable claim like "up to 8% to local causes", which can mean anything from doing nothing at all to earmarking 8% of the revenue for their new yacht which is parked locally.
I am pretty sure it is illegal. It is the donor that may claim the tax deduction, if any. The retailer may not claim it merely by being a conduit for donated funds.
Really, St Jude Children's hospital is awful? Would you like to give some sources for that? That's the only charity I get asked about often enough to remember and I'm happy to see companies going to bat for them (at least unless someone such as yourself manages to convince me of how awful they are).
The review feedback program sounds like over engineered nonsense. You get metrics which you think represents customer experience which you can use to evaluate and motivate your employees to act a certain in this coffee fueled skinner box designed to train baristas. But the data won't represent that, the interaction with a barista is only a small fraction of what makes a coffee shop good (first should be good coffee, second probably a nice place to sit). And the obvious conclusion is that the barista tells the customer, "if you want to leave a tip please give me a 5 star rating, my salary is based on ratings." So now you just have tipping with extra steps.
If all you care about is rewarding employees who are good, Why not just do profit sharing for employees who been around longer then x months?
While profit sharing may work as an incentive for shift managers or store managers, in the absence of tips most baristas will expect some other immediate bonus pay, preferably based on a measurable metric that doesn't depend on factors beyond the barista's control, such as cost of goods sold, supply chain constraints, rent hikes, recessions, etc.
If you occasionally ask the customer in-app "how was your service today?" with a simple thumbs up/down option, and you associate the order's rating with the barista behind the counter, you can get a good metric on their interaction with customers. You'd probably want to use the median and not the mean in order to remove any outliers.
Wouldn’t you be measuring the interaction with the ordering device? How can I rate the experience if I didn’t interact with the Barista yet?
One of my general problems with tipping is that I have to tip before someone makes the drink. Then end up with burned coffee I tipped for. This feels the same.
The feedback option would be shown on the customer’s phone the next time they open the app, in regards
to their previous visit.
If the customer ordered via the POS, it will be shown on the next visit, if they sign in with their phone number (which is used to save your order history for easy reordering).
I don't want to give feedback for such minor transactions. I just want a coffee. Why do you want to make me do actual work? Giving feedback, especially if it's supposed to be taken seriously, is work, and worse, it feels so utterly pointless. It's such a simple transaction, and this way overcomplicates it.
I had a shop too once (print, Germany, sold it after a few years) and know people owning restaurants. As far as I'm concerned, you are supposed to get your feedback from the "meta data" of your business, not involve the individual customers my making them work. Which is very unlikely to give you true and/or good data anyway. It's like asking people for what they want as "market research", which just shows a lack of understanding of how brains work and way too much believe in the rational mind theory.
It's like you have never been in a coffee shop. A coffee shop needs good vibes, a good coffee supplier, and a cash register. It doesn't even need an espresso machine. The best coffee shop in Oslo only uses aeropress. But it also needs baristas who like coffee and appreciate the chemistry of it.
You seem to have created the anti-human coffee shop.
You don't need my number to sell me coffee. Asking for it is an invasion of my privacy. If you insist on an awards program of some kind, it already exists in it's ultimate form, the stamp card.
Customers should not be tasked with evaluating employees. They have no expertise in the matter.
Employees should not have wages effectively stolen from them under the auspices that "good work is rewarded". You know how you reward good work? Raises, profit sharing, more responsibility, benefits programs, you know typical things employers do for employees in a worker centered environment.
All this also assumes anyone uses these systems as intended. I doubt customers will select ratings in any meaningful way and you will have no way to ground truth if they do or not. Nobody will ever care enough to sit through customer interviews to evaluate whether your one question survey is valid or not. Certainly not for a cup of coffee.
Actually what you've done is devised a system for you to steal you staff's tips.
Instead of customers having the option to pay extra in the form of tips, you're charging more. By having a review/bonus system, you're still absolving yourself of the responsibility for fairly compensating your staff. You're shifting the burden of evaluating employee performance onto your customer. And you're incentivizing yourself to limit bonuses because that money goes into your pocket.
I don't feel like you responded to my comment. If you are paying a reasonable wage, profit sharing is a bonus. You are creating tipping with extra steps.
Profit sharing only works if you stick around long enough.
In the service industry, and especially amongst young people, it's common to pick up a job like this for a few months and make some money, then move on to something else. And that's okay, not everyone wants to make a career out of making coffee. It's still a good formative experience to have, while earning some money, and there's no reason why you shouldn't do it right and get rewarded for it.
But profit sharing won't work for someone that is around for a summer. For instance that person could benefit from any upswing caused by previous employees, but if they don't add a positive contribution to the customer experience themselves, they won't be around for the long-term impact. And if you don't give them an incentive at all for the first few months, then you're back to square one. Or even worse: they could negatively impact the profit sharing of employees that have been around for the long run.
Ultimately, money is a motivator and pretending like it's not does not make tipping go away. The problem with tipping as I see it, is that it masquerades the real cost of doing business.
Then you are hiring the wrong people for the kind of coffee shop you claim to desire running. There are plenty of people who enjoy coffee enough to make a career out of it even if it's for a few years. You are pitching this evolved, pay every one a fair wage, this is a real place to work that's super cool, and then treating them like it's some chain. It's transparent. You don't expect them to work with you longer then a couple months. You want customers to track whether employees are doing good or not trying to create some BS KPIs or whatever and then use that to incentivize your employees. Everything you write in every one of your posts demonstrates that you seem to miss the entire point of a coffee shop. It should be a cool place to relax and read or work or meet friends while drinking coffee.
> In the service industry, and especially amongst young people, it's common to pick up a job like this for a few months and make some money, then move on to something else.
By making that assertion you're absolving yourself of responsibility and shifting the retention issue entirely to the employee. You're completely dismissing the possibility that your retention issue is due to a customer culture you fostered or created, a poor work environment due to a manager or toxic employee, the demands of the job vs compensation, or any other factor.
> Ultimately, money is a motivator and pretending like it's not does not make tipping go away.
Money is a motivator but not necessarily for the right reasons and it has diminishing returns. Tipping culture has evolved from a mechanism for customers to thank staff into a means for staff to make up for insufficient wages. They're effectively panhandlers.
If an employee relies upon a tip to makeup for wages, they aren't paid enough and are being exploited and abused.
Today, not tipping is a punitive measure that allows customers to diminish an employee or staff's wage at the customer's discretion and without any insight or feedback provided to the employer. People feel compelled to tip because they thing employees aren't paid enough, not because service was above expectations.
> People feel compelled to tip because they thing employees aren't paid enough, not because service was above expectations.
You had me until this point. No, this is some people’s belief, but not all. I certainly don’t think people are underpaid when I tip, it’s entirely based off service.
It's unfortunate that you're willing to dismiss everything I said because of a generalization that spoke in absolutes.
There will always be people who disagree, but if you're in the United States and believe that service workers are not underpaid then you either only patronize high end restaurants or are completely out of touch with the average American.
If you spend any, and I mean any, amount of time researching tipping you’ll find the market research. It’s proof you’ve done no research yourself just spouting personal beliefs as if everybody feels the same (this day and age of all).
I tried this when I started my popup restaurant. I rolled taxes into my prices, and didn’t ask for tip when collecting with Square. I did this because I love the simplicity of dining in Europe, where you pay exactly the price you see, and don’t get guilt tripped at the register.
My customers complained that my prices were too high. So, I lowered my prices, added tax, then asked for a tip. About 50% of people tip, so my profits have actually gone up on average after this adjustment. People seem to be buying more, too.
I hate it, but this model seems to work better from a business perspective, despite it being a worse customer experience (subjective, I know).
How do you train your customers not to have sticker shock? Do I need to hang a banner that says “TAX AND TIP INCLUDED IN ALL PRICES” in comic sans?
It would be simple for me. I would refuse to go to your restaurant because dealing with multiple systems is too much work for my feeble mind. And my wife tells me I'm better with math than the common person.
Your system is better. But it's special. Special is bad because I don't like having to do things X different ways for X different restaraunts. I would rather pay a little more and not have to remember the quarks of your restaurant. I am also just trained to tip so I will feel icky leaving your restaurant no matter if you are paying them a fair amount already.
So if you charge more money to include the tip I will still feel obliged to tip anyway and I will leave with the experience your restaurant is too expensive and not come back. In short I think you've done the right thing. Don't fight the mob, embrace it.
Not accepting tips is one thing. But not accepting cash means you will never have me as a customer.
Edit: I've already walked away from a dozen different food places in airports because of this kind of trash: please install this app, can't pay in cash, can't see a menu without scanning a QR code, use an iPad with shitty touchscreen that I can barely see or use...
I just wanted to order some food and pay with legal tender.
It's also illegal if they give you the item before you pay. Cash is "legal for all debts.' So if they let you establish a debt (by, for example, drinking some coffee), they must let you settle it in cash,
"Contrary to common misconception, there is no federal law stating that a private business, a person, or a government organization must accept currency or coins for payment. Private businesses are free to create their own policies on whether they accept cash, unless there is a specific state law which says otherwise. For example, a bus line may prohibit payment of fares in cents or dollar bills. In addition, movie theaters, convenience stores, and gas stations may refuse to accept large denomination currency as a matter of policy or safety."
"The principal purpose of [the Coinage Act of 1965] is to ensure the nationwide acceptance of U.S. currency, consistent with constitutional language that reserves to Congress the power to create a uniform currency that holds the same value throughout the United States. While the statute provides that U.S. money is legal tender that may be accepted for the payment of debts, it does not require acceptance of cash payments, nor does it provide that restrictions cannot be imposed upon the acceptance of cash."
You're missing an important distinction: Cash is legal for all DEBTS. Nothing says the store can't refuse to take cash, as long as they also prevent you from establishing a debt. For example, a restaurant that doesn't want to take cash must force you to pay before you eat.
Yea, basically this is a data collection front end. I too hate where you can't pay without cash though I'll bend if no other alternatives are avaialble.
Somewhat of a meta-comment but I’m shocked at how many people are complaining about you not taking cash.
Has anyone ever walked out of your coffee shop because they only had cash on them? I can’t remember the last time I paid or even saw someone pay cash for anything.
Cities are making it illegal, as they should. It's not always meant in bad faith, but it's also a form of gentrification that hurts the poor and unbanked by removing yet another service from them.
I personally never use anything but cards since I have many of the high reward credit cards. But I've also had family members with tax liens or other problems that didn't allow them to get a bank account, that relied on family to pay bills, order things online for them, etc.
I saw one of those “mind blown!” sorts of posts on Facebook the other day that I haven’t been able to really reconcile in my head because it both makes sense and doesn’t make sense.
The gist was that if everybody is paying with credit cards, $50 will eventually whittle down to $0 because AmEx, et. Al. got $50 worth of fees after so many transactions (accountant pays grocer who pays dentist who pays hygienist who pays daycare, etc.). On one hand, what a huge waste of money. On the other hand, I as the consumer typically don’t get a discount for paying with cash, so why shouldn’t I take advantage of the “free” and secure payment option available to me?
This feels plausible but I think it is really nonsense.
Processing fees are not unique to cash. Banks charge cash processing fees to businesses too, and have for ever. Most shops will deposit all the cash received at the end of the day - perhaps every few days - with a bank.
That's true- everyone with a checking account pays a "fee", even if that's in the form of "allowing the bank to loan your money out to make more money"... except for maybe USAA. Their checking accounts are free, no account minimums, and they even pay a little bit in interest. Not just anyone can get a USAA checking account though so I guess that doesn't really count.
So long as you don't use a brick and mortar bank, most banks have interest providing checking accounts, although rates vary wildly.
Savings accounts in particular are egregiously terrible at brick and mortar banks. I made more in interest payments in my first month at Ally than I did in the ten years I had my child hood savings account at Bank of America.
TMobile Money was fighting Ally pretty hard when rates were rising and had me switching money back and forth for a little while. Goldman Sachs traditionally fought with Ally. Doctor of Credit has large lists of smaller banks with favorable rates. It's just the traditional large brick and mortar banks rip off customers who just assume having money in a savings account is a good thing to do.
I wasn’t aware T-mobile had a bank. You’re absolutely right about savings accounts, it took me a while to explain to my wife how you lose money using the traditional ones.
Those cash processing fees would only apply if the cash was repeatedly deposited and withdrawn, and probably only by businesses. The hygienist can probably deposit cash for free, I don't think I've ever paid a fee into a consumer bank account.
Taxes will do the same, though. Employers have to payroll taxes, employees have to pay income taxes. The $50 will eventually all bleed back to the government.
The $50 in fee is paid to the employee at AmEx (99%+ of it), then the last % is paid into dividends and such, which people will use to buy grocery etc. In that way, the loop closes and why the point doesn’t make sense.
The fees get distributed elsewhere geographically, and never make it back into the local economy. Sure, the money doesn't disappear, but the locals are worse off for it.
This is the crux here. And this is what I tell people who are so insistent on highways and cars too - the productivity of your local economy is siphoned off because local coffee shops can’t afford to compete with Starbucks drive throughs so the capital leaves your local economy.
Where I live a Starbucks was opened across the street from a local coffee shop and the Starbucks closed because it couldn’t compete. This is in a walkable neighborhood. Once you get to the ‘burbs and highways it’s all Starbucks.
Those transactions are usually taxed too. And in my experience cash discounts come from off the books transactions, ie tax evasion. Handling cash in business has a non zero cost too.
credit cards are pure evil. And yet I have 2. What's worse is that they raise the cost at stores, payed for by people who don't pay them off on time. I'm no socialist, but that's certainly not progressive.
It’s about getting robbed for drug money. The irony being that our huge population of visibly unhoused in our neighborhood (unlikely to have bank accounts) also correlates to the problem of being robbed for cash..leading to businesses not taking cash anymore for safety reasons.
In civilized countries they solved this decades ago by allowing the postal service to offer simple bank accounts.
It's totally a fake problem that untrustworthy people can't be trusted in modern times with bank accounts. The risk is check bouncing. People don't "need" checks anymore though to function in the cashless world.
We already have prepaid card accounts that don't allow you to spend money you don't have. The only catch is that they're run as profiteering machines which extract fees at every turn.
I guess what I'm saying is, let USPS run an operation (like Green Dot, Vanilla, etc.) but with a fee structure based on the true cost of the service only. And the government should give Visa and Mastercard the choice of:
1. antitrust suit to break them up.
2. the USPS cards will be a V/MC, and V/MC will give them very deeply discounted interchange rates
3. a new independent USPS card network with low fees will be built AND commercialized for any issuer to use, and a regulation that anyone who accepts V/MC must also accept that network.
Checks aren't a thing in most of the world. Opening a bank account is hard because of know-your-customer laws.
The civilised solution to this is very simple: cash! Until you get you bearings and have a bank account opened, just use cash.
Tourist in a country where your debit or credit cards don't reliably work or come with extra fees? Cash!
Buying a second-hand piece of furniture from someone else, and don't feel the need to expose more information than necessary? Cash!
Electronic payment system goes down while you are in the queue at the supermarket? No problem, because you always carry a little cash for backup. (I've had this happen to me several times.)
Cash is the ultimate fallback in civilized society, and worth protecting.
It’s very hard to get denied a checking account, even with walking away from multiple accounts with negative balances. I’d bet they didn’t try hard enough or this is a lie.
In Germany a free account is a right, but recent immigrants often struggle because banks require a registered address, a residence permit, or a biometric passport.
A recent immigrant from countries that don't issue biometric passports (like India) might struggle to open a bank account. I had to devote a lot of time to finding loopholes for my readers.
America has a substantial underclass of undocumented migrants who would presumably not be interested in getting their KYC info and employment details put in a big database.
The status of such migrants is (AIUI) a fraught issue politically, and I'm not sure you can resolve the issues of the unbanked without resolving it.
OK but it is an issue. How about solve that decades old problem before turning people away and insisting that whatever payment processor take some 2-5% of your purchase. It's a complete digression of technology.
This. I am a legal immigrant and have the papers and job to open an account. Some of my relatives aren't so fortunate so I have opened accounts in my name which they use as theirs. It get convoluted and I would rather I didn't have to do this but you are right it is a form of gentrification.
Even legal immigrants struggle with this. It's hard to open a bank account during your first few months in a country, as you might not fulfill the basic requirements set by banks.
At least it's a serious issue in Germany, especially for Indians whose passport is not accepted by many authentication services.
> hurts the poor and unbanked by removing yet another service from them.
There are plenty of much poorer countries where cash has pretty much died out.
Imagine driving along in some mountainous, rural area in China. You stop at a little roadside shop in the middle of nowhere. You pull out your paper Renminbi bills to pay, and the shopkeeper looks at you like you're crazy. Everyone uses their smartphone to pay for everything, and yes, everyone has a smartphone.
If it's possible to transition entirely to digital payment in a country that was part of the Third World just one generation ago, it should be possible in the US.
Let’s not for a split second pretend that many if any of the people complaining in this thread are doing so for this reason. At best their reasoning is verging on a conspiracy theory, at worst it’s just a typical old American man aversion to not using cash.
I agree with you that businesses should accept cash for the reason that you’ve noted. The underlying problem is fuelled by the almost unique dysfunction of American bureaucracies. This is in cases where the systems aren’t maliciously designed to lock people out.
So I've started carrying cash because in NYC, most places now have 3-5% "Cash Discount which is already applied to the price" which means a 5% fee for using your card.
I go to a bar that is cashless and still see people have to leave because they only had cash (or didn't want to use their card).
To play devil's advocate, credit cards are another way to get tracked, a great way for a duopoly of companies to skim 1-3% off the economy, a way to be analyzed by the merchant, a way to get more explicitly prompted to pay a 20% tip, and more hassle than handing a $5 for a $4.73 coffee and walking off.
"Imagine these magical tokens with monetary value that I could instantly transfer to a merchant without waiting for my bill to come back!"
Going cashless only benefits the owner for not having to deal with counting cash, with potential worker theft, and (slim concern) robbery - things that, depending on the area and the market, are theoretical.
At the same time, I think it's neat that street performers and buskers have QR codes to Venmo. I think everyone should accept everything.
In defense of cashless, there is so much you don’t have to worry about as the business owner; yes the credit companies take a somewhat exhorbitant percentage but you don’t have to worry about having thousands of dollars in cash at the end of the day, don’t have to worry about employees skimming or making mistakes like coming in short. It also automates a ton of the accounting. So there are some benefits.
On the other hand, you have to worry about disputes and chargebacks, of which you can only accumulate so many with your processor, and which also tend to have unfavorable outcomes for merchants.
The pros may still outweigh the cons, but it’s not all roses with cards.
I can’t put any numbers to this, but yes, it’s probably the case that as the ATV increases the dispute rate also increases, and probably particularly rare in the food service industry.
In my experience it can be rare even with an ATV in the thousands of dollars, but it’s still (unfortunately) a non-zero risk.
Yes - it's hard to automate because it's offline, it's higher risk because you have to show your face, it's usually low value products, and if there's any issues people usually go back to the cashier and then void the transaction - removing a large part of refund costs.
> and (slim concern) robbery - things that, depending on the area and the market, are theoretical.
If your bar is being hit every week for robbery, the chance is no longer theoretical or a slim concern. Not sure about that bar, but marijuana dispensaries here get hit weekly because they are a cash only business. If the feds allowed it, they would go card-only very quickly.
>I go to a bar that is cashless and still see people have to leave because they only had cash (or didn't want to use their card).
I wouldn't patronize such a place because I'm not comfortable surrendering my credit card for an indeterminate amount of time, nor having any idea of how much money I've spent until I'm about to leave.
> I go to a bar that is cashless and still see people have to leave because they only had cash (or didn't want to use their card).
And I see the same issue when I go to places that only take cash: people have to leave because they only have a credit card. Or they pony up some ridiculous fee to take cash from the ATM in the bar.
> credit cards are another way to get tracked
I personally don't care too much about this, but I can understand why some might.
> a great way for a duopoly of companies to skim 1-3% off the economy
Put another way: a way for a duopoly of companies to get paid for providing a useful service to both businesses and customers. Now, you can argue that if there was more competition, fees would be lower, and I wouldn't disagree with that. But it's a bit disingenuous to suggest that the card networks are just taking and not providing any value.
> a way to be analyzed by the merchant
Basically the same as your tracking argument. Some care, some don't.
> a way to get more explicitly prompted to pay a 20% tip
Shrug? That's life? I feel pressured to tip regardless of how I pay. At least with the POS terminal I don't have to do math.
> and more hassle than handing a $5 for a $4.73 coffee and walking off.
It's pretty rare that I see a bill for an even amount of money. It's way more hassle to have to dig through my pockets for exact change, which I never have, so in reality I'm passing over a larger amount and waiting for the cashier to make change for me. And then I have to decide how much of that I want to leave as a tip. That's certainly more hassle than just tapping a card and a tip amount, and walking off.
If a place doesn't accept cash, I leave. Cash is one of our last remaining bastions of freedom. I would gladly pay by card, if those cards were anonymous, refillable with cash. But these do not exist anymore, even for small amounts. They insist they must know your every last $0.50 transaction.
If a place doesn’t accept credit cards, I leave also. I just don’t carry cash anymore. To each their own.
They mostly do it for safety reasons. Being a target for being robbed for drug money just gets annoying after awhile. Getting rid of cash gets rid of that risk. They might lose some customers, but losing workers to stress about being robbed is a bigger problem these days.
It also costs money to handle cash. You have to count it at the end of the shift. And store it. And transport it to a bank to deposit it, which takes time ($$) and resources (gas, etc)
I get your point, and I do think it's great for many people that we don't lose this outright, but I will offer an alternative view -
Where I live, there always were a lot of people who don't report their income fully, which means they mostly transact in cash. We have fairly high and progressive taxes, which means that by transacting in cash, some medium to high earners can lower their tax payments significantly.
After trying basically everything over many decades, the clear plan by to government is to make cash transactions obsolete as soon as possible. They've been slowly reducing the maximum legal cash transaction size for a while now, but the goal is clearly to get rid of cash.
While I worry about people without access to banking (mostly people without documentation, but also the poor), I think they're on a course to resolve that too, and I for one would be very happy to not have to pay that much in taxes while seeing others cheat the system and reap the benefits...
I prefer paying cash. It is also elitist to not accept cash because it means I need a credit card or an expensive phone, neither of which I have on me while jogging.
I also don't jog, but you get the point. At my gym I had a keychain bar code that worked great. Now I need my phone, phone charged, brightness up, their stupid app, signed in, open it up, click check-in. It turned a 2 second 1 gram device in to this whole thing. Why?? What a waste of technology and time.
I frequent taco trucks and places that prefer cash and almost no places that don't so I have ~$40 in my gym bag and neither of my 2 heavily used credit cards.
I will have maids coming over tomorrow for the first time in a millennia and I will pay them however they prefer and I'm assuming that's cash. Card is amazing, but cash has its place it bothers me to see it sidelined.
I think you're ascribing malice to something that is largely a function of cost, safety, and hassle.
Yes, credit card fees are not free, but:
1. Managing cash is not free either. At the end of the shift / end of the day, you need employees to count cash and reconcile the amounts with receipts. Cash in excess of what the business wants to keep on hand needs to be transported to the bank and deposited, which costs employee (or manager/owner) time.
2. Businesses that accept cash are bigger targets for (possibly violent) theft. Your minimum wage barista might appreciate not having to worry about someone coming in with a gun and ordering them to empty the register into a bag, if there is nothing to empty into said bag. Transporting cash to the bank is another point where you can get robbed.
3. Related, there's also the risk of being paid with counterfeit bills. Granted, there's also the risk of stolen credit cards being used, and the business is usually forced to eat the cost of that. So this might turn out to be a wash (or perhaps, I suspect, this is actually worse with credit cards).
Certainly, from the customer's perspective, credit cards are a privacy leak, and require a good credit score or at least a bank with debit cards, and some people don't have access to either. But I think the solution to the latter is to make banking more accessible to people (I think allowing the post office to be a bank to anyone who needs it is a great way to make that happen). Not sure how to solve the privacy leak, though. Even with (unlikely) strong legislation against data collection and sharing/selling, there's always going to be a purchase trail.
And your point about jogging (or not-jogging) just doesn't make sense; it's far more convenient to carry a credit card when jogging than to carry cash.
> Related, there's also the risk of being paid with counterfeit bills. Granted, there's also the risk of stolen credit cards being used, and the business is usually forced to eat the cost of that. So this might turn out to be a wash (or perhaps, I suspect, this is actually worse with credit cards).
I'm curious if credit cards actually are worse. I haven't had anyone ask for my ID to use a credit card in a long while. My hypothesis is that stolen credit cards are used online frequently, but rarely in person. Likely because it's easier to steal 10,000 credit card numbers online than in person, and because people are more likely to notice and report a card stolen if it's physically missing.
Letting people in to your store means they can steal stuff. Things that you sell can break. Windows are a hazard in your saloon. I have seen 1 single counterfeit USD in my life and i've worked plenty a register. I have seen innumerable amount of credit card fraud. There's pros and cons to all forms of currency, and not accepting cash does eliminate some of those cons but also its pros.
> I can’t remember the last time I paid or even saw someone pay cash for anything
For as long as not everyone has access to a bank account or credit card I'll be concerned about fueling divisions in society.
I'm not from the US, unlike the origins of this discussion, but also hear this statement and have no reason to doubt it is true. But if you step out of the wealthy areas or even just look a little closer then the users of cash are visible.
Remember: this is HN, where the bubble effect is strong. On Hacker News, everybody "knows" that Google Search is useless these days and that Amazon results are all counterfeit junk, even though in the real world I have never heard anyone bring this up and these services are still incredibly popular. It's the same thing with cash: I don't think I've seen anyone pay with cash in years. Even the old people at the grocery store use chip-and-PIN cards.
> I don't think I've seen anyone pay with cash in years. Even the old people at the grocery store use chip-and-PIN cards.
I'm not sure where you live. I work in a fast-food place on a college campus. While the students generally use their meal-plans to buy food, the moment we have a "parents' weekend" or similar event, we do a lot of cash.
It is generally poorer people (who don't have access to banks) who have to use cash (or resort to alternative banking systems that charge exorbitant fees).
A few companies around town here in SF Bay Area started doing cashless and the community saw it as a red flag as it clearly disadvantages certain groups in our community. A couple of those places I frequented took back cashless from said pushback.
According to this [0], it's illegal for retail businesses to not accept cash in San Francisco, Philadelphia, New York City and the states of Massachusetts and New Jersey.
Remember that this is also an American bubble at times. In Germany, cash is still king. You can't go long without 10€ in your wallet.
Tangential: I'm surprised that no one complains about these things. Google Search has become unbearable and Amazon is obviously bad these days. There's no way people aren't getting annoyed by the tech they use every day, yet you're right, no complaints.
Germany's certainly a contrast. As a counterpoint from another end of the scale, I'm in Sweden and it's so cashless that the US seemed cash-heavy to me on a visit a year ago. I saw people pay cash in a restaurant and I even saw a public transport machine that accepts bills, things that would be a very unusual sight in Sweden. Here, the bills were changed five years ago and I'm not even sure what they look like.
In Australia I haven't bothered to take any cash out in about a year, many businesses don't accept cash, and everything still seems to function just fine.
Many stores I go to in rural america ONLY accept cash or check. The areas are so poor they refuse to pay the credit card fee. That and I suspect there's a lot of tax evasion going on.
From what I've observed, a tiny fraction have left because of the no-cash policy, probably under 1%. We were expecting 5% to 10% in the first weeks, since customers that walked in for the very first time wouldn't have known of the policy.
From the ones that left, most said they didn't have a card on them at the time and they'd return another time, but we did get a couple of people that did leave because they didn't agree to the policy.
I sometimes did the opposite, when living in Germany. I'm not gonna bother hunting for ATM (and usually pay commission with that) just to have a privilege of spending money at your business.
That is a pretty fringe worry of tracking that places a major burden on the business. While I am no fan of the amount of tracking going on, I'd say this is pretty far down the list. You're still tracked when you pull out cash. Credit cards have quite a bit of protection on them.
Should this really be far down the list of privacy concerns? My debit cards record every single transaction I make with them. Anybody motivated enough could find out exactly where, when, and what I buy. Seems like a pretty major privacy concern.
> It means somebody has to go to the bank each day to drop off the cash and collect change.
So... just like the past few hundreds years then.
> So it's inconvenient
So is taking out the trash. But are you going to complain about the janitor who gets paid to do it?
> and an unnecessary security risk to whichever staff member is required to do that.
Is it really so unnecessary? Moreover, is dealing with money ever not considered a security risk?
> Compared to not accepting cash and not having to deal with any of that, then yes it's a major burden.
Even not accepting cash is a security risk. Do you deal with your computer infrastructure? Card skimmers? What about cameras that take pictures of card information while being slid across the scanner? How do you deal with the security audits of the backend software? What about the background checks of the people who wrote the backend software?
You're falsely painting a rose garden. It's just a different garden, that's all.
> If you have the option not to, wouldn't you opt out?
I have the "option" to opt-out of things that I never opted into in the first place. It's ludicrous that I have to do "opt out" of something I didn't have a choice of being opted-into in the first place.
> Those are risks of accepting cards, not risks of "not accepting cash"
Yes absolutely. And those risks (of accepting cards) mean that I disagree with the implied statement that not accepting cash removes burdens. It simply shifted the burden elsewhere (onto the customer).
> I have the "option" to opt-out of things that I never opted into in the first place. It's ludicrous that I have to do "opt out" of something I didn't have a choice of being opted-into in the first place.
What are you even talking about? The context is that cash is inconvenient and costly to deal with. You said "So is taking out the trash. But are you going to complain about the janitor who gets paid to do it?"
To which I basically responded yes - wouldn't you opt out of paying the janitor if you didn't have to? i.e. reduce the cost of doing business - if we're not making trash we don't need to pay someone to take it out. Hey, let's not make trash!
Your response doesn't make any sense in that context.
> those risks (of accepting cards) mean that I disagree with the implied statement that not accepting cash removes burdens
It's not implied, it's flat-out stated. Taking cash involves a variety of extra costs, risks and infrastructure. If you don't take cash you don't need a cash till, you probably don't need a safe, you don't need to pay staff to count and reconcile it, you don't need to get it to the bank safely, or pay banking fees.
If you're going to take cards all you really need these days is a smartphone and a reader.
> It simply shifted the burden elsewhere (onto the customer).
So? We're talking about burdens on the business. If you feel that having to use a card in an unacceptable burden, then perhaps you don't use that business.
By the sounds of it, not many people feel this way. And it's quite funny in itself - given that it's far easier not to bother with cash as an individual too.
> What are you even talking about? The context is that cash is inconvenient and costly to deal with.
You replied with a non-sequitur so I replied in kind.
Asking about opting-out of paying someone? No, that's immoral. Only scumbags would consider asking that let alone actually do it.
Asking about opting-out of using cash? No, that doesn't make sense given that I've clearly stated that I won't be a customer of businesses who have.
Asking about opting-out of taking out the trash? Nobody likes trash to pile up and I have a lot of respect to people who deal with it.
Asking about opting-out of being a janitor? I was a janitor for a long time. How does that make sense in the conversation though?
> To which I basically responded...
Your new reply doesn't include what you originally replied with. There's new context here and it changes what your first message meant to me. Here, have a new reply:
No, I am not a scumbag. People deserve to be paid fairly.
Further: janitors do real work that robots simply cannot do. I cannot ask a robot how their day was, how long they've worked there, what their hobbies are, or where to find the competing store. I can ask a janitor that though and perhaps even build a friendship.
> Taking cash involves a variety of extra costs, risks and infrastructure. If you don't take cash you don't need a cash till, you probably don't need a safe, you don't need to pay staff to count and reconcile it, you don't need to get it to the bank safely, or pay banking fees.
Taking cards involves a variety of extra costs, risks and infrastructure. If you don't take cards you don't need a card reader, you probably don't need internet, or have IT staff to manage all of that, you don't need to pay staff to count and reconcile sales, or pay processing fees...
Do you want me to go on? The risks aren't gone. They're just moved.
> If you feel that having to use a card in an unacceptable burden, then perhaps you don't use that business.
> You replied with a non-sequitur so I replied in kind.
No, I didn't, saying "If you have the option not to, wouldn't you opt out?" in reponse to your comment "are you going to complain about the janitor who gets paid to do it?" is absolutely not a non-sequitur.
If there is a business cost you don't have to pay, if you have that option, why would you not take it?
> Asking about ...
You missed an option there - not generating the trash in the first place, so you don't need to pay a janitor. That's the analogy with not taking cash - deciding not to create the issue in the first place that requires the costs and hassle.
> Taking cards involves a variety of extra costs, risks and infrastructure. If you don't take cards you don't need a card reader, you probably don't need internet, or have IT staff to manage all of that, you don't need to pay staff to count and reconcile sales, or pay processing fees..
As a small business you also don't need all of that, just a tablet and a reader. Everything else is already done.
We're also not talking about taking cash or taking cards, we're talking about the difference between taking both, or taking cards only, and whether that constitutes a reduction in hassle and risk.
Also this is not the same argument you were making before, which was that the burden was transferred to you the potential customer.
> The risks aren't gone. They're just moved.
The risks of taking cash are gone if you don't take cash.
If you're taking cards anyway, deciding not to take cash is an absolute reduction in risk and hassle.
> If you have a problem with cash... well usually there _isn't_ a resolution so why bother trying?
By this logic it's better to die than break a limb. Dead is dead but getting something fixed is a huge hassle. More nonsense I'm afraid!
> saying "If you have the option not to, wouldn't you opt out?" in reponse to your comment "are you going to complain about the janitor who gets paid to do it?" is absolutely not a non-sequitur.
Sure it is.
> If there is a business cost you don't have to pay, if you have that option, why would you not take it?
You are implying that a business could opt-out of paying janitors. No, that is not an acceptable business practice. Janitors cannot work for free, they are not slaves. And we cannot allow trash to pile up and things to go uncleaned.
> You missed an option there - not generating the trash in the first place, so you don't need to pay a janitor.
There is no situation wherein trash will not be generated. Likewise there is no situation where cash shouldn't be accepted.
> As a small business you also don't need all of that, just a tablet and a reader. Everything else is already done.
Sure, everything else is already done if your shitty small business offloads all of the work to the customer instead.
> The risks of taking cash are gone if you don't take cash. If you're taking cards anyway, deciding not to take cash is an absolute reduction in risk and hassle.
No, it's not a reduction in risk at all. It's offloading the risk to someone else.
> By this logic it's better to die than break a limb.
In the United States with the current state of healthcare, this logic is practically true.
Look, our discussion clearly shows that you might do well at increasing business profits. But your arguments are unable to reconcile basic compassion to your fellow humans. That's unfortunately common in modern businesses.
It's not illegal because of tracking worries, it's illegal because cashless businesses discriminate against the large population of under- and un-banked people who live in NYC.
It's even worse: I've spent time on the phone with banks trying to get my money back without any effect. I wouldn't have spent that time if I'd spent cash in the first place.
"It's gone forever without any recourse" certainly isn't exclusive to cash. And it can be expensive to even try.
Your cellphone is doing far, far more to profile you than any $5 spend at a local coffee shop would.
All a CC company would know is you like expensive lattes; your cellphone would know how long you stayed there, where you say in the joint, and how many memes you looked at before you left. And might overhear everything you say, including your order.
If you're using any sort of digital payment or points app on your phone it'll probably know your order, too.
Listen, most places should take cash, but this is silly.
Disposable gift cards are widely available in the US that will run as debit/credit without any need for identity verification. They are disposable, though, and as the other comment mentions aren't very economical (~1% outright in fees if you buy in $500 increments).
Is this only through a web portal that is tied directly to your bank account? Do you have a link?
Such a card, if it exist, would quickly be the most popular card on all churning and credit card reward forums.
Also if it exist but requires a bank account or Amex credit card to purchase, it goes back again to being pointless for the people who can't get banking services and rely on cash.
There are only 39.8 billion US banknotes in circulation, it can easily tracked in a Postgres database, banknote numbers when it exits the ATM, banknote numbers when they are redeemed by the baker, or by your drug dealer of choice, banknotes are only in circulation for one or two exchanges before coming back to a bank, it’s very possible that they are tracked to identify curious loops in circulation.
In fact, if they weren’t, that would be unprofessional from the FBI.
Easily? Tracking a credit card transaction is probably by far the easiest way to track money. And cash being the most difficult. And crypto being both easy and difficult depending on how it's used.
Sure, credit card tracking is much easier, but I wouldn't call the "most difficult" nature of cash to be all that difficult, certainly not for a state actor that heavily regulates its banks.
Please correct me if I’m missing something. You’re describing a map where the key is a note and the value is, a linked list of banks? I’m not clear what the point is that you’re trying to make.
I believe what they're saying is - we have the capability to track every physical banknote as it leaves/enters the bank and attach it to the person who deposits/withdraws it.
There may be extra steps in between, but if you're tracking a transaction / relationship type which happens twice or more, you can expect that the person on the record is the person you're after or can point you at them.
But I don't know why they expect FBI to actually have it implemented. The system would have to be so widespread/common that we'd know if it existed. I mean, there's https://en.wikipedia.org/wiki/Currency_bill_tracking but that's for hobbyists. Otherwise banks may check for duplicate numbers... but I can't find any mention of more widespread tracking.
The person who made this point addressed this already:
> banknotes are only in circulation for one or two exchanges before coming back to a bank
No, you don't get the 100% whole picture, but you can mine a ton out of data points like "note 38573204 was given to John Doe via ATM on 2023-01-10, and returned to bank by Jane Smith (owner of ABC Widgets) on 2023-01-14".
Many people don't, but businesses deposit excess cash daily.
Certainly, though, those same businesses keep a lot of cash in order to give change to other customers. But that cash will still likely end up back at a bank before too long.
If any of them worked sensibly as currency, maybe. But end result would probably be "the crypto transaction processor" most companies taking crypto use getting all the info needed to link person with their money anyway.
Cryptocurrency exposed thousands of pedophiles a few years ago. It stores a record of every transaction. They just had to connect the dots starting from the wallet of the CSAM website.
Blockchain sleuthing had become much more commonplace since then.
If you have a public ledger, you don't need names to identify people's wallets.
Japan has been doing it like this for years. And it's much better. Pay people properly, and encourage them to be the best they can be (even for jobs that are so-called "unskilled") and then everyone's a winner.
Basically most of the world except Noth America pay their waiters wages that don't depend on tips. Sure some places allow additional tipping, but it's not a mandatory fee and the workers don't have to get it to make a living.
The mandatory minimum wage where I live is $18.69/hr, which is higher than the median wage in many European countries. Any tips or mandatory service charges are always in addition to this and many waiters make more than the minimum wage.
Replacing tipping with a 20% mandatory service charge -- tried many times here -- results in the employees earning less money, empirically. Eliminating tipping is unpopular with employees since it is effectively a pay cut.
Proponents of "no tipping" policies in the US are not going to be successful until they address the elephant in the room of reduced pay for employees. Unlike in Europe, US employees know how much money they earn with tipping.
> The mandatory minimum wage where I live is $18.69/hr, which is higher than the median wage in many European countries. Any tips or mandatory service charges are always in addition to this and many waiters make more than the minimum wage.
It's about the social safety net, not just about raw cash.
The same waiter in most European countries would have health insurance even after being fired, for example.
Generally, minimum wages are lower for tipped professions than non-tipped for this reason. Assuming you're talking about Seattle, which is the only place I could find with an $18.69/hr minimum wage, tipped employees make $16.50 in comparison [0].
In Seattle, waiters at many local restaurants and bars anecdotally seem to clear about ~$80k/year, so the minimum wage is kind of moot for most of them. I have several friends that work in the industry who have strong opinions on the matter.
The tipping issue in Seattle isn't about a living wage, they already have that, it is about maximizing their income. After all, who doesn't want to maximize their income? The economic structure and dynamics of it are fascinating. What proponents of "no tipping" schemes fail to recognize is that it is against the interest of employees in many cases, even if it is often positioned otherwise.
>The mandatory minimum wage where I live is $18.69/hr, which is higher than the median wage in many European countries.
That may true in raw numbers but is it still true when you consider that a European worker will have coverage for health, retirement, paid annual leave, paid medical leave, will have access to unemployment benefits, will get subsidised lunches (in some countries) and will be protected by laws that enforce overtime pay and their rights to not be fired without justifiable cause.
As someone who was in a service role and subject to an opt in post interaction survey, I don't believe systems like this are effective. They select for Karens with unreasonable demands. They use the survey to retaliate against the employee by leaving bad scores.
Yeah, I think the ridiculousness of the Uber/Lyft rating system (anything but a 5 means the driver should be fired) tells us that customer feedback of this sort is less than useless.
I find forced (or even strongly encouraged) rating even worse than tipping, especially given the inevitable anything less than 5 stars might as well be zero attitude.
Seriously. It's like if you had an insecure partner who incessantly asks you 10x a day "How do I look?" and if you say ANYTHING other than "FANTASTIC!" you know they're going to react really bad.
Except it's worse since if you ever give an honest answer it's not you they'll berate, the bosses will just flagellate their underlings who might not even be truly responsible for the "low" rating.
I try to almost always tip in cash which means I mark 0% tip, and I never give star reviews. One exception for a review is the smiley face vs sad face at airport restrooms. I've never marked sad face yet but if there was an issue I would gladly and that will simply let staff know there is something amiss in that spot.
Always rate negatively, and if possible supply that you are doing so because rudely getting asked to rate them at an inopportune moment sours your experience however great it may have been.
Review / feedback programs are terrible (5/5: would f*ck over soulless management again).
If the whole point of eliminating tips is to treat the workers fairly, why not institute some sort of profit share, or monthly bonus based on YoY revenue growth?
I think profit share is not a bad idea, but to make it fair, it should also involve some degree of risk sharing. Counting up the costs of opening a coffee establishment (is it a roaster as well?), it's not as high as some other businesses but there's rent, equipment, seats and tables, etc. If every employee and the owner was a member of something like a LLC, what would the buy-in be? I have no idea, maybe $10K each or something like that? Most of that would be lost if the business failed, so it would provide a nice incentive, and once cleared, a steady stream of income.
Of course a short-term employee (summer, tourist season, etc.) would probably not be interested in that arrangement, and would prefer a good steady wage.
Profit sharing can be things such as giving a bonus when sales are good. No need to make things as complicated as possible. Lots of other sectors give bonuses, restaurants/hospitality almost never.
Please accept cash. We don't need to encourage credit card companies to track our purchases and give them the tools to control who can and cannot do business.
I'm a big fan of card payments myself, but I agree that cash should be accepted universally, until unbanking/underbanking is completely solved and there is a cash-analogous private way to pay.
Besides the accessibility issue, not nearly all activities or situations making somebody want to transact anonymously are illegal (just consider e.g. people in unsafe domestic situations trying to get help/away but not having their own card).
I believe we could strike a pretty good balance with some research, engineering, and product development, avoiding both possibilities for tax evasion and financial crimes on one extreme, and creating a complete financial panopticon on the other.
Because they can, and people with influence know they can. Then people with influence force the credit card companies to do it. Not hypothetical, in actuality
I am really of two minds about this. On one hand, yes, the suggestion that I leave a tip and the amount suggested has ballooned to a ridiculous level in some businesses.
On the other hand, I recognize that there are plenty of businesses that still don't offer a way to tip at all (Starbucks until very recently), and more importantly, that none of these employees make anywhere near a living wage. Having worked service industry jobs and found my way out, I can't help but thinking that most of these jobs are merely dark patterns that take advantage of people who can't or won't demand what they actually should be paid.
The unfortunate conclusion I've arrived at is that US consumers simply aren't willing to pay the true price for many of the things they enjoy on a day to day basis. Just one example is that their daily coffee is subsidized through the misery of minimum wage coffee shop employees.
You say you pay a "higher wage" - what does that actually equate to for someone working 40 hours a week?
> none of these employees make anywhere near a living wage
> the misery of minimum wage coffee shop employees.
i don't know, TONS of people make way less than baristas and other counter-service workers. Lots of the customers of those baristas make similar wages as they do. Why does the barista deserve that money more? The maids at a hotel make less than a Starbucks barista, and there's no way they get significant tips especially at the cheaper places.
Tipping baristas and other counter-service workers who are NOT paid below minimum wage might make some progressives feel generous and virtuous, but it isn't solving any problems in a fair and equitable way. It's raising people's expectations -- in CERTAIN occupations only -- that they deserve $2 per customer for setting a cup on a counter and hollering your number.
I am sure every single person would rather be paid a consistent wage.
isn't the whole problem with tipping is that every role with tipping will lower the base pay in consideration of that? I would find it very hard to believe anyone receiving tips prefering that to just a stable matching income (except for some exceptional cases...)
And yeah, it turns out that people want to be paid more than minimum wage to be on their feet and dealing with customer orders all day long. I don't see why service people shouldn't be paid more than minimum wage!
> isn’t the whole problem with tipping is that every role with tipping will lower the base pay in consideration of that?
That’s a problem.
Another problem is that it is demonstrated to be a loophole through which unequal compensation on bases that would otherwise be unlawful for an employer are achieved.
> I am sure every single person would rather be paid a consistent wage
I’m certain that is not the case for many/most (depending on the area and establishment) tipped workers. Most waiters, baristas & bartenders certainly wouldn’t want to earn only slightly more than fast food workers even if the average wage goes up.
> will lower the base pay
Not in California and some other places (applies to at least 10-15% of the US population)
> Most waiters, baristas & bartenders certainly wouldn’t want to earn only slightly more than fast food workers even if the average wage goes up.
I don’t understand this argument. What I’m saying is to just take what the earnings were with wage + tips, and make it just wage. Literally not changing the total take home pay (I guess people don’t report tips though?)
Unfortunately I doubt this would be a steady state solution. If restaurants were to implement this suggestion, they'd probably undercut each other's prices by significantly lowering the wage of their staff.
Business owners who don't pay their workers satisfactory wages will find nobody to work for them, lose customers and have to close. It's happening rapidly, worldwide, right now.
Certainly there's a lower bound at which a business owner won't be able to staff their restaurant, but that lower bound isn't one penny less than the status quo. Rather, there's some shitty middle region, where employees are generally dissatisfied with their wages but not desperate enough to leave.
The world is changing more rapidly than ever and the attitudes of young workers (typically found in the hospitality industry) is completely different than just 10 years ago. Even the concept "desperate enough to leave" is alien: If a better opportunity shows up you switch, there is no question about it. Just like you yourself will pump gas at a station with a better price than the one you pumped gas in yesterday.
There is absolutely no reward for sticking with an employer in this industry, if another employer has a better offer it's goodbye.
I think you're conflating deserving that money more with deserving more money. Obviously the ideal solution would be to pay everyone better, but individuals are limited in their capacity to effect change. Eliminating tipping, absent a replacement, isn't fair either (except in the sense that all service workers would become equally poor).
Wow. this attitude is awful and sadly not that uncommon. I have a friend whose household income is around 400k, is an effective alturist, and tips 10% at restaurants because he thinks tipping is unfair. The only place you're really expected to tip is a restaurant - 15-20%. everything else is optional, but when you make a ton of money and have taken care of your own, you tip people well for the hard work they do for you. Seriously, most of on this site, if we've been working 10+ years should be giving a 20 to the handyman, or leaving $10 on the bed at the hotel.
> Just one example is that their daily coffee is subsidized through the misery of minimum wage coffee shop employees.
Your everything is "subsidized" by low wages of people living in third world countries. US coffee shop employees aren't quite near the bottom of that hierarchy.
100% true but doesn’t invalidate their situation. If we follow that logic to its end, there’s always someone in worse shape who is also further removed from those who have the ability to make a difference.
I don’t disagree, but are you suggesting that we shouldn’t act to solve a problem just because it isn’t the worst possible problem? Feels like a convenient out.
If customers rate their order and interaction with the barista to be satisfactory, a bonus payment will be made to the baristas on shift.
As a customer, please just leave well enough alone. I'd really prefer to just leave a tip if I'm going to be gently shamed into leaving reviews to make sure your employees somehow get the wages they were led to believe they would earn.
I would go a bit out of my way to frequent any non-tipping coffee shop/restaurant. And I'm quite happy to pay a higher price in the menu items to reflect the fact that the business isn't shifting some of their payroll burden to me in lieu of realistic pricing.
I'm Australian, living in Canada for 10 years, just went back to Australia for 18 months, now back in Canada. I have some experience here.
I love not tipping, and for me personally, the service in Australia is perfectly fine. I took my (Canadian) partner to Australia (her first time there). For her, the service was nowhere even remotely close to that of Canada.
In Australia, someone might take your order (or you order yourself at the bar), then your food is brought (or you get it yourself, get your own cutlery), and that is all. Plenty enough for me, but that's utterly bare minimum of what you'd get in Canada. Almost below bare minimum.
In Australia nobody comes to ask how your meal is, nobody comes to top up your water, and nobody will pontificate with you for 10 minutes about the difference in hops between two beers on tap. When my partner asked for that kind of information, most people just shrugged and gave her a sample of both, then said "what do you want?". I found it hilarious.
So while I think the service in Australia is perfectly adequate and I personally like it, my Canadian partner found it lacking immensely from Canadian standards, but she did like the no-tipping.
I had to read this a few times to make sure that, yes, you are actually implying that service in Canada is somehow particularly great.
I've lived here all of my life, but traveled very extensively. I would give the typical Canadian service interaction a neutral pass; they aren't openly rude, nor are they offering to wash my car.
Where are you going to eat that someone taking your order, bringing it to you and checking in to make sure that it doesn't taste like burnt plastic could be described as "bare minimum"? That sounds an awful lot like "pretty standard" to me.
Even in fancier places, there is a real art to achieving the perfect balance between attentive and annoying in service. Having someone notice that I need more water leaves me feeling cared for; having someone stop by on a 7 minute schedule to ask if we're "still okay" leaves me feeling violent.
> you are actually implying that service in Canada is somehow particularly great.
I was saying that service in Canada is noticeably "better" than service in Australia.
So what I'm actually implying, is that service in Australia is quite "lacking". By lacking I mean nobody "waits" on you. You often order at the bar, pickup your own food and cutlery, re-fil your own water and walk to the bar to buy yourself a drink.
Even a "sit down" restaurant will really only take your order and bring your food, nothing more. Fancier is different, but then you're paying more for the food.
As I said, I'm perfectly happy with that level of "service" because it means no tipping.
Of course, minimum wage in Australia is $21.38 with benefits, leave, healthcare, etc. etc. For everyone.
I waited tables for years in the Southern U.S., now I live in Canada.
I find that service is highly regional even in the U.S., but as a whole, better than service in Canada.
I also think that Canadians making at least minimum wage with tips on top plays into that. In the U.S. you'd have to provide great service or you risked not making any money (technically I know your employers are supposed to top you up to minimum wage, but they do it for the pay period rather than an individual shift)
I am an American who has been living in Sydney for years and who stopped tipping here after getting used to it not being expected - but it has gotten a little weird/muddied of late. First it was Uber and the food delivery apps - and I did tip there because the app asked and I knew that in the gig economy the workers were not paid well (unlike others in Australia).
Then I have been to a few restaurants lately that the card machine (often a US-based one like Square) asks for a tip as a mandatory thing (i.e. you have to say no or type 0 to get past it). And the waiter/waitress will stand behind you watching/waiting with the machine they bring to your table. This never happened before - and I do admit that I have started leaving $10-$20 or something if I was happy with the service when this has been forced on me (depending on the size of the bill and the mood I've been in).
I did this with a work drinks with a customer the other day and my Aussie boss called me out on it "what is this tip on here - we don't do this in Australia". And I was like "I was in front of a customer the machine asked me - did you want me to say zero and possibly look cheap/unkind?".
So it is somewhat creeping into things here. Curious the views of other Aussies on how they are dealing with it? Am I just slipping back into this because I am an American and was used to it being a thing?
You're correct, it's creeping in mostly due to cookie cutter POS machines setup for US market (I assume), and Doordash/Uber/etc apps and websites baking it in. I'd guess the payment machines can be setup to hide it, but management figures we have a "choice" (under light duress) to not tip so that's good enough. There are also a lot of international people working in hospitality so I guess they wouldn't be as against it as a lot of locals and just assume it's normal.
There are pretty much weekly hate threads on r/australia and similar places on Reddit about this as you'd expect.
One other thing I did notice - when travelling the US and reading reviews, a lot of people talk about the service. It's rarely mentioned in reviews over here in comparison unless it's an outlier. I personally found the fawning attention quite cloying in the US, but it's a different culture I guess. Wondering if that'll change if tips gain a foothold.
If there's a presumptive pre-filled tip amount that I have to zero out that would annoy me a lot.
In most cases there is a tip button that I just don't press or I answer 'No' to the question on it. Sometimes the staff do it when handing it over. That doesn't annoy me as much and I don't usually feel much pressure since I've got a whole life behind me not tipping I guess. I do feel a bit awkward sometimes so I'd rather they not put me in the situation but I get over it.
People do tip in Australia, it's just not expected. Tipping a genuine act of generosity to reciprocate exceptional service.
The correlation between service quality and tipping is an interesting one, why does anyone do a good job in any role without some kind of incremental reward for effort. Do office workers always revert to 'just enough to not get fired' or are they playing a longer game for promotions and bonuses?
What is this "exceptional service" people are talking about? Take the order without forgetting stuff and then bring dishes from the kitchen? Isn't that just a normal baseline for this profession? Or does it mean not spitting in the food (I'm joking)?
I sometimes leave tips, but not once have I understood why, because there is no such thing as "exceptional" in the waiting service imho. I only do it due to the social pressure, like a monkey in the story about water hose and a ladder.
I absolutely think that exceptional service is possible - for example, when I visit a restaurant with my elderly grandparents who have some extremely particular dietary restrictions, and the wait staff patiently discuss our options, help them create a meal that satisfies their preferences and remains interesting, I find that exceptional. I've had wait staff give us genuine recommendations on the menu, with honesty, indicating the dishes they don't like (much more rare) as well as those they do resulting in a good meal - I enjoy that candor and am happy to tip for the recommendation. I've also had staff stay late and keep a restaurant open because we were on the last train into a station with nowhere else to go and eat and didn't speak the local language - I found that exceptional as well.
Look at the UK. Tipping has gotten weird in the last decade but the service culture is just missing. The service industry is what you do in high school or college because it’s the first cost that the food service industry wants to optimize. Consumers don’t expect or demand good service, so we don’t get it.
No - we expect adequate service and no obsequiousness.
It makes us uncomfortable to be pampered or if the serving staff are overly friendly or chirpy - it feels insincere to a Brit and puts us into a defensive mode.
If serving staff are polite (or at least not surly) and we get served in a reasonable amount of time then that's all we ask for and we'll tip 10% if there was nothing wrong with the meal, or put some change in a tip jar if we only ordered drinks.
Traveling to the US as a Brit is an affront when you first experience "service culture". You become desensitised to it after a while (and can even have some fun with it) but initially it's a genuinely uncomfortable experience and it blows my mind how different "normal" can be across English-speaking cultures who share a hell of a lot of history and culture.
Post-Brexit service in London has genuinely become very bad, on average. It’s just incompetent half the time. I can’t count the number of times I’ve walked into a mid-market restaurant and waited several minutes for someone to greet me. I can live with crappy service, but I don’t buy this narrative of ‘sincere Brits vs fake Americans’. Most Americans in the service industry seem genuinely to be trying to do a good job, even if there are layers of fake friendliness on top of that. Most British people in service jobs seem genuinely not to give a shit (which is fair enough - I wouldn’t either).
> it blows my mind how different "normal" can be across English-speaking cultures who share a hell of a lot of history and culture.
Is that really true, though? The US is such a mix of cultures at this point (and even the more dominant cultures have diverged so much), that I'm not sure it's accurate to say that Brits and Americans generally share all that much culture. History is there, yes, but it's been over 200 years, and history fades.
These aren't "summer jobs" for pocket money or children's first steps into the workforce, they're the jobs adults depend on to keep their rent/utilities paid and their families fed.
Someone 25 years of age and older can deliver exceptional service, they just aren't paid enough to care to.
The GP poster was referring to the age of service workers in the UK, not the US. No idea if they're accurate for the UK, but I don't think US data can be used to refute what they're saying.
It's difficult to explain the cause. You can't really account for it by a simple tipping/no tipping divide. In other countries that don't do tipping, you'll end up wishing they did because the service is so abysmal. You can't get decent service or expect a good waiter or waitress, because nobody is motivated to do the job well.
I've been to Japan many times. Tokyo, Kyoto, Nagoya. Japanese culture is exceptional in many ways—you can't pretend that their culture is normative when applied to the west. My point still stands. You can't pay service staff minimum wage or slave wages and expect good service. This is why the tipping system developed.
Ah, that's bullshit. I've been all over the world and I'm guessing by your comment I'm more travelled than you. Currently, I'm in the Philippines, where there's no tipping. Go ahead, come down here on a trip and see what happens. No tipping. And the service is abysmal because nobody has any incentive to be an excellent waiter or waitress.
What you don't understand is that tipping became a thing in order to reward good service and provide a decent income to service workers. It's not perfect, but it's there for a reason.
I just finished saying that I've been all over Japan. And you missed where I said that Japanese culture is in many ways exceptional and not like other cultures. It's not like the rest of SE Asia, for instance, where there's no tipping and you have to wait for a half hour to get your cheque.
About 5.5% of Americans don't have bank accounts and pay primarily with cash. Most of these people are impoverished minorities, specifically blacks and Latinos. Not accepting cash is a pretty discriminatory practice.
Handling cash is a hassle. It carries risk in terms of losing it, and it takes time to count it and transport/deposit it into a bank. All things that eat into your profit margin, in an industry that has crazy low margin.
It takes time to do those things. Time is money. It takes time to reconcile in a double entry accounting system the cash you received in business operations. Software does it automatically.
> We will probably need to highlight that we pay a higher wage for baristas & cooks to account for the lack of tips, and give customers an option to donate to a charity if they still wish to part with additional money.
Yes, after the total confirmation (including tax if you can), where you'd normally be asked to tip, you should see if it's possible to display the no tip policy and higher wage explanation.
You could also tell customers that your business is donating to certain cause at this point. Just don't pass on the burden of deciding whether or not to donate to your customers. Another option is to dedicate certain profits from a specific product to a cause and note that on your menu.
> I've just opened a coffee shop in Los Angeles last month
You are brave. A friend opened a coffee shop elsewhere in LA County a few years ago. The LA County permit and inspection process was nothing less than a utopian nightmare. I have done lots of construction projects myself and have learned to absolutely detest that part of the experience (going to the DMV is actually better). The usual outcome is that projects end-up costing a ton more and take much longer to complete. The issues, in my experience, rarely have to do with actual safety concerns, etc. It's mostly about process and check-boxes. I hope your experience was better.
Here I thought it's nice that an American business does not force their employees to be over the top nice all the time to the customers even if they're having a bad day by making their wage depend on it, but then I read the last part...
"Yelp" is the sound a dog makes when you step on its tail. "Review" websites are, to a large portion of the population, complaint websites.
By all means, keep an eye on what's being said about you and look for red flags, but don't be that neurotic boss that rides your employees every time a review under 5 stars comes in. The best restaurants around that have stayed for more than a few years often are the ones with 3 stars -- 5 usually just means they're new, not particularly good, and people coming in are adventurous, rather than following what someone advised.
There is one like this in Ballard, WA. They have small signage about how it works. And also little pamphlets about both Fair Trade and Fair Wage policies.
I think this is cool and hope your location gets the HN effect today aka real world ddos :)
Just to dump an idea: Maybe instead of using a scale based rating, you could experiment with something that has not a clear maximum value to prevent the all 5-star rating effect described by others. The only thing that directly comes to my mind would be a button, that the user has to hold until the time matches the perceived rating.
I would be concerned about any sort of individual bonus directly linked to the service just rendered. That tends to work against cooperation and creativity and problem solving. Only when you are unencumbered by incentives can you afford to experiment and learn from your mistakes and get better at what you do. (See e.g. Pink's Drive for more details on motivation.)
It's especially bad if it's based on some variant of having scores "above average" or whatever, because that ends up being a lottery. At that point it's better to just establish a lottery among the employees. If you really have to do individual bonuses, I think it's better to take a leaf from Deming and only grant it for truly (statistically verified) outperformance.
Someone else suggested collective bonuses (e.g. profit sharing). That aligns incentives nicely: it is slightly lagged, meaning you can afford to experiment and learn. It's also not individual, so it fosters collaboration. It's still something of a lottery, of course, but one decided by the customers, not by a manager.
Can I ask why not?
I see the rise of CBDCs as a threat to democracy (governments able to monitor and control what you spend your money on) and cash as a vital tool in a fight against that.
Though as a European I always find American tipping culture quite insane. Nothing wrong with tipping for good service, but they way it seems expected in the US is very off putting
Continuing the geek vibe, I believe the best starting point to make sense of inner workings of incentive systems and rewards is SDT - Self-Determination Theory. It's 70+ yr old theory of motivation in psychology that originated in studies of how external rewards (i.e. tips or bonuses) crowd out intrinsic motivation.
In other words, if we want employees to act friendly to customers - should we design a system of external motivation (rewards and punishements) or design a system that boost intrinsic motivation for this behaviour. For example, SDT has many studies on how different rewards giving patterns affect motivation. As far as I remember, the least detrimental is task-noncontingent rewards (giving "reward" for just "showing up", basically). The most detrimental to motivation is competitive-contingent (give reward to those who outperform others).
It sounds insane that you need "rewards and punishments" for one human to be nice to another. Friendliness should be a natural by product of happy people in a good workplace.
I'd suggest a different tack, analyse what in the system has led to one person to be unfriendly to another, and solve it without assuming the buck stops with the individual as some type of perfectly free agent in a skinner box.
Proper pay, proper healthcare, leaders that lead by demonstration and treat colleagues with respect and a business that does not lead to angry customers by being scummy... are just table stakes for example.
There was a restaurant that opened near my old apartment (literally on my block) that started off with no tipping. It was a great fancy pizza place. Loved going there. Fast forward about 5 years, we've moved a few subway stops away so didn't go there as often (also the pandemic). We go back in 2021 and we come to find out as we pay that there is a tip line on their receipt. Never truly found out why but I wonder if it was hard to find or retain staff that can work at similar, or better, caliber restaurants and make more money via tips. From comments in their Yelp reviews it looks like they started taking tips before the pandemic so that wasn't the cause.
I hope you'll be able to continue not taking tips because I really wish we'd abolish this practice. Good luck with your cafe and I would love to try it out next time I'm in LA!
Cash will tie up an additional employee behind the counter. One of the reasons we are able to not accept tips and pay fair wages instead, is because we don't need a person at the register.
And while you can use that person for other tasks when there is no one in line, they do need to glove up each time they may handle a food item.
Also, in LA cash is a safety issue if you plan on staying open late when traffic is low.
To facilitate anonymous payments, we will accept crypto soon.
It seems like promoting a fairer society is a priority for you, given your focus on paying fair wages. That’s great! Please consider extending that desire to serving people who do not have credit cards or bank accounts (or crypto …) Plenty of them exist and like coffee too.
It is unfair to lay that burden on businesses, when it should be the government’s job to operate infrastructure.
It would be trivial for the federal government to offer each individual an electronic money account that legally cannot be closed and is forever accessible to them. And as an adjacent comment wrote, the in person services infrastructure can be tacked onto USPS.
Tacked onto the USPS? Why would it be a good idea to have the USPS run a bank with no experience or staff in banking, for every single person in the country, especially when the USPS CEO is more or less openly trying to dismantle and then privatize it? https://en.wikipedia.org/wiki/Louis_DeJoy
*edit to just add I read the article posted by sibling, they are proposing a “pilot program” to offer check-cashing for a fee, not depository accounts, and it adds that they’re avoiding the word “bank” to distance themselves from places where you have accounts and store money and intend to keep it that way…
Obviously this due to one party trying to dismantle it, which ideally would not happen to our country’s infrastructure. The point is using the network and real estate and organization of an existing federal government entity that already spans the nooks and crannies of the US to get a nationwide benefit up and running.
Yeah, fair enough, the idea makes some sense. But the fact that it’s an entire party trying to dismantle USPS, a party that has a lot of power, and not just one person, is precisely the very strong reason I wouldn’t be able to trust it or buy into a plan to add accounts and depository banking to the postal service. (I already get suspicious with articles that start by framing the USPS as an unprofitable business. They might indeed be “losing” money, but it’s a branch of our tax-funded government, and we don’t expect other branches to be profitable businesses. Does it even make sense to frame the police or FBI or firefighters as “unprofitable”? The narrative of the USPS deficit seems like part of the plan to privatize it...)
On top of that, I guess it’s very, very far from trivial to spin up such a service even though it’s true the USPS has a nationwide physical presence. It might be fair to say it’s easier than starting from scratch, maybe, but the USPS has entrenched practices and infrastructure that might not easily extend to physical and digital security required to handle high volume finances at all.
Does having electronic accounts cover everyone? We seem to have a rapidly growing homeless population in the US, and many homeless people have real difficulties holding on to cell phones & documents long term, anything that would allow them to authenticate and/or use an electronic account.
If electronic accounts were the solution, I could also imagine the primary infrastructure being a phone app (maybe not entirely dissimilar from China’s WeChat). In-person cash transactions for deposits and withdrawals could perhaps be mostly handled by ATMs?
> but the USPS has entrenched practices and infrastructure that might not easily extend to physical and digital security required to handle high volume finances at all.
The USPS has handled identify verification for the federal government since many, many, many decades. If you want a US passport, you have to go to a USPS office to get your identity verified. This is the logistically difficult part, since it involves so much labor, but it’s already done!
As for electronic accounts, the hardest and most laborious part is identity verification. The electronic accounts part can be taken care of by some IT department, just like visa/Mastercard/any number of banks and financial institutions (including the federal reserve) do.
I wrote “electronic money accounts”, and yes. It is clear that electronic money has lots of utility, and it makes sense for a society to ensure its existence as infrastructure.
The same infrastructure can also serve as an identity verification service, which is also sorely needed.
There is no reason it has to operate as a bank, which would involve becoming a lender.
The government will never never allow any kind of bank account that cannot be closed and is forever accessible.
The closest we have to that is gold buried in a hole somewhere or maybe a cold storage seed phrase in your head and the discipline not to reveal it in torture.
NYC can’t, for better or worse, dictate federal policy. Given the limited scope of its authority, requiring businesses to take the currently available form of universal currency seems not unreasonable.
This seems like one more problem of policing individual behavior instead of solving the infrastructure problem, by say, having the Post Office run a free bank for the under-banked [1].
Plenty of places have waiters carry around hip bags with cash instead of doing it at the register. It's no less convient than carrying around a card reader.
Cash businesses tend to get robbed much more often than places that don’t take it. Cash-only businesses, like marijuana dispensaries, are notorious for being robbed here in Seattle.
This is kind of anecdata. We've all had terrible service, and some of us live in economies which are no tip or no routine tip.
At scale, I continue to believe there isn't a strong relationship between tipping and service, as much as between salary and service or service culture and service.
Transition periods are always complex. If tipping was verboten there would still be a cohort complaining about it for years, about both income side, and service quality side issues.
Chick-fil-a usually makes franchise owners be hands on in the Restaurant, and you cannot own like 20 of them. I think most people own one. At least where I grew up they consistently paid the highest of any fast food place and I am pretty sure they offered tuition reimbursement. The other main benefit they have is the whole closed on Sunday’s thing which makes scheduling more favorable since you know you won’t have to work on sundays.
I think it depends on if the server gets a percentage of the total bill (basically auto-tipping if you think of it that way). Basically everything on the menu gets raised in price 20% and that's the tip portion, ideally shared with the kitchen.
This provides a strong incentive for good service (and good cooking) as an empty restaurant (fewer return customers) means less income. Otherwise, why bother providing excellent service, if you're paid the same hourly wage if the place is packed or if it's half-full?
I actually say this virtually snark free, but I've always thought of Chick-fil-A as a Christian religious group that happens to run a chicken sandwich restaurant. I've certainly had lots of experience eating their food and talking to the employees and a few owners. I suspect that's part of the atmosphere.
There is a brewery in my town that does the same thing. They do accept cash and any "tips" (which is any amount over the total) goes to their charity of the month. On their cc entry system, its never shown to the customer so there is never that awkward tipping part you see on a lot of POS systems now. If the customer asks, they say that they don't take tips and if they'd like to leave one in cash, it will all go towards their charity that month.
By doing this, they appease the customer who wants to leave one and don't get in a back and forth with them over tips.
> Also, some customers seem to think that the screen froze at the very end because it didn't ask for a tip.
Haha, I think that's totally reasonable of them. As a consumer I would appreciate a notification informing me that I couldn't tip, no matter how much I thought they deserved it.
Edit: I wanted to add that there are a lot of places we're not expected to tip at whose employees deserve it just as much as the ones working at the places we are expected to tip at. Tipping culture may be out of control, but a lot of times people deserve a tip for providing exceptional service. That's our way of validating them and saying, "you're going to make it."
> I do believe that the incentive tips provide for employees to "act" friendly to customers can be transferred over into a review/feedback program, which is what we will be testing out. If customers rate their order and interaction with the barista to be satisfactory, a bonus payment will be made to the baristas on shift. Once we introduce this, I'll share the results.
Might as well go full hog and add rating to food/drinks they ordered. Not to judge the person doing the service, just get a feel for what your customers enjoyed and what they didn't.
Curious to hear your thoughts on this? [0] It's a post from Eric Huang - he's a chef based out of NYC and recently wrote about why his restaurant has decided to accept tips (while acknowledging that it's a bad system). It's a long read, but his point about more established hospitality groups/restaurateurs trying and failing to adopt a non-tipping model resonated with me.
The issue is that I have to trust the proprietor. In my locale it has become common for restaurants to add ‘health & wellness’ surcharges which began as charity/Covid response and of course never went away.
It is almost never the case that the restaurant provides any of this to their employees and there is no transparency involved.
I honestly see it as a scam to charge higher prices without itemizing properly on the menu.
Even if you highlight the wage disparity in signage, I would have no way of knowing whether the information is accurate or just another piece of propaganda.
> If you show the full price with taxes upfront, that's an astonishing level of integrity.
It’s funny, what you see is what you pay doesn’t require an astonishing level of integrity in much (most?) of the world, it’s just standard practice; instead, tacking on hidden fees not on the price tag would be unthinkable.
It’s really complicated in the US because we charge about 4 different kinds of sales tax (federal, state, county, city), and differing rates depending on the type of good, or even the time of year.
So like a chain store can’t include taxes in things like print ads because you could have two locations a few blocks apart that literally have different tax.
Not just standard practice, it's mandatory, for consumer facing prices you will get shut down if you don't include tax in it (and detail how much of it is tax in the receipt)
We might do the QR for customers that did not order using the app on their phone. We're printing stickers anyway, using the Star Micronics SDK which makes QR code printing a breeze.
Gotta say, love seeing the 'hack on my own rig' mentality applied to coffee shops. Curious to know how your culture views to-go orders? Based on the YouTube short (place looks awesome btw), I don't think the vibe is grab and go - but if it is, how are you handling the tickets? Just a separate Star for the togos? Nice getting that working, too - I'm stuck in a regional rep loop trying to get access to ours.
Roughly half of the customers do head out as soon as the order is ready, especially in the morning.
We print stickers regardless of to-stay or to-go because it helps us keep track of fulfilled items, and you can easily pass a sticker to a colleague if you need help with an order.
> the prices they see on the menu is what they'll actually end up paying
Is the sales tax included in the listed price?
One of my pet peeves is how "tax and tip" are not included in the displayed prices in Ontario, Canada. I hate having to do arithmetic on every purchase I make.
I grew up in Sydney, Australia where what you see is what you pay - tax incl. Tipping is generally not part of the culture because the minimum wage is a livable wage (in most areas).
We have 2 recurring customers that are vision impaired (there’s an apartment building for people with disabilities nearby). We help place their orders, as we would with any customer that needs help using the iPads for other reasons.
Vision impaired people require the same help reading the menu at any other coffee shop, so it’s not any different. In fact it might make it easier on them because they don’t feel like they’re holding up the line. If one of us guides them through the menu on one iPad, other customers can still use the other iPads to order.
On a related note, I did notice that our visually impaired customers have a phone app that I believe scans and reads the text from the screen out to them. Perhaps we should have our own text to speech option in some future version.
iOS has VoiceOver built-in. If you coded your app correctly, the customer should be able to activate VoiceOver with a tripple-click on the home-button (or the quivalent on a device without home button).
iPadOS comes with VoiceOver and you should be able to enable it as an accessibility shortcut (Settings -> Accessibility) that works in kiosk mode as well.
Depending how your views are laid out the app might need some polish to improve navigation, but overall it should work from the get go.
Concerns I see are that (1) only Apple users will know how to trigger it and (2) the vision impaired customer might leave VoiceOver on, which will confuse the next customer who uses the kiosk.
I think both of this comment is needlessly hostile.
Like, starting the conversation with an accusatory comment of "hey, btw, did you think of this very super rare situation, or are you the evil exclusionary guy?" is kind of an asshole thing to do. Most people with sight don't encounter blindness often, so making someone feel attacked for not thinking about is just a way to generate hostility.
Having said that, I actually appreciate the content (if not the form) of this comment – it's pretty easy to accidentally block people from using your software, and accessibility reminders are an important thing. Though in this case human solution (have the waiter come and help) is probably better than software one.
Calling a disabled person an asshole because they are trying to raise awareness for a rare and not well known issue is totally the HN thing to do. Thanks for drilling it in. You must be a very nice person to talk to.
dang, if you read this, please delete my account (or blockit, whatever). I no longer want to be part of this community, nor do I want to accidentally fall for it in the future. kthxbye
It’s unfortunate that you feel like I have an attitude about it at all. I empathize with you, and I know it must be difficult, especially in everyday life.
That being said, you are not entitled to anything more than anybody else just because of your disability. Nobody is entitled to free coffee, just like nobody is entitled to free cars.
What are you talking about? ARe you on drugs or something? Nobody ever said they want a free coffee, nor was anybody ever talking about entitlement. Get your act together, and cool down man.
The ADA is mostly environmental issues. By that I mean if your business has proper ramps, braille on signage for ingress/egress/restrooms/hard copy menus.
It doesn’t mandate that a business must prioritize disabled customers or even that every person with a disability be able to use the service. Again, car companies are the canonical excepted business, but the ADA cannot force you to serve a customer that your business is not right for.
I’m not necessarily advocating for either side, I just don’t like the idea of an automated process being disrupted when there’s other places someone with a disability can go for the same service. Doing business is mutual.
At no point has anyone argued that people with disability should be prioritized over any other customers. Just that they should be able to get the same service as anyone else.
How you think a car dealership is equivalent to a coffee shop is beyond me. That said, I can assure you that a blind person would be able to buy a car, if they wanted to. That they can't legally operate the vehicle isn't the business of the car manufacturer or dealership.
You are clearly advocating for one specific side. You've only argued for one specific side.
If your ability to disrupt a market hinges on your ability to not take the bare minimum of steps when it comes to accessibility, then I'm sorry to break it to you, but you're not cut out for "being disruptive". There's no attitude in "the disabled community" (whatever that is) that they are less capable. People with disability mostly want to be able to do things on their own, the same way as the rest of us.
I'm not being uncharitable, and I'm not accusing you of anything, I'm stating a fact. There is no other way to read the comments you've made so far. You've gone as far as framing it as if they just wanted a free coffee. Just because you're labeling it as a non-issue doesn't mean you're right. You've replied to an actual blind person asking for how they deal with it, it's hard to find a better example of how tone-deaf you come off.
You're describing a dystopian version of capitalism. Luckily, reality is much better and most entrepreneurs welcome advice from people with disability on how to make things more accessible.
I think the ADA might apply here. Domino's lost an ADA lawsuit because their online ordering wasn't accessible. Disability is also a protected class here, but I'm not sure if or to what degree that would mean anything. Afaik you can't refuse to serve a protected class at a public establishment, but I don't know if that compels them to make modifications to the business or not.
Compared to US tipped-staff service, non-tipped staff in Japan seem a lot more genuine in their desire to help. It seems a matter of culture and professional pride to be provide excellent service, which leads to a significantly more thorough experience -- being that nice in the context of a tip would seem pushy and awkward.
It's very interesting observing people use the app in person, as opposed to privately on their phone where you have no idea how they interact with it.
For instance the Stripe Terminal reader is immediately to the right of the iPad POS, but a good number of people don't know where to tap the card. I need to design an arrow on the checkout screen for that because I've seen many people tapping the card to the iPad screen. I think Square got them used to that.
It's 2023 but I still think a lot of iPad based POS have a poor ending transaction UX. It needs to be a cute, super clear and simple "All done! Turn the screen around." It's jarring to sometimes be dumped at the item selection menu that is meant for the cashier. Or it just says "Thanks!" without a direction to put the screen back how it was.
This sounds great. I'm getting fed up with prompts for tips from places where tips are not customary (non-food) but also I am not a fan of seeking feedback from customers because they may over scrutinize their interactions with service workers --though presumably it averages out over time.
I agree with others that you should not introduce a rating system or suggest giving to charity. If no one complains about an employee and you don't notice anything bad, then just take that to be a rating of "satisfactory".
That is awesome! When you say: what the price on the menu is that is what the customer pays; does it include sales tax as well? If so, def a very happy development and pretty much revolutionary for being in the US.
If not, is it something you could consider doing? I think it would be the next natural step :)
Disclaimer: I’m Swedish, all prices in Sweden everywhere is always including everything, you’ll never pay more than what you see.
I’m in process of opening an all you can eat pancake shop and doing the same.
I’m thinking of charging a small ~$x per table fee for bussing tables. Refundable if they self bus. Probably would always refund it unless they wreck the table. Not sure I want to administer it, or if it would be perceived as a punitive thing and get bad reviews. Just an idea I had while coding the self checkout app.
If you want to go thay route, it might be better instead to add a % to all the prices, and then at the end give it back if someone left a clean table. Something like "as a small token of gratitude for leaving the place clean and saving us time, here's 1% of your price back!"
I agree and this is my main concern. Only issue I see here is the gamification only works if they know about it up front/before they make a huge mess. I guess I could put something at the table that explains why they should help out.
Oh yeah I’d still clean it. Syrup is too messy to trust them. But it discourages people completely trashing the place is my thought. Difference of wiping things down quickly and having to bring out the broom and mop and spend 10 minutes on it.
I'm not sure if they're taking a moral high ground exactly, but I do appreciate a business taking a stand against tipping. It's bad for everyone in the end - I'd love it if it died soon.
Keep in mind that a far more pernicious and rather evil system is that of the donation receiving “non-profit”. It has over time been exposed and highlighted at various points, but I don’t think it has really at all penetrated the consciousness of the general public as to what a vast majority of “non-profits are, borderline con-jobs; and that’s being generous.
I won’t go into explaining and outlining exactly why that is for the time being, but suffice it to say that I have personal knowledge of the extremely manipulative industry that “non-profits” are. But I get it, some will not want to believe me, I mean they’re called “non-profits” and profits are bad, right?
The point of my caution is essentially this, what you are trying to avoid by stopping tipping, you will only far undo by essentially making “non-profit” executives and their friends and family rich instead of that money going to your employees.
Generational divide here. I used to work at Cacao coffeehouse in west LA in the 90s. Only took cash. Also, basically made no money other than tips. I moved to NYC and waited tables where there was no pay whatsoever other than tips. That was around when standard tipping went from 15% to 20%.
Having worked in the service industry, I usually tip 25-30%, per drink or per meal. But here's the relevant point: When I encounter a place that doesn't allow tipping, I still want to tip, and make sure to tip, because it's for the worker. I absolutely loathe the new system that's come into trendy restaurants in Seattle where gratuity is supposedly included. That's a skinflint way for a restaurant to raise their prices and assure you that their workers are being paid, without you as the customer having any say (or direct contact) with the workers. You may put up QR code menus and try to isolate the service staff from the customers, and eliminate tipping, but does that make happier employees? Does it make happier customers?
Tipping serves several purposes. One of them is to get the employees to give customers who tip well better service. Sometimes at the expense of an extra ounce from a whisky bottle, sometimes just with more personal care. The insertion of the management into the situation - trying to say it's good for customers and employees - strikes me as a very false, self-serving line of bullshit. And from everyone I know in the service industry, it seems like it quickly turns into a racket against them as well.
My prediction is that by 2025, places that eliminated tipping will be seen as just as infamous as any of the scammy disruptors of the tech industry in the 2010s; the practice of banning tips will be seen as disreputable, and life will return to its natural equilibrium where customers pay extra for good service.
Why do you expect as a customer to have anything to say about a worker getting paid? Do you follow your shoes manufacturing process making sure everyone in the chain is paid properly? I expect the employer to pay properly, otherwise for the employee to take their case to their union/court. This concept/way of thinking seems so strange as a non-American.
> My prediction is that by 2025 [...]
You do know that for the rest of the world, the CURRENT system of needing tips to make up the pay that the employer does not pay is seen as disreputable, part of the infamous scammy lawless American low-pay healthcare-less work landscape, right? Employers are supposed to pay livable wages, not let random customers make up for it.
I think it's the customer's responsibility to know whether the person directly in front of them is being paid, or relying on the customer to pay. If you go into a strip club in whatever country you are in, do you expect to get a lap dance without tipping the girl? Because she's in the union or being paid by the strip club? Probably not. In some states in America, like New York, waiters are basically like strippers. If you go there, you should understand that the service costs extra.
You wouldn't go into a Buddhist temple in Thailand and not leave some change at the door. You wouldn't go climb Mt Everest and not give a few dollars to the sherpa who carried your bag. So don't go to a restaurant in New York City and screw the wait staff. Budget it into your travels. This is a plain rule for traveling anywhere.
Did you ever go to a prostitute?
Do you expect her to be paid by the establishment?
You cannot simply say that because you are ignorant of the customs in some place, or you would never go to such a place, that people should not have to learn and abide by the customs if they do go to them.
As with prosties, so with New York restaurants.
As far as leaving coins outside temples... perhaps it was a local contribution thing, but it seemed like the right thing to do.
> Did you ever go to a prostitute? Do you expect her to be paid by the establishment?
I haven't, but if you asked me if I think service workers should be paid more like regular salaried workers or more like prostitutes, I'd pick the former over the latter.
Great answer. I don't know if I agree, as I always liked the freedom of gig work. Plus not knowing whether or not you'll get tipped well makes a job more interesting.
We've had a few customers baffled by the no-tipping policy, and still insisting that they leave a tip. Some even left cash on the counter or on the table. We had to chase a few of them down to return their money. Also, some customers seem to think that the screen froze at the very end because it didn't ask for a tip.
While it has been strange to see some customer's determination to leave a tip, I think overall it was well received by the great majority of people that just didn't say anything about it and made a mental note that the prices they see on the menu is what they'll actually end up paying.
We will probably need to highlight that we pay a higher wage for baristas & cooks to account for the lack of tips, and give customers an option to donate to a charity if they still wish to part with additional money.
I do believe that the incentive tips provide for employees to "act" friendly to customers can be transferred over into a review/feedback program, which is what we will be testing out. If customers rate their order and interaction with the barista to be satisfactory, a bonus payment will be made to the baristas on shift. Once we introduce this, I'll share the results.