1 How are you calculating this when the amount you tip is elective?
2 Where are you sourcing the numbers from for the difference in cost between the two systems?
It's not smiling, it's not being nice (although yes to being professional), it's not having huge cans with an unzipped collar.
It's:
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1 Hand and foot service. Think, "Don't get up, I'll get that for you."
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If you are brought to a table and menus are brought to you. If the person comes out to you and takes your order. If the silverware, napkins, drinks, refills, sauces, straws, food, extra plates, check, CC slip/change are brought to you so that you can continue your social engagement. If your half-eaten food, empty drinks, spilled sauce, crumbs on the floor, snotty napkins and dead zyn pouches are cleaned up while you lean back or walk away.... this is "full service."
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2 The server being paid less than minimum wage/ a reduced wage.
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Let's take a trip back to tipping as it was conceived in 1865 as a solution for business owners...
The long and short of it was that freed slaves were now looking for work. Ever-oppressive, people didn't want to give them the credit for having labor skills or quality. So the owners didn't want to vouch for the quality of their work and take the risk. So this is the solution they came up with: They would deduct the labor cost from the work, and allow people to give a voluntary contribution to make the laborer whole. Read that first clause again: They would reduce the cost of the transaction and allow the customer to determine whether or not the work done was worth the labor cost AFTER it was completed. The after payment was, of course, voluntary.
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Fast forward to today, FLSA and other laws have put protections in place so that people cannot work for less than minimum wage, you know the rest.
But this was and should still be a system where you're able to withhold the cost of the labor should you feel the labor was not of quality. Any business owner who is paying above minimum wage is not offering you a discount for the labor, and in this case tipping does not apply. Think of it as a gift instead.
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Counter service/fast food typically does not qualify for full service and reduced pay. Buffet service partially qualifies. Counter service can partially qualify if they're running your food to you and coming out to clean up after you.
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EDIT: Grammar. Sorry for the periods, reddit has decided it will no longer accept paragraph spacing.