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August 11, 2009

The unannounced service charge

We've talked about tipping during Restaurant Week before, but I don't think this particular subject has come up: The unannounced gratuity added to a large party's check by the restaurant.

I'm sure the rationale is that servers get lower tips for the same amount of work with the cheaper fixed-price menu, but it seems like a good way to alienate customers -- odd when the whole point of Restaurant Week is to attract new ones.

If an establishment is going to add a 20 percent service charge to the check for larger parties, why not announce it on the menu given to the customer? Is there any argument for not doing that?

Or maybe it's just an oversight not to have it on the Restaurant Week menu. In that case, I think you let the customer tip at his discretion.

Here's the e-mail from Michael that prompted this: ...

My family and I visited a well known and Zagat-rated establishment in Locust Point last evening. The food was mediocre as it was a limited menu at best, since this was during restaurant week. The huge surprise arrived when I received the bill and a 20% gratuity had been added to the bill. Nowhere on the one page menu was there any mention of a mandatory 20% gratuity for parties of 6 or more. Needless to say, I was close to incensed at this addition to my bill. I expressed my dissatisfaction to our server, who provided us with fine, but not exceptional service. She did not offer to reduce the amount. I completed a survey card indicating my strong displeasure with this fee.

You must know that while completing both my undergraduate and graduate degrees in DC, I was gainfully employed in some very nice dining establishments and, since I worked in the industry, I consider myself to reward fine service at the conclusion of a meal, without being “forced” to fork over an unannounced and unprinted 20% gratuity for a party of 6 or more.

At the conclusion of our meal, my father and sister chatted with the owners outside the restaurant and it was all I could do to withhold any additional comment. I have frequented many fine (read expensive) Baltimore restaurants and have never been assessed more than an 18% gratuity for a large party…that was a policy clearly printed on the menu.


Posted by Elizabeth Large at 11:33 AM | | Comments (50)
Categories: Tipping
        

Comments

If it isn't clearly printed on the menu as well as a posted sign I will REFUSE to pay ANY gratuity (and I used to be a waiter and otherwise overtip).

Large groups excepted.

A 20% tip was added to our party of 6 check at B10 South for Restaurant Week. It didn't really faze us since we had good service and it made it easier to split up the whole check. Honestly, I do not remember if the policy was printed on the RW menu, but we have a tendency to dine in large groups, so I guess I am used to it. However, I can see where Michael may have been incensed with the situation, especially with the automatic 20% assumption.

i agree that a service charge should be announced beforehand.

The problem is sometimes the policy is not used consistently.

A friend of mine had a large group at restaurant. There was notice that 18% would automatically be added to the bill, but when the bill came nothing was added. He didn't know, and he didn't leave a tip. The waitress came out crying and asking what she did wrong. My friend explaned that he thought the charge was added. The waitress responded that they don't alway add it in.

They don't always add it in? Why? I would suspect because they think some people won't tip at least 18% and that other people will tip above 18%. If the waitress thinks you are the former, you get the service charge. If she sizes you up to be the latter, you are given opportunity to tip on your own.

Yeah thats pretty much what it is.. if they think you might give more they wont add it on. But the whole point is that it needs to be clearly expressed, so there isnt confusion as to whether it is included or not.. or to at least know theyre going to do it! And 20% autograt, really? For me I would assume 18 is standard and anything more is REALLY uncouth.

Also why would you expect the server to do anything about it?
"I want to tip you less than 20%"
"okay here you go!!"
Honestly you should have escalated this to a manager or sure even the owner.

Just based on my experience for RW, I can say adding gratuity may not be such a bad idea when promotions like this are concerned.

My wife and I were dining at Oceanaire on Sunday, and we had hoped to get one of our friends as server. Apparently, the Saturday night shift had left her tired and in a tizzy; she couldn't work that evening. More on that later.

Our food and service were top notch, and we gave roughly a 35% tip. When our server got the tip, he nearly hugged us. We then went to the bar and had a cocktail, and the same near-hugging ensued when we tipped the bartender.

I spoke with my friend yesterday, and she said that her average tip on Saturday night was about 10%, and this was nearly across the board for the staff that night.

If my service was any indication, that's just wrong!

I made this mistake one time at Austin Grill during their "Born in Texas" free plate special, and I will never undertip on a promotion again.

Sometimes, personal shame alone won't make a difference, and I see a deep need to add gratuities for promotions. Not every diner gets it.

Was the Restaurant Week menu provided the ONLY menu? I ask this because I have been to restaurants during DC's Restaurant Week and the "Restaurant Week Specials" are provided as an insert to the regular menu, as would any other special of the day, week, etc. If this is the case, I think error lies with the diner for not having checked the regular menu or asking about the gratuity policy for large groups. However, if the RW menu was indeed the only menu, I feel the establishment was in error for not clearly stating the gratuity policy and leaving it for diners to assume or not assume that a charge will be added to large groups. BTW, you know what happens when you assume :)

I had a conversation with someone who had worked in the industry at one time and was told that the automatic service fee was "unenforceable" and that anyone can request/demand that it be removed. This person also told me that it is added when they believe the party will leave less than the fee percentage (i.e. - if they believe you are a big tipper, they won't add the fee since most won't add anything if the fee is present).
Can anyone confirm?

We had this happen once. I simply said to the server, "Oh, that's a shame you had to do that. We were going to tip our customary 25% before you insisted on taking 20%."

Bob - Did the person you talked to tell you at what point do the servers decide whether you are going to be a decent tipper? Is it as soon as you walk in the door, is it based on your appearance? Or do they use some sort of continuum. If you don't order an alcoholic drink, if you split an appetizer, if you ask for extra (free) bread, etc. If there are going to be standards, I think it needs to be across the board and known to the customer.

I think the commenter is correct in that an automatic gratuity is not enforceable by law.


But, the original poster's complaint, I think, breaks down to the difference between the customary 18% he was planning to leave and the 20% he unexpectedly was asked to leave. Even on a $300 check, this would have amounted to $6 (is that right?). The server or the management should have coughed it back up.

Two thoughts here... first of all, factual info: when I worked at the highly-esteemed Don Pablos in Columbia, the automatic tip for large parties was enforced at the discretion of the server. If we thought we would get more than 15% then we didn't have to add it in, but if we were concerned that we wouldn't, then we were able to add it in because it was printed on the menu.

Then my opinion... I know servers have to make money and promotions like Restaurant Week put a damper on that, but I get kinda annoyed by the concept that I have to tip outside my normal 20-25%. I know that maybe I shouldn't dine at a restaurant that I couldn't ordinarily afford, but part of me thinks that's the point of Restaurant Week. I know that servers live by their tips (hey, I was one) and it's hard work and it's not their fault that the prices are lower than normal, etc. and I get that a week like this could severely impact their normal earnings, but I'm broke, and it kinda bugs me that I'm expected to tip in excess of my normal 20-25% to make up for the lower price.

If those in the restaurant industry don't like living off tips, then it might be a time to think about a career change.

I think 20-25% is over-the-top generous. How many people tip that well?

I generally plan on tipping 25%. It is rare that I go below 20%, but not uncommon for me to tip 30 or 35%.

i tip 20% for competent service, extra if they go that extra mile but rarely more than 25%. i also won't hesitate to barely tip if the service is horrendous (rare). if the service is insultingly bad or rude i make it a point to leave a quarter with a note that i'll be following up. when i do follow up, i always decline or send back the "give us another try" incentive to make sure they know i was being genuine.

If a restaurant is going to add an automatic gratuity for large parties there are two things to keep in mind:
1: The gratuity MUST be printed somewhere on the menu.
"For your convenience Chez Bistro will add a gratuity of **% to any party of x or greater."
2: In order to not be accused of any sort of discrimination the gratuity must be added to ALL parties of x or greater.Or, they may not add gratuity at all. The server/restaurant cannot pick and choose the party to which they wish to gratuitize.
Unfotunately, all too often, servers will add gratuity to one party but not another for a variety of reasons. This is discrimination and it is illegal. My philosophy of life is I don't add gratuity to tables (except large banquets where it is written into the contract or it is absolutely restaurant policy). As a server, you pays your money and you takes your chances. It's a crapshoot. Sometimes I get stiffed. It happens. Most of the time I'm very well compensated.

Can we get a real lawyer opinion? Are either posted or unposted mandatory tips enforceable? They're not contracts or purchases of requested and possibly eaten food, could they be like a cover charge, which maybe are enforceable if posted at the entrance?

I'm still trying to figure out why the wait staff at Oceanaire had roach clips on their jackets.

Once that gets sorted, I'll worry about automatic gratuities.

In the past, the Entertainment books recommended that those using a restaurant twofer coupon leave a tip based on the "actual" retail price of the meal (prior to applying the coupon to the balance due). Now, I understand that some restaurants have special RW offerings or menus, which would make it difficult to compare RW prices with "actual" menu prices. Even so, should RW patrons be encouraged (without being required) to tip more for their RW meals?

When I dine with large groups of friends, especially at restaurants we frequent, and notice a "automatic gratuity", we will often say to the host/manager (if available) that they can do that but we usually tip near to 30% for quality service.

I was surprised to see at several area establishments the 15% is now automatically added to the bill.

I get pissed at any automatic gratuity. If the server does a poor job then it gets reflected in the tip. If the server does a bang up job, it gets reflected in the tip.

Why shoot yourself in the foot? The server might have earned more.

I do think the handy printed 15%/18%/20% portions based on your bill at the bottom the of receipt is very nice. Some folks after a cocktail (or two) can't do math to save their lives. Frankly, I'd like to see that as a standard!

hmpstd -- Same goes for using the restaurant.com certificates. They kindly ask on the certificate to tip based on the full price of the bill, and not after the discount was applied. Isn't the point to save money?

Misha -- I was in South Beach recently and noticed that EVERY place, restaurant and bar, added a 15% gratuity to the bill. I ordered a beer and 15% was automatically added. I understand that some people don't tip, but is it that frequently that gratuity needs to be automatically added?

Lissa-

Lobster bibs, maybe?

I'm more concerned that they look like the archetype of a Mad Scientist instead of a waiter...

Lissa, the roach clips are for after work!

I've said it before, I'll say it again. I ALWAYS go into a restaurant with every intention of tipping 20%, but I deduct points for carelessness, forgetfulness, and sheer vanishinng acts.

I also deduct if the server is in the weeds when it's not that busy. It;s not my fault that the House can't recognize the problem and step in so their guests don't have shoddy service. Why should I suffer? The server has only their management to blame.

BaltBabs, I concur that the point of a twofer coupon (or of a restaurant.com certificate) is for the diner to save money on the (food and/or beverage) check, and for the restaurant to get business. I don't think that stiffing the wait staff on the tip was part of the business plan. Again, while I doubt that people would appreciate a mandatory tip based on the gross (pre-discount) total, I think some friendly persuasion could get some of them to do better on the tip. It sure beats the 10% average tip at Oceanaire that Chw mentioned in an earlier post.

I think most of the people who claim to tip well but get annoyed by something like an automatic gratuity probably don't tip well in the first place.

I always leave at least 20% and usually more. When I'm utilizing a discount of any kind, the tip goes up propotionally.

My first job was as a waitress (see it was so long ago that my job title was policially incorrect).

Anon -

In Miami, if an automatic gratuity is in place, it must be used for everyone.

I know in many of the fine dining restaurants, they would have a large number of Europeans who "didn't know" they were supposed to tip. So now every one has to tip.

This thing is not only refusing to remember my info, but is not even acknowledging it in the first place.

I'm getting tired of being Anonymous.

I feel your pain. I'm having problems on this end, too. It just wiped out an entry I had written. It's so sad, by the way. This and four other anonymouses are Rosebud. EL

Sister Rosebud--welcome back! Stop hiding your light under a bushel.

Ah, thank you, Kimmer .

Large groups tend to stiff wait staff on tips. I know we all say we make sure that doesn't happen, but it does. So, the automatic gratuity is to try to protect employees.

Unfortunately, it generates a lot of hate. The *right* way to protect house staff is to pay them a living freaking wage, like in Europe, and let tips be non-mandatory and for really great service.

While everyone here in the sandbox can proudly proclaim they tip 20, 25, even 35 (really, really?) percent, we are not the majority and never will be. So while you can snark to your server "I WAS going to tip 80% until you autogratted me", the reality is most people tip far less, and large parties (especially of friends or acquaintances) throw money in and theres one or two people who wont fess up to being the bad tipper in the bunch.

I hate (read HATE!!!) the unannounced service charge. I realize its ultimately my fault, but I have tipped 20% on top of an 18% gratuity multiple times.

Well, Lisa; Gee let's also reform health care in this country. Well, as you know President Obama wants to set up "Death Panels" (from no less an authority than the infamous Sarah Palin.) It would be great to have a European system here for wait staff. Just don't see it happening.

I used to always tip 15%. Now I tip 18%.

I didn't get any more generous. When the sales tax went from 5% to 6%, my method of tripling the tax to figure out my tip resulted in a pay raise for every person who waits on me.

I assume, Earl, that you are being tongue in cheek, as we all know that the "death panels" are hyperbole. Unless, of course, you are talking about the employees of health insurance companies who look for ways to deny care (and, I used to work for one of those companies. I was horrified at the stuff they pulled).

Actually, national health care would help most restaurants. Their staff would have coverage, including preventive care. Since benefits are about a third of wages, and health insurance is the largest chunk of that, it'd enable small businesses to hire more people.

Hurray for universal healthcare - if only we could model our system after Switzerland....

RoCK, you just reminded me that my usual tip is actually more than 20%, as I figure it on the whole bill rather than the before-tax bill.

Lissa: Coming from Sarah Palin how could it be otherwise. Good point; health benifits is mostly lacking for restaurant employees

It wasn't long ago that EL had a post about blog topics that would not die, and tipping was prominent on the list.
I hope this isn't taken as snark, its not meant to be.

What about the places that charge the automatic gratuity and still bring a slip that has a place for a tip?

When paying for a round of golf, I've even been given a charge slip that has a tip line on it. I'm supposed to tip for just running my card through the machine?

We should put servers in charge of the Death Panels. Then tipping would really matter. Check please!

Point to RevEd! Several, in fact.

Wasn't sure, Earl. Didn't mean to slag you, but I just had a conversation with a neighbour about how wonderful Sarah Palin is and how those Death Panels would put her down, and...

Ok...maybe it wasn't much of a *conversation,* exactly. She's on Medicaid, and loves it, too.

Rev'Ed, that has to be the best on-topic comment I've read all day.

Yes, I do tip 20%. And that is on the total bill including tax, plus I usually round up to the next dollar, so it is somewhat more than 20%. And when in larger groups I usually throw some extra cash into the pot to make up for those who don't (or can't, these days). I'm lucky I can still afford to eat out regularly and do try to reward my servers for a job (generally) well done (Hint: automatically refilling my diet Coke scores major points with me)..

labrat: I'll add to that the only places I seem to have a problem unintentionally adding onto an automatic gratuity are for service that are middling-to-lackluster.

EL PLEASE READ THIS!

wow, I didnt take time to read all the responses but the ones I did read had this all wrong. as some of you might knw I have been in the restaurant biz 31 years and many I have worked for had this clause. it is not at all because "big parties do not tip well" it is actually a service fee. you see when you make your reservation for 8, 10, 25 people or whatever, we have to set up our whole section and not seat anyone there for at least an hour before your party arrives to ensure your table is ready, then as usually the case, your 8 pm reservation gets there at 8:30 and finaly sits at 8:50. they order drinks and talk, a few sparce appitizers and then dinner. then it's just keeping up with refills and the rare order of dessert until the check is paid and the last person leaves around 10:30, SO your table has taken up my whole section for the majority of the night costing me money I could have made turning tables 2 or 4 people at a time. your $360 "party" has made me $72 when I usually make $135 on that night. throw in the tip to the bartender and busboy/foodrunner and I walk with $60. unless the reservation is between 2pm and 6pm I don't even want it and will try to give it to a "rookie" or someone who isn't good enough to make as much as I usually do.

I read all the comments. This I hadn't considered. Thanks. EL

If the "Service Charge" is really for set up and lost revenue, why not make it a fixed charge rather than a percentage? Say $5 per person, and state up front, both when the reservation is taken and in all menus, that it is a Service Charge and not a Gratuity. Then people can decide whether they want to pay extra to eat there.

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About this blog
Richard Gorelick was appointed The Baltimore Sun's restaurant critic in September 2010. Before joining the paper staff fulltime, he contributed freelance criticism and features articles about food to area and regional publications. Along the way, he dispatched for short-distance trucking companies, shilled for cultural non-profits, and assisted in cognitive neurology research – never the subject, always the control.

He takes restaurants seriously but not himself, and his favorite restaurant is the one you love, too.
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