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Went to a restaurant in LA today and when I got the check I noticed that it was a bit higher than it should be. Then I noticed this 18% service charge. So... We, as customers, need to help pay for their servers instead of the owners paying their servers a living wage. And on top of that they have suggested tip. I called bs on this. I will bet you that the servers do not see a dime of this 18% service charge. [deleted a word so it wasn't a grammatical horror to read]
What is this nonsense? I mean, since the customers are the only source of income for a restaurant, of course the customers pay for the wages.
But why hide that behind obscure markups (that's all a service charge/tip is)? Why not just price the food 18% higher and drop the service charge?
That way, the restaurant earns the same money, but the customers actually know what they are going to pay and the restaurant visit doesn't end on a down note when paying.
Does anyone now if the restaurant pays different taxes on food/drinks sold and tip/service fees?
In Washington (everywhere is different) a service fee is taxed as income to the restaurant. A restaurant is not taxed on tips. It's better for the restaurant to not do a service fee (less taxes) than tips
If a Washington restaurant is charging a service fee, it has to be posted. The verbiage has to say how it's being used/if the restaurant is taking any portion