Denver wants to mandate tipping

The restaurants here in Denver want to require a 20% service fee. The interview with Mayor Johnston was very telling and very anti-consumer.

The city raised the minimum wage for tip-employees. Now tipping creates inequity that some servers make a lot of money. So if you don’t like the 20% service fee model then you hate servers and want their minimum wage reduced to make the system equitable again. Equitable by the restaurants’ definition of course. And it really doesn’t impact the consumer because it replaces your normal 20% tip.

This 20% charge would be in lieu of tipping which means some people won’t understand and tip on top of that. And everyone would now be required to tip and at a 20% rate. Oh and the service charge is taxed. And the charge does not go to the server/staff like tips do and are legally protected. The charge goes to the restaurant.

After the blowback yesterday when announced, Johnston fixed it by saying it was optional for restaurants. And that people have the option to not go to those service charge restaurants. So it’s all good man.

I’m okay with all of it except this part.

I generally tip 20% all the time without being told. But . . . there are times when I recieved service so bad due to the server just not giving a damn that I did leave nothing for a tip. I don’t care that the server was mad at the management, they need to at least try and earn a tip and serve the customer. Mandatory service fee is a stupid idea.

I just avoid business where tips are expected, both because I can never remember how much is supposed to be tipped and feel like I’m being blackmailed. And that I’m participating in a system whose actual purpose is to keep wages low and divert blame to the employees.

Some businesses already do that by saying that they include xx% on top of the cost for their employees’ welfare or some such, and it is NOT a tip. There was a pizza place in Portland that did that. Unfortunately, I didn’t notice the sign on the wall saying that was the case and I ended up paying 35% over the cost of the pizza. If it wasn’t for the fact that it was the best pizza in the city, I would not have gone back.

A tip is supposed to be a reward for good service. We could do away with tips entirely, that is debate for a different thread. But mandating the percentage? What sense does that make? Do an ordinary job and I will give you an ordinary tip. If I receive poor service, I will leave less or if it is truly bad, no tip. If I receive really good service, I will tip a lot more and praise the person to management.

I would patronize any business that required I pay a 20% tip regardless of the service I received.

The situation is very confusing to me. A service fee (mandatory or not) is not a tip. It’s another line item on the bill paid by customers. Maybe that’s the intent? Make billing at a restaurant complicated enough that some people don’t go to restaurants any more.

Exactly. The restaurants claim it will serve to subsidize the increased pay of their tip workers.

AIUI from this link the proposal is not 20% fee in lieu of tips, it is worse than that. It’s in addition to tips. It’s a service fee to help restaurants pay the new higher minimum wage. And then you are expected to tip in addition to that! Also, the 20% fee is taxable.

Blocked but if that is from Thursday, Johnston has changed his message after that due to the reaction.

Not sure why that would be the intent, but it’s undoubtedly the effect, at least for some customers (including me).