Restaurant service-fee policy angers employees and patrons

clipped from www.cleveland.com

Sunday, I told you about Yours Truly, a Cleveland-area restaurant chain that now deducts a percentage of the processing fee from tips left on charge cards.

Most customers, and I’ve heard from hundreds of them so far, don’t agree. They think it’s unfair to deduct a fee from the tips of servers who depend on gratuities to make minimum wage, and it’s unethical to hide this practice from the public.

Then she explained that, not only does the restaurant deduct the charge card fee from her tips, but she must also contribute 3 percent of the net sale of every table she serves, regardless of how much she is tipped.

“Half of that 3 percent goes to the bussers and the hostesses,” she said. “The other half goes to the house.” My turn to be stunned.

“The house? You mean management keeps half of the money deducted from your tips?”

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Ok so hear is my thing, the restaurant has to pay anywhere from 1.5 to 3% service fee to the credit card company on the total run through on the bill. So on a $100 dinner they loose $3, not a big deal food is a pretty high markup item and it’s likely accounted for.

So the issue people are having is they don’t think it should come off the tip! Why the hell not, you think the restaurant should have to suck it up, which by the way will not happen! One way or another they will pass that along to either you the customer by raising the price a bit more or they will just pay the server a bit less.

I’m a little troubled by the article as well, my issue is in the last couple bits I clipped. I find it misleading, I had to read it a couple times to get it straight. The restaurant take a 3% cut and splits it two ways. Half that to the bussers and hostesses and the other half to the “house.” So to recap that 1.5% of the tip goes to the other employees and 1.5% of the tip is held by the restaurant. Now they made it sound like half the entire tip goes to the house which from what I gather is not true. Now this I do not agree with, I think that yes, they bussers and hostesses should get a piece of the tip, they helped earn it but the house should NOT be taking any tip more from anywhere!