FOODIES were left in a fit of rage after a customer spotted an additional 18% fee tacked onto his restaurant bill.
The Living Wage Fee, which is becoming more common in the restaurant scene, sparked a debate among diners, even prompting some to vow to boycott the establishment.
GettyAmericans were left frustrated after spotting an extra fee tacked onto their restaurant bill[/caption] Threads/ant.really.do.thisThe 18% Living Wage Fee added on nearly $6 to a diner’s bill[/caption]Tipping culture in the US has been a long-standing debate.
This is partly due to contrasting norms in European countries, and also the increasing prevalence of touchscreen Point of Sale terminals that prompt consumers to tip, even at establishments where tipping isn’t traditionally expected.
As rising minimum wages and other operating costs put restaurants in a bind, many have begun imposing automatic Living Wage Fees, which range from 15% to 22% of the bill.
An alternative to tipping, or sometimes used to supplement tips, the service charge is aimed at providing a liveable wage to all restaurant workers.
While restaurants view the fees as a transparent way to address rising costs without bumping up menu prices or relying solely on tips, many diners have expressed frustration with these additional fees.
One angry customer shared a photo of his receipt from an unidentified restaurant in an Instagram threads post last week, calling out the 18% fee he was forced to pay.
“WTF is a living wage fee?” questioned the diner, disgruntled by the extra $5.94 he had to shell out.
Many Instagram users were similarly upset by the fee, feeling as if restaurants were taking things too far.
A handful of diners called the practice “disgusting,” stating that the owner was not qualified to be running a business if they could not afford to pay their employees a living wage without tacking on the fee.
Several customers vowed to boycott over the Living Wage Fee, with one writing, “I’d never ever eat there again and challenge that charge if not shown beforehand.”
Many Americans criticized the business owner’s move, arguing that they were “too cheap to pay employees adequately” so instead put the burden of rising costs on diners.
Others cited the new fee as a way for the restaurant to slyly raise prices “without having to update the menu.”
NO CHOICE
With inflation and food costs on the rise, some Instagram users were more understanding of the restaurant’s move.
One even defended the business owner’s decision to implement the 18% Living Wage Fee.
What is 'guilt' tipping?
Recently, tipping has become optional for services such as getting groceries delivered, ordering rideshare, or even getting a coffee to go.
Tim Self, an assistant professor of hospitality at Austin Peay State University in Clarksville, Tennessee, told CNBC that many people are tipping out of “guilt.”
“Customers are being asked to tip at the more traditional service encounters [and] also app-based services, ride-share and delivery apps.
“This gives the perception that tipping is everywhere, which does seem the case.”
Self says that Americans are becoming more familiar with tipping prompts on payment screens, saying “the guilt kind of washes over you.”
The average tip left for a full-service restaurant in 2023 was 19.4%, down from 19.5% in 2019, according to a restaurant trends report by Toast.
Tipping habits also differ between different generations, according to research by Blueprint.
Millennials are the most generous while those as from the Silent Generation are less likely to leave a big tip.
“Y’all been asking for no tipping – this is what it looks like,” they wrote. “It could reflect in drink/food prices but then y’all would say the place was too expensive.
“No one is trying to trick you – if they were transparent about the service fee stfu.”
For small, family-run restaurants, introducing charges such as a living wage fee could be crucial for the business to survive and to adequately support their staff.
This is especially true due to the current cost-of-living crisis.
High inflation, especially on food and energy, increases operating costs for restaurants, making it harder to pay staff a living wage without additional revenue streams.
Everyday Americans have also been hit hard by the cost-of-living crisis, which has led to a decrease in incomes and increasing financial strain.
Another factor placing an additional burden on Americans’ wallets is the tariffs on imports from foreign countries, which businesses and retailers often pass on to the consumer.
For example, a Walmart employee revealed that 4,255 fan favorites would get a “new price” in drastic change, warning shoppers of the “stupid” spikes.
Plus, the Macy’s CEO revealed a huge shakeup to fan favorites and confirmed an “aggressive” stance on price hikes.
Tipping laws in the US
By Lydia Doye
In the US, tipping is not a legal requirement. Tips are a voluntary act of showing appreciation for service, and should not be enforced. But tipping is an essential part of American culture and is expected at many establishments. At many restaurants, a tip of 20% to 25% on top of the bill is expected. Read More Details
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