Comment on Tipping culture npcs

• IHeartBadCode@kbin.social ⁨10⁩ ⁨months⁩ ago

  Why does everyone always assume that if minimum wage went up or if tipping went away that the customer would absorb the cost?

  There’s no technical reason for why, just based on current evidence where 100% of the time producers shove any increase in cost to consumers.

  You’re correct that there’s nothing technically preventing producers from eating the increase, it’s just that they’ve never done so, at least in the US.

  Only real example where that has happen was with Nintendo and the WiiU. I’m sure there’s more but the fact I’m drawing blank past that but could name you over a thousand times when the cost was shoved off to consumers kind of is my point in a nutshell.

  So that said, that’s why a lot of people just assume increase in cost of production equals increase in cost to consumers.

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  • SuicideSorcerer@lemm.ee ⁨10⁩ ⁨months⁩ ago

    You’re right but I guess my point is that we’re already talking about a hypothetical situation so ideally if we’re adjusting wages and tipping culture, then the responsibility would be put on the employer.

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    • IHeartBadCode@kbin.social ⁨10⁩ ⁨months⁩ ago

      I guess my point is that we’re already talking about a hypothetical situation

      Oh okay, fair enough. Yeah ideally that’s the direction it preferably should go in.

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• GlendatheGayWitch@lemmy.world ⁨10⁩ ⁨months⁩ ago

  Currently servers are currently paid minimum $2.13/hour. If they don’t make enough after tips to equal minimum wage over a pay period ($7.25/hour), then the restaurant is required to pay them up to that minimum wage.

  Labor costs for servers, bartenders, and others caught in this legal loophole would have to increase by 7-fold to get up to $15/hour. Many restaurants and bars wouldn’t be able to afford that large of an increase without raising prices, given that many have a profit margin between 3-6% per several sources.

  There have been some restaurants that have raised wages closer to $15/hour with varying success, but that hasn’t caught on widely yet.

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  • SuicideSorcerer@lemm.ee ⁨10⁩ ⁨months⁩ ago

    Well then if a business can’t operate without underpaying their employees or passing the financial burden to the customer then maybe their business doesn’t deserve to stay open.

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    • GlendatheGayWitch@lemmy.world ⁨10⁩ ⁨months⁩ ago

      That’s not really relevant. My reply was in response to statement that food shouldn’t be more expensive to the consumer with tipping removed. Obviously the revenue for the servers to be paid has to come from somewhere, so it’s either coming from the price of food or tips. If we get rid of tipping, the restaurant will have to raise prices to cover that cost.

      Huge chains could more easily pay a better wage than family-owned restaurants.

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