• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

NYC restaurants sued over automatic tips

Status
Not open for further replies.
Source: http://news.yahoo.com/blogs/sideshow/nyc-restaurants-sued-over-tipping-practice-205012719.html

Several New York City restaurants including Applebee’s, Olive Garden and Red Lobster, are being named in a lawsuit over alleged deceptive billing practices, "CBS This Morning" reports.

The network posted images of an Olive Garden check with a line for an “automatic gratuity” of 18 percent added to the price of a meal, as well as a place to add an additional tip, regardless of the number of diners. An Applebee's check added a 17 percent automatic gratuity, saying it was "payable at guest's discretion."

“They want to squeeze that extra little dollar that they can out of everybody,” Evan Spencer, the lawyer who brought the $5.5 billion class action lawsuit, told CBS, adding, “A tip and a gratuity are exactly the same thing,”

New York City law says restaurants may not add surcharges to listed prices except for groups of eight or more.

Darden Restaurants, which owns Olive Garden and Red Lobster, released a statement to CBS responding to the suit. “The automatic gratuity is a convenience for our guests," the statement said. "Our guests always have the option of adding to, reducing or completely deducting the automatic gratuity before paying their check.”

The big chains aren't the only ones adding on automatic tips. Tony restaurants like Per Se, Lavo and Morton's also work in an automatic tip, the food blog Grubstreet noted. The lawsuit could impact some 2,000 restaurants in New York City.

Ted Dimond, a tennis pro who brought the suit, told the New York Post he wants to see diners get back $50 plus $1,000 for "‘willful violations,’ where restaurants trick diners into adding a second tip when one is already included.

A Long Island man was arrested in 2004 for refusing to pay an 18 percent restaurant tip. But the local district attorney dropped the charge, Time magazine reported, saying tipping is at the diner’s discretion.
 

Ataraxia

Member
I love restaurants that do auto-gratuity because the total always ends up being less than what I would have paid had I been given complete discretion. Really, you've already included the 18% to the check for my party of six? Great, we probably would have left 25% or more but here you go.
 

Loomba

Member
I love restaurants that do auto-gratuity because the total always ends up being less than what I would have paid had I been given complete discretion. Really, you've already included the 18% to the check for my party of six? Great, we probably would have left 25% or more but here you go.

Well it's better losing 7% off you then 18% off of the majority of customers.
 

SeanR1221

Member
mqdefault.jpg
 

neoanarch

Member
Can we get a suit on delivery charges next? Pizza places add a delivery charge and still expect us to tip their drivers? I've stopped getting delivery thanks to this bullshit.
 
NeoGAF Tip Thread Time Saver

Initial Anti-Tipping Reaction
Good! Fuck tips! What do servers do that makes them so special? Why do they deserve tips?

Pro-Tipping Response
It's not about them being "special." It's just that within a tipping-based culture, the restaurant economy (everything from servers' wages, to menu prices, to number of staff hired) depends on the presumption that servers will be getting the majority of their earnings from tips. In other words: menu prices are artificially low, and if you don't tip then you're just free-riding on the system.

Anti-Tipping Follow-up
Well that's stupid. Other cultures get along just fine without tipping!

Pro-Tipping Rebuttal
That's beside the point. Right now, we are a tipping culture. And within our culture, our restaurant economy is set up to depend on servers earning tips. If you don't tip (and tip reasonably well), you're free-riding -- you're making a special exception for yourself at others' expense.

Further Anti-Tipping Follow-up
Well, then, we should become more like a non-tipping culture!

Further Pro-Tipping Rebuttal
That may well be true. (The socio-economics is mixed, but it may well be that we'd be better off without tipping.) But if you try to get us there by simply not tipping, all that will happen is that you'll burn the server working for you and nothing else will change. If you want to change our culture, then pursue legislative change.

Interjection from some Greedy Dude
Fuck all of this. It's my money. I get to decide how I spend it within the limits of the law. Fuck tipping.

Everyone in Unison
Get out of here, you greedy fuck.
 

Zoe

Member
This isn't completely clear. Is it because they're ignoring the law saying it has to be for 8 people and above?
 

Friggz

Member
arent restaurants supposed to make up the difference if an employee doesnt meet the state requirement for minimum wage?
 

Ban Puncher

Member
Ban 'mandatory' tipping, increase worker minimum wage, raise menu prices accordingly to compensate.

Welcome to every other first world country, Ameri-bros. Now about your public heathcare system.....
 
So, tipping hate thread round 2? I'm curious, in Europe can you make a career out of serving? Like 50-100 thousand dollar income? And in those positions, the server makes that off hourly wages?
 
This isn't completely clear. Is it because they're ignoring the law saying it has to be for 8 people and above?
Yes. They also don't put it on the menu, so you don't know it's coming.

This happened to me in a non-chain restaurant I go to somewhat often the other day, this waitress wrote a 20% tip onto my credit card slip (the 20% was on top of tax, too). She said it was policy. I still haven't gotten hold of a manager to complain.
 
Can we get a suit on delivery charges next? Pizza places add a delivery charge and still expect us to tip their drivers? I've stopped getting delivery thanks to this bullshit.

Delivery charge doesn't go to drivers typically. What would you sue them for? They are entitled to charge you a fee for having to deliver a pizza to you, as long as they don't try to hide it from you.
 

McLovin

Member
I don't mind the automatic gratuity. They should just remove the additional tip part from the receipt.
That isn't the point. Nobody should automatically get a certain tip otherwise there is no incentive to provide good service.
Keeping your job is the incentive. Most people that are going to tip, do it even if the service is bad. If you're not going to tip it wouldn't matter if they gave you the best meal/service of your life.
 
fuck tipping really... I usually just get takeout at that point or eat junk food or fast food.


Theres just something wrong with going out to eat with a few people and realizing you are tipping pretty much another entree.
 

SnakeXs

about the same metal capacity as a cucumber
Not this shit again.

To be the only person on topic, there is also an issue with NY accounting laws where gratuities must be taxed as income, so even if a 200 dollar check is hit with a 36 dollar auto grat the restaurant must pay 20-40% tax on it and then give the rest back to the employees.
 
Darden Restaurants, which owns Olive Garden and Red Lobster, released a statement to CBS responding to the suit. “The automatic gratuity is a convenience for our guests," the statement said. "Our guests always have the option of adding to, reducing or completely deducting the automatic gratuity before paying their check.”
original.gif
 

Sub_Level

wants to fuck an Asian grill.
At Carino's we weren't even allowed to charge an automatic gratuity EVEN IF THERE WERE over 8 guests! Have a table of 25 people? Still at their discretion. It was tough.

Worked for Darden a couple times and they're cool but I hope they lose!
 
D

Deleted member 20415

Unconfirmed Member
I'm 100% for people tipping at their own discretion. In this case, though, it's a safeguard tax on tourists.

Red Lobster, Applebees? The only people that eat there in NYC are asshole tourists. Asshole tourists that freak when the prices of their meals don't jive with their Applebees back home... so they stiff the waitresses and waiters.
 
The reason they do it so cheapskates don't skip out on tipping the waiter for service. Usually there is a requirement of a party though before they will do that.
 

Sub_Level

wants to fuck an Asian grill.
Best post. Do your job, don't get a tip. Do your job extremely well and go above and beyond, get a tip. Simple.

No you should ALWAYS tip unless the service is extremely poor. Standard service = tip. Exceptional service = high tip.

Sometimes a waiter is extremely busy and can't give your table all the attention it needs.
 
I cannot agree with the idea that tip is part of basic service.

By definition it is something that is added on top of basic service. It shows that the client is gracious of service above and beyond. At some point restaurant owners started getting greedy at their waiters making a decent wage plus tip and they decided to stifle that. And some people are rewarding that.
 
Delivery charge doesn't go to drivers typically. What would you sue them for? They are entitled to charge you a fee for having to deliver a pizza to you, as long as they don't try to hide it from you.

It's to cover gas/mileage that is paid to the employee for use of his vehicle. Most of the time I just go pick it up myself if it's near me.
 
Status
Not open for further replies.
Top Bottom