Comments on: How to Avoid Paying a Mandatory Gratuity for Bad Service http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html The offbeat personal finance blog for responsible people. Thu, 16 Feb 2012 20:41:50 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Len Penzo http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html#comment-142593 Len Penzo Sun, 15 Jan 2012 08:08:51 +0000 http://lenpenzo.com/blog/?p=838#comment-142593 I'm very encouraged to hear that, Shannon! Like I said, as long as it is called a mandatory gratuity, I think restaurants have no leg to stand on when it comes to enforcing it. Besides, it's just bad business to force customers to pay a large tip if they've received crap service. I’m very encouraged to hear that, Shannon! Like I said, as long as it is called a mandatory gratuity, I think restaurants have no leg to stand on when it comes to enforcing it. Besides, it’s just bad business to force customers to pay a large tip if they’ve received crap service.

]]> By: Shannon http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html#comment-142461 Shannon Wed, 11 Jan 2012 18:19:30 +0000 http://lenpenzo.com/blog/?p=838#comment-142461 A restaurant in Philadelphia charged a mandatory 18% or 20% tip (can't remember now). I felt the service was not up to par and asked them to let me adjust the tip, which they did. Come to think of it, I probably would have let it slide if it was 18% so I'm sure it was 20%, way too high for the level of service I received. A restaurant in Philadelphia charged a mandatory 18% or 20% tip (can’t remember now). I felt the service was not up to par and asked them to let me adjust the tip, which they did. Come to think of it, I probably would have let it slide if it was 18% so I’m sure it was 20%, way too high for the level of service I received.

]]> By: A Few Thoughts from Aunt Doris: How to Make the Perfect Cup of Tea « Len Penzo dot Com http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html#comment-142409 A Few Thoughts from Aunt Doris: How to Make the Perfect Cup of Tea « Len Penzo dot Com Tue, 10 Jan 2012 14:23:44 +0000 http://lenpenzo.com/blog/?p=838#comment-142409 [...] not talking about that panther pee they serve in most restaurants here in the States. You know — a thick cup with a tea bag on the side! Oh, [...] [...] not talking about that panther pee they serve in most restaurants here in the States. You know — a thick cup with a tea bag on the side! Oh, [...]

]]> By: Len Penzo http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html#comment-142391 Len Penzo Tue, 10 Jan 2012 01:04:48 +0000 http://lenpenzo.com/blog/?p=838#comment-142391 Lyssa, I'm not sure it <em>is</em> very enforceable if a restaurant decides to tack on a "mandatory gratuity" and the customer refuses to pay it. Now, if they called it a "service charge" then <em>maybe</em> that it is another story. Not sure. I think you did the right thing and I am glad you held your ground. However, you might want to stay away from that restaurant from now on -- at least until that particular waitress is no longer employed there. Lyssa, I’m not sure it is very enforceable if a restaurant decides to tack on a “mandatory gratuity” and the customer refuses to pay it. Now, if they called it a “service charge” then maybe that it is another story. Not sure.

I think you did the right thing and I am glad you held your ground. However, you might want to stay away from that restaurant from now on — at least until that particular waitress is no longer employed there.

]]> By: Lyssa Kimball http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html#comment-142353 Lyssa Kimball Mon, 09 Jan 2012 14:06:54 +0000 http://lenpenzo.com/blog/?p=838#comment-142353 This is a HUGE pet peeve of mine...it is simply not fair to add a "tip" to the bill..that is the customer's choice based on the service they receive! Its not like you have ordered something and not paid for it. Restaurants should have absolutely NO legal right to do this. The last time I was at a restaurant that added the tip to the bill, I took a pen and changed it to what I wanted to pay. When the waitress came back to take the bill, I politely informed her that I had changed the gratuity because I did not feel that the service we had received warranted a $25 tip. (And it didn't...she was rude, forgot most of our order, did not come back in a timely manner to take our order, etc etc...not $25 worth of service at all!). Nothing happened and I do not plan to go to that restaurant again (the people that I was with joked on the way out that next time the waitress would "spit in my food!") Bottom line, the tip is the customer's choice, its not part of the restaurant bill. This is a HUGE pet peeve of mine…it is simply not fair to add a “tip” to the bill..that is the customer’s choice based on the service they receive! Its not like you have ordered something and not paid for it. Restaurants should have absolutely NO legal right to do this. The last time I was at a restaurant that added the tip to the bill, I took a pen and changed it to what I wanted to pay. When the waitress came back to take the bill, I politely informed her that I had changed the gratuity because I did not feel that the service we had received warranted a $25 tip. (And it didn’t…she was rude, forgot most of our order, did not come back in a timely manner to take our order, etc etc…not $25 worth of service at all!). Nothing happened and I do not plan to go to that restaurant again (the people that I was with joked on the way out that next time the waitress would “spit in my food!”) Bottom line, the tip is the customer’s choice, its not part of the restaurant bill.

]]> By: Wally http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html#comment-139256 Wally Fri, 14 Oct 2011 17:42:25 +0000 http://lenpenzo.com/blog/?p=838#comment-139256 I remember it started years ago when the IRS started to require service people to report their tips as income and tax them on it. Now the IRS requires service people to pay taxes on all sales, weather the customer tips or not. So now it just another tax that the government can add to all the other taxes. The restaurant owner is caught in the middle and he's lucky if he makes 5% profit on the whole mess. I sold my restaurant years ago and now operate a hot dog cart. No employees... no landlords... no problems... and happy customers. I remember it started years ago when the IRS started to require service people to report their tips as income and tax them on it.
Now the IRS requires service people to pay taxes on all sales, weather the customer tips or not.
So now it just another tax that the government can add to all the other taxes.
The restaurant owner is caught in the middle and he’s lucky if he makes 5% profit on the whole mess.

I sold my restaurant years ago and now operate a hot dog cart.
No employees… no landlords… no problems… and happy customers.

]]> By: What a $179 Cheese Sandwich Can Teach Us | Money Talks News http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html#comment-67247 What a $179 Cheese Sandwich Can Teach Us | Money Talks News Thu, 25 Aug 2011 10:07:05 +0000 http://lenpenzo.com/blog/?p=838#comment-67247 [...] know about you, but if I’m going to pay $179.40 for lunch – not counting my beer, plus tax and tip – I want something a bit more substantial than a cheese sandwich. In fact, I’d demand that [...] [...] know about you, but if I’m going to pay $179.40 for lunch – not counting my beer, plus tax and tip – I want something a bit more substantial than a cheese sandwich. In fact, I’d demand that [...]

]]> By: Len Penzo http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html#comment-65333 Len Penzo Wed, 10 Aug 2011 00:14:18 +0000 http://lenpenzo.com/blog/?p=838#comment-65333 First off, Jenna: please stop shouting. Second: So in essence you are suggesting that if my server gives me lousy service I am obligated to "pay the damn gratuity" because, well, it's the customer's responsibility to pay the server's wages. Did I understand you correctly? I thought that was the responsibility of her employer. Do you really believe servers are entitled to their tips whether they deserve them or not? Now I'm really curious. If your kid told you she was entitled to an allowance whether she did her chores or not -- would you give it to her? First off, Jenna: please stop shouting. Second: So in essence you are suggesting that if my server gives me lousy service I am obligated to “pay the damn gratuity” because, well, it’s the customer’s responsibility to pay the server’s wages. Did I understand you correctly? I thought that was the responsibility of her employer.

Do you really believe servers are entitled to their tips whether they deserve them or not?

Now I’m really curious. If your kid told you she was entitled to an allowance whether she did her chores or not — would you give it to her?

]]> By: Jenna http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html#comment-64991 Jenna Sun, 07 Aug 2011 15:35:51 +0000 http://lenpenzo.com/blog/?p=838#comment-64991 YOU SHOULD NEVER REFUSE TO PAY THE GRATUITY. ARE YOU INSANE??!! Because of your large party, you are preventing the server from picking up other tables. You are preventing them from making any money. Your large party needs more attention. They can't have other tables. All their attention should be on you. Not to mention, most problems with the kitchen arise because of large parties. It is very difficult to prepare 10 entrees to perfection all at exactly the same time without at least one side order being less than piping hot. PAY THE DAMN GRATUITIY IT MAY BE THE BULK OF THE MONEY YOUR SERVER MAKES FOR THE ENTIRE EVENING. STOP BEING SO EFFING CHEAP. YOU SHOULD NEVER REFUSE TO PAY THE GRATUITY. ARE YOU INSANE??!! Because of your large party, you are preventing the server from picking up other tables. You are preventing them from making any money. Your large party needs more attention. They can’t have other tables. All their attention should be on you. Not to mention, most problems with the kitchen arise because of large parties. It is very difficult to prepare 10 entrees to perfection all at exactly the same time without at least one side order being less than piping hot. PAY THE DAMN GRATUITIY IT MAY BE THE BULK OF THE MONEY YOUR SERVER MAKES FOR THE ENTIRE EVENING. STOP BEING SO EFFING CHEAP.

]]> By: phil http://lenpenzo.com/blog/id838-how-to-avoid-paying-a-mandatory-gratuity-for-bad-service.html#comment-58589 phil Sun, 29 May 2011 01:43:37 +0000 http://lenpenzo.com/blog/?p=838#comment-58589 What is with the 18%?? Jesus Christ only asked for 10%.. Are we being asked to tip or pay the servers wages?? What is with the 18%?? Jesus Christ only asked for 10%..
Are we being asked to tip or pay the servers wages??

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