By Published On: May 29, 2018

On a recent trip to Seattle, I was taken aback over how expensive it was to eat out. How can it cost more for seafood on the coast than in the landlocked Midwest? Even more interesting was the automatic 20% gratuity charge. When you click on a Seattle restaurant’s menu page or scan the printed menu, you’ll see “20% service charge included” prominently displayed. This means you, my friend – it’s no longer reserved for parties of six or more.

Why? What’s happening? Being a curious sort of gal, I decided to dig into it further. Seattle, along with San Fran and D.C., are early adopters of a $15 minimum wage policy. Yay for all the hard workers now making more at these labor-intensive jobs. Boo for the general public being asked to take on this added cost.

To be fair – we would have had to pay for it one way or another. In marketing, we have scope creep. In the restaurant world, it’s tip creep. Whether restaurants increase their prices or add on gratuities – it all hits our pocketbook. But it looks like we’re hitting back – where it hurts. On social media.

I often look to TripAdvisor or yelp for “tips” on what recent diners enjoyed. The restaurants I chose in Seattle got exceptional reviews pretty much across the board. Except for the pricing structure which was cited as “BUNK” and “not a good value” among other equally disdainful remarks.

And how does a mandated gratuity affect service? Since these gratuities are spread out among all staff, waiters are potentially making less money than they were before and diners aren’t likely to tip beyond what has been pre-required. Although it’s benefitting workers overall, it feels like the opportunity for reward has been taken away from both the tipper and the server.

Something else I found in my research – it’s headed my way. Minneapolis is phasing in the $15 minimum wage over the next few years. Minneapolis has become a significant player in the U.S. when it comes to fine dining and we’ve proven we’re willing to pay for good food and good service. But people are always more supportive of change when they’re given an opportunity to be part of it.  From a marketing perspective, there’s no better time for MN restaurants to start spreading the word. An easy first step is to open up a dialogue about the change on their websites and social media sites and start collecting customer input. Some restaurants are ahead of the curve and already experimenting with their service plan. An article in Monday’s Star Tribune does a good job of addressing the issue from both the restaurant’s and staff’s perspective.

I’m sure most will agree that staff needs to be compensated fairly. It’s just a matter of how to accomplish it. Have you experienced similar situations either locally or abroad that might provide a better solution? Share your advice or opinion – we’d love to hear it.

About the Author: Carol Wahl

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