Do you have to pay a service fee? Is tipping still a thing? And where does all that money go?
Support for LAist comes fromWith more and more restaurants using service fees as part of the bill, diners are often left scratching their heads in these situations, wondering if the 15% or 20% fee is to replace a traditional tip or if restaurant guests are expected to tip on top of that.
Instead, says Oakland employment lawyer Patrick Kitchin, they’re “a requirement of eating at that restaurant,” an agreement that customers enter with a business when they agree to pay to dine at a restaurant. Kitchin mentions a restaurant he works with in Los Angeles County that has redone their tipping pool policy and is charging a service fee.
The restaurant has to “clearly disclose” all service charges to customers before they make a selection. Colossus Bread, an independently owned cafe and bakery in Long Beach and San Pedro, did away with tipping. Instead of service fees, their plan consisted of instituting a mandatory 15% price increase for all in-house-made items and raising their starting wage for all entry-level positions for their employees to $21 hourly and $25 starting for lead positions. The idea would be that the price increase would offset the need for tipping.
In place of the tip jar is a sign explaining the price and wage increase to the customer as an opportunity to build awareness — a conversation that Colazas Rodriguez is more than willing to have.“We should talk about the fact that we're paying equitable wages to our whole crew. No one does that. I don't want people not to notice it," she said.
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