If your business model requires you to pay your workers less than a livable wage, you do not have a viable business model.
Restaurants are getting killed by greedflation not higher wages. When everything is expensive people start cutting back on discretionary expenses like eating out.
Yup, my SO is a tattoo artist who is about to have to close up shop because the economy is fucked, and isn’t going to get better any time soon.
Luxuries are the first to go when people start tightening their belts.
Prices have skyrocketed along with tipping exploding beyond reason. The last place I sat down to eat had automatic options of 20, 25, and 30 percent.
I remember 15% being customary and anything above 20% being super generous.
I’d wager this isn’t just Denver that restaurants are struggling in.
Before COVID restauranting was already a hard fucking business to stay afloat in the US.
It’s been a fucking bloodbath in restaurants all over ever since COVID. I know chefs who just can’t find a fucking job because half the places have shut down.
In Los Angeles restaurants are still closing regularly
Shari’s in particular got hit hard in the last six months.
https://www.thenewstribune.com/news/business/article294356624.html
Lots of them shutting down all over the northwest, where they’ve been a staple as long as I can remember.
So how much are they asking for in tips? I note that the article states a dramatic increase in tipped wages, is the restaurant still asking for traditional 15-20% on top of increased menu prices?
The restaurant has had to add a 23% service charge in lieu of gratuity to bridge the wage gap between front and back-of-house staff.
Is this a 23% charge on top of tipping the front-of-house staff? Isn’t a “service charge” disingenuous? Why not raise prices by 23% instead?
Doesn’t “in lieu of gratuity” mean “instead of tipping”?
And they don’t increase prices 23% because customers would see the new prices and just leave
I used to live going out to eat. But prices are insane and they have time if given fees. No thank you.