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Is 20 per cent the new 15 per cent? Restaurant tips nudge ever upward

This customer scrutinizes his bills closely (Image: pasukaru76)

In today’s Toronto Star, Amy Pataki reports on the latest trend sweeping Roncesvalles: credit card machines suggesting a 20 per cent tip. At least, that’s the standard at the strip’s two newest restaurants, The Ace and The Westerly. Pataki quotes Ace owner Greg Boggs explaining, “It’s not a sneaky thing, nor is it an expectation. I always tip at least 20 per cent when I go out.” Of course, the two Roncy restos aren’t the only ones that have moved to what Pataki refers to as “the Manhattan standard”—at the three locations of Mexican restaurant Milagro, suggested tips come in at 16, 20 and, ahem, 30 per cent (the last for larger parties). Long-time Dish readers will remember the furor that broke out when then-MPP David Caplan (who happens to be the brother of Zane Caplansky) proposed a bill than would ban automatic gratuities on large parties (that effort died on the order paper). We wonder how Torontonians will react to this new nudge northward. Read the entire story [Toronto Star] »

60 Comments

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  1. why is it the restaurant’s job to pay a ‘living wage’…since when is minimum wage a ‘living wage’ (forget the less than minimum that servers get paid at many establishments’.

    i wonder why nobody has brought up the union hotel servers who get paid more than minimum wage….or the bartenders (hotel and free standing) who get paid more than minimum and then get tipped by customers AND get tipped out by servers….

    what about tipping other professions? valet, hairdressers, nail techs, baggage handlers, coat check girls….politicians…..
    this is a pandora’s box that has been opened….

    January 19, 2012 at 10:43 pm | by parkdaleeater
  2. cab drivers, limo drivers, pizza delivery guy, the homeless person asking for change…how about the retail sales clerk? or commission based sales people? is there a difference? should there be a difference? why or why not?

    where is or what is the threshold? is it guilt in some instances? is it a reward or an incentive or an investment?

    i tip well, i get remembered and i get impeccable service as a result…

    January 19, 2012 at 10:52 pm | by parkdaleeater
  3. Service staff are paid like a dollar less than your standard Gap employee. It’s not like there’s a grievous divide!

    $8.90 vs. $10.25

    I’m tired of servers playing the “service wage card”. If you take in $1000 for an eight-hour shift and make $150 in tips plus $71 dollars in wages.

    Now let’s say you may $221 a day and work 4 days a week that nearly $46,000 a year. (I think. I suck at math.) And of that you can easily get away with declaring half of that amount!

    But seriously servers! Your job isn’t that hard, stop acting like it is! I’m looking at you Woodlot (worst service in Toronto).

    January 20, 2012 at 11:26 am | by sugarsugar
  4. Sorry for the message peppered with grammatical errors and spelling mistakes. Rage induced posts aren’t the best.

    I’m not against tipping (15 per cent after tax is fine), but it is an incentive not a social imperative.

    January 20, 2012 at 11:30 am | by sugarsugar
  5. take away deductions, take away the tip out to the others, factor in walk outs, factor in that some people tip less (and some more-but fewer by the sounds of this board) factor in that shifts are usually less and more part-time than full-time….not the monday to friday grind, always working weekends, nights and holidays

    the job is much harder and more demanding than working at the gap, as witnessed by this board as well…

    it sounds as if you begrudge a waiter making $45K per year-if they can…

    January 20, 2012 at 2:39 pm | by parkdaleeater
  6. This isn’t a case of being cheap (and yes I’ve worked in the service industry); its annoying when the price on the menu isn’t close to the final bill (especially when exceptional service isn’t commonplace).

    If the menu says $30, and two people dine and at the end of the day I’m implored (as per the manager who doesn’t pay his staff adequately) to pay 20% on the after tax bill, that equals $81.36 rather than $67.80 (almost $14 in tip). What did I get for that $14?

    Pay the employees more, raise the prices accordingly, and let the menus more accurately reflect that actual price.

    January 21, 2012 at 3:58 pm | by Shawn
  7. It does sound as if you are cheap. I love when people say they used to be a waiter or in the “service industry” (whatever that means). They were always the best waiter…why aren’t you still doing that? You couldn’t have been good at it or it was too hard or you didn’t make the big money that you are complaint about here.

    Here is a challenge for all you that don’t want to tip. Stay home-don’t go out-don’t feed the machine that you are complaining about. Try it a month or so-boycott the system. See if you can make a change. Stop bitching about it and do something about it.

    If you are successful we will see if your hot new restaurants can stay in business or if they will turn up as your next wagjag coupon offer

    January 22, 2012 at 6:50 am | by Cheapcheapisasoundabirdmakes
  8. Or just don’t patronize restaurants that have a 20% button. If you feel that a restaurant is expecting a specific extra percentage of your bill in payment, and you don’t agree with that, don’t eat there.

    There’s a wide choice of decent food in this city, and a lot of them don’t expect a 20% surcharge from its customers.

    Don’t worry, by 2016 we’ll be talking about that 25% button… lawl.

    January 22, 2012 at 10:29 pm | by Johnny Dangerous
  9. or enter your own percentage or dollar amount…i remember going somewhere and the suggested was 18% and i normally tip 20%…i used it-saved me a couple of bucks but if that is all they expected-fine. i also went to another place and hated it…it gave the option of 0% and i chose that

    January 23, 2012 at 6:12 am | by parkdaleeater
  10. most people on here that are outraged can’t read. All it says is that the tip percentage button on the cc machine says 20% if you have used on of these you will know that you can hit the $ sign and enter your own tip. People need to relax, if restaurant tip articles outrage you, you should get some ambien

    January 23, 2012 at 10:34 am | by ibarber
  11. I tip 15% pretax. With HST at 13%, a 15% tip after tax is equivalent to a 17% tip pretax. A 20% tip after tax is equivalent to 23% pretax.

    High end restaurants are pricing themselves out of the market. I can eat a lot better at home because I can buy expensive ingredients and expensive wine and I don’t have to worry about my gross margin or cost of food. I could probably also hire a chef to come in and cook it for me for less money than eating it in a restaurant.

    January 23, 2012 at 11:48 pm | by Bertie Wooster
  12. Tipping is fine….Tip what you feel is adequate. Don’t listen to anyone but yourself. The waiter is just someone who brings food and beverages. They educate you on ingredients and make recommendations. If you need to tell people how much more money you need, talk to your boss or get another job! This is getting out of hand. If we keep going on with this I’m gonna have my food catered in and buddy down the road can close his doors. I’m self employed and I never suggest that a client should pay me more because I don’t make enough.

    January 25, 2012 at 5:45 am | by Robert
  13. Is $24.95 ‘THE NEW’ $29.95 steak dinner?

    Absolutely! In a fantastic twist on the 20% tip debate, Torontonians have joined together to demand lower prices. In reaction to the recent news of restaurants taking an additional 5% of the meal (including taxes!) out of their pockets, casual and around-the-town foodies are speaking with their wallets.

    More news on this tomorrow night Jim!

    January 29, 2012 at 1:23 pm | by Matt
  14. Matt,
    There are plenty of low priced alternatives out there.

    February 1, 2012 at 7:16 am | by Cheapcheapisasoundabirdmakes
  15. It sounds like the perfect solution: just have the restaurant pay servers more. But there is no room in the margin to give employees raises. Restaurants who pay the standard $8.90/hour close their doors everyday in Toronto because their businesses are unprofitable.

    These servers are always going to get paid $8.90 and from the tips often servers will take home only half of what you leave on the table and the bussers and hostesses are REALLY getting the short end of the stick. The bottom-line is that if you’re tipping less that 10%, then you are taking the food out of their childrens’ mouths. I can’t believe someone wrote that ‘they are lucky if they get 10% out of me’.. What a lack of empathy.

    February 5, 2012 at 8:43 am | by JJ

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