My beef (complaint) this week is the sneaky way a 10% tip is added to our bill. Voluntary isn't Compulsory. There is a difference between a tip and a service charge;
Tips are discretionary (optional or extra) payments determined by a customer that employees receive from customers. Tips include, cash received directly from customers, or from customers who leave a tip through electronic settlement or payment.
Service charge: Amounts an employer requires a customer to pay are service charges. This is true even if the employer or employee calls the payment a tip or gratuity. Examples of service charges commonly added to a customer’s check (bill) include large dining party automatic gratuity, banquet event fee; hotel room service charge; and bottle service charge (nightclubs, restaurants) these charges are displayed and agreed in advance. You only have to pay the service charge if it is made clear, verbally or by written notice, before the meal.
Here lies the problem/confusion; tips are at the diner’s discretion, then you should be asked when paying the bill if you want to leave a tip. However, some places in Armenia are not offering you this option! If you are not happy with the level of service or if in general, you don’t want to leave a tip, you are not obliged to do so, nobody, not even the president (who!!) can make you do so. I had this experience last week in one particular place; they took the tip without asking. Having observed the running of the place I could see why- the owner is just a nasty person, only interested in money not caring or paying attention to the customers. Generally, the food is very good in Armenia, but when we are expected to pay between 20-30 thousand pesos per dish, why the sloppy waiting service? Waiting staff are too busy talking amongst themselves, with their back to the customers. Trying to get their attention is impossible; others only bring part of the order to the table “not good enough” it’s just unprofessional, to say the least! Other places “Baristas” are in your face telling you how good they are! People go out to enjoy themselves; the last thing they want is to spend their hard- earned money in a place where the owners haven’t got a clue how to run a business. Then they wonder why their business closed within the first year.
I spent 29 years working in catering/hospitality, in 4 and 5 star hotels and restaurants. In 1989-1990 I was in the “The Good Food Guide” as head chef in one of London’s top restaurants, so I know the pitfalls (trap) where this will end. I agree with a fair tipping-system, but it could and will be used to exploit the workers by “SOME” employers. After all, nobody wants to see this becoming the workers- equivalent of the “Valuation Tax” Look how that ended!
How and why?
Owners/managers control the tills (money) employees have no way of knowing how much money is/was left in tips. The owners could keep a share of the money for themselves. Favourite employees could get a bigger share of the tips. Not all (staff) employees would receive tips (unfair). The worse case-scenario; part of the tips could be used as part-payment towards employees wages/salaries. (illegal).
The basic rule of tips is that they belong to employees, not the employer. Employees can't be required to give their tips to the company or to share tips with managers or supervisors. In the UK some companies are under scrutiny for this. I found it strange when I first came to Armenia; tipping wasn’t the done thing back then. Everywhere in Europe, you will find next to the till a “Tip box/jar/glass” some of these are under lock and key (no stealing) which is then divided-out equally between all staff at the end of the shift/night. Every employee “front and back of house” should be equally included in the tips. Cash tips are tax –free, meaning your employer cannot tell you otherwise, some countries employees pay a small percentage of tax on Credit card tips, something to do with handling fees which are normally paid at the end of each month. Next time you are out, don’t be afraid to ask the owner and also discreetly ask the waiting staff how the “tip system” works in that establishment. If this is going to become law, then the government needs to set out written guidelines which have to be displayed in public for the customers to understand. At the moment no one knows exactly what’s going on!
“Front of house” waiting/ bar staff, reception. “Back of house” chefs, porters and cleaners. Other names for waiting staff: Waiter-male, waitress- female, food server, host or attendant. Please don’t ask me the “Non-Binary” terms for these as I haven’t got a clue!
Until next Tuesday- Happy Halloween
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