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MARKETANALYST.US / ECONOMY & WORK

Man Calls Out Pizza Outlet for Charging High Service Charges While Introducing a No-Tip Rule

"We're now a no-tip necessary establishment, instead we'll now apply a 17.5% service charge on your bills," reads the new announcement.
UPDATED FEB 8, 2024
Cover Image Source: Tipping for services (representative image) | |Pexels | Photo by Rdne Stock Project
Cover Image Source: Tipping for services (representative image) | |Pexels | Photo by Rdne Stock Project

The trends of dining out have sparked conversations on TikTok and Reddit about tipping culture in the US. Users have different opinions on the topic as customer opinions affect both customers and the people who work there. The internet is divided over whether the servers get sufficiently tipped. A Reddit user @Snoo_94642 sparked a frenzy conversation when he posted a picture of the Stone's Throw Pizza announcing its new rule that says, "We're now a no-tip necessary establishment, instead we'll now apply a 17.5% service charge on your bills."

Image Source: Pexels|Photo by Pixabay
Image Source: Pexels|Photo by Pixabay

The restaurant further mentioned that they stopped the practice of tipping and the service fee will contribute to the fair wages for the waiters who serve customers. But that's an indirect way of asking for tips and 17.5% is a pretty hefty charge. This change at Stone's Throw Pizza proved to be a ray of hope as these service charges were non-taxable per the laws. The notice of service charger further focuses on mentioning that this money will straight away go for welfare and salary benefits of the employees working at the outlet. The owners believe that this is a fair step that enhances workplace values. There was also a QR code placed which the customers could scan to know more about the initiative and the motive behind the change.

In the Reddit post, a link to Pizzeria's website was shared to show how companies are moving towards the policy of removing tips as it is confusing for both customers and staff. The owners at Stone's Throw Pizza further explained why they chose the service charge of 17.5% as the Vermont Department of Revenue mentions anything below 20% will not be taxed for employees. This applies to all the food and drink bills.

The restaurant further says that tipping isn't required but if some diners wish to tip, they can write it on the credit card slip or leave cash on the table. Some diners feel that tipping enhances their dining experience and they have a habit of doing that. Stone's Throw Pizza further announces that the service charge policy is working in all of its four locations. They mentioned that all of the service fee money received goes for the welfare of the staff and is not used for business expenses or any other investments.

Image Source: Reddit| @Snoo_94642
Image Source: Reddit| @Snoo_94642

@Snoo_94642 along with other Redditors expressed his disagreement with the policy of charging service fees. The restaurant justified its service charge by saying that now you don't need to go to the counter and you will have food on the table. Other users were not happy about the mandatory service charge and the user @chronocapybara commented, "10 percent and I'm down. 17.5 is way too much." Another user @ddcrx wrote, "Translation: Forced 17.5% tip."

Image Source: Reddit| @Snoo_94642
Image Source: Reddit| @Snoo_94642

Other Redditors pretty harshly criticized the restaurant's decision, with @lunch22 commenting, "Goes to support fair wages? WTF? They're outright admitting that they don't pay fair wages otherwise. I don't mind the fee if it truly does go to employee pay, but just say it's a service fee and there's no tipping and be done with it." Others suggested that if they wanted to extort money, they could just increase the menu prices and call the whole situation nonsense.

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