I really don’t think the people listed above have ANY understanding of what will happen if $15 with no tip credit passes. It will be one of the following or a combo.
- Eliminate all tipping and take away the tip line on any credit card transaction. Prices will be increased by 10–20% for all menu items.
- Start a service charge of 20% on all checks. This will NOT go to the staff, but to the restaurants in order to help pay for the $15 wage
- Cut back on staff, and since servers will be making $15 they will be having bigger sections and making way less money
I do NOT see what is wrong with the tip credit. You will always make at least $15 hour, and if you make more than that in tips, you get to keep them. It is a win/win for both servers and owners. There is NO RESTAURANT that will not do one/all or a combo of the above. Minneapolis restaurants will be left to hack servers- all the professional servers will move to St Paul or the Suburbs.
I am NOT in the restaurant business, nor have any financial steak in one. I have been following this issue and am amazed at the lack of understanding.
Please try and educate yourself, talk to some restaurant owners and see what they plan to do. Ask how the tip credit works- they want good servers to make great money- but they simply can’t afford a $15 wage with the current tip system in place.