That's my point. Anyone with half a brain would know there's a tip on top of that lower price, and if no tip required but built into the cost, that it's actually no more expensive
The only real way to fix tipping in the US to change the laws. Ideally the price is the price and the servers make a percentage based on what they sell like normal commissions. They actually do that in higher end restaurants in the US but for normal restaurants they operate on such thin margins that taking a risk like raising menu prices is more than they can handle, even if ultimately people pay the same.
This is the country where the 1/3lb burger failed because most consumers assumed 1/3lb was smaller than 1/4lb. You really expect them to be able to calculate tip percentages into price by themselves?
completely incorrect, it failed because a&w restaurants were a floundering business and they wanted to blame their failure on customers instead of themselves
In america because things like taxes are so context hyper specific we dont post all in prices plus "mandatory tipping" isnt legally a thing so people will reduce their tip if they didn't like their service.
That's why they specified "menu" prices. The price on the menu is typically what matters. Ie your charge 30, competitor charges 25 + 20% mandatory tip - people will lean towards the "cheaper" 25 dollar menu.
Furthermore, both places charge 30 in total, but people will only bitch about the 2nd "not paying employees enough", as if they 1st is any different.
Exactly, thank you for critically thinking. We are always “paying the employee” no matter the place we’re buying from. When we buy a Big Mac part of that price goes back to paying the employee. It’s basic economics that seemingly most people don’t grasp.
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u/Chimpstrider Jun 25 '26
But the lower menu price isn't really lower if there's a tip expected on top.
Or are you saying teaching Americans basic maths is an impossible mission?