Restaurant Service Charge

We went to a nice Brunch in Miami a couple weeks ago and when we got the bill there was a ( Correction 18% service charge ) originally posted 20 %service charge added and a suggested normal tip on top of that. I talked to server and they stated the service charge is not a tip for her and goes to all staff. I Tipped normally but will NOT be going back after paying 38% above by bill.
Anyone else experience this?

Update
People been asking the restaurant name
https://laindustriabakery.com/?fbclid=IwAR2xOuUAAHgAzsxA4hSG5c0Zj3kY-3wsLuXi3iD1B4H094u978y7l4pAeaI
This was the first time I experienced this,
Iā€™ve been doing some additional research since I posted and this unfortunately is becoming common on South Beach, and Downtown Miami with many restaurants.

Looking into it more I believe the server receives some of the service charge but it gets distributed to staff that the server would not normally tip out, and I was mislead that they donā€™t get the service charge.

@kevi2900

I hope you donā€™t mind but I moved this to the Parent Cafe

Wow, no Iā€™ve never seen that before. Iā€™ve been to restaurants that pay a living wage so menu prices are higher and they donā€™t accept tips. And Iā€™ve seen places that add a gratuity automatically for large parties.

But never a base 20% extra plus another tip expected on top of that! I wouldnā€™t be going back either.

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Itā€™s common in NorCal to add a ā€œsurchargeā€ to (supposedly) cover employer mandates like health insurance and paid leave for staff. Clearly separate from the regular tip (though some ā€œsuggestedā€ tips include it for the purposes of calculating 15/20/25% and some donā€™t, just like some include tax and some donā€™t). But thatā€™s typically 5-10%.

Yes, it has become more and more common. I believe it started during Covid when almost all business was takeout. The back of house was doing most (all) of the work and the restaurants decided instead of raising the wages, to pass the extra cost of keeping good help onto the customers. At least thatā€™s what Iā€™ve been told by a few places.

Havenā€™t seen that often, but I think I would be inclined to leave less of a tip assuming that the server also shares in the service charge. Agree that 40% surcharge makes no sense. I would rather the restaurant raise prices slightly, adds a small surcharge, and tip normally.

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My understanding is that all tips are usually supposed to be shared among all staff, which does not always happen (especially if tips are left in cash). I would have asked to speak to the manager after seeing such huge surcharge and a request for a tip. Why was this not printed in bold at the top of the menu and only came to light when the check was brought? I donā€™t mind leaving good tipsā€¦ but I donā€™t like extortion.

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Have also seen something called kitchen appreciation fee - basically an extra surcharge which is not optional (you have to pay).

Wow! Thatā€™s insane! The whole point of going to a restaurant is to be served!

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20% - I wouldnā€™t have left a tip other than a few % if it was outstanding.

Typically, those kind of charges are added if you have a certain party size - so they can ensure the server is not going to get stiffed.

I was peturbed the other day that a bill at a place my daughter wanted to go to had a 2% charge - for the chefs. I left 20% but how they pay their folks or how they share tips is not my business. They should charge appropriately.

I also ate at a chicken place in Florida and overheard a conversation where the counterperson told someone leaving a tip on the CC that they donā€™t get it, that the owner raised their salary and uses the tips to compensate for it. Again, not my business what he pays his employees but a tip is specific for the folks serving you.

I go to Miami quarterly and Iā€™ve not seen that. But if I did, Iā€™d hate to say it, but Iā€™d be stiffing the servers.

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@kevi2900 - would you mind dropping the name of the restaurant? Iā€™d actually like to do some research on this.

A quick Google search found this from 4 years agoā€¦

Unfortunately this has become common practice in [Miami Beach] Most places in Miami Beach automatically add a service charge from 18 - 22%. And then leave a space where you can add an additional tip if you would like. If the service was exceptional feel free to add a few dollars. But there is no way you need to tip anything on top of the included service charge. My last visit to Miami Beach a few months ago and even the Starbucks added a 20% service chargeā€¦

It sounds like the person you need to be perturbed with is the server, frankly I think they misled you -

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And then there are places like Brasa in Minn/St. Paul that we visited on a college trip. This is on their menu and we were reminded of it when we tried to tip. You would think it would really drive up the prices (itā€™s a fast/casual place), but the prices were very reasonable for what we got (especially considering we werenā€™t paying a 20% ā€œtaxā€ called a tip). And it was so good we went twice! There is no reason restaurants have to try to pull a fast one to provide a living wage.

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This makes me feel better. Thanks

Yes, Iā€™ve seen this actually and asked about it at a business lunch I was buying (now that I think about it) - itā€™s because they have a lot of European and South American tourists - and their culture is not to tip.

Thatā€™s what I was thinking, too: was the server trying to pull wool over the customersā€™ ears?

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Having grown up in the hospitality industry, I can say, with little doubt, the server was indeed not being truthful. It would be easy enough for the OP to find out by simply calling the establishment and asking straight up.

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We have a few restaurants here that add a 2-5% ā€˜back of the houseā€™ charge. One breakfast restaurant (right near DU) has a 20% surcharge but then says tipping is optional, but encouraged for good service. The waiter doesnā€™t get the full 20% but gets some of it. Yes, your bagel with cream cheese can end up costing you about $10.

Minimum wage in Denver goes up to $17.29 on Sunday. It is more than an 8% increase. Not sure what it is for wait staff, but for the kitchen, bus boys, hostesses, it will be $17.29. Totally expect the Starbucks on the Denver side of the street to charge more for a drink than the one on the other side of the street in a different county. The brand new hires are making $17.29, so the shift leaders, the managers, etc are making more. Even a plain black coffee is about $4.

I eat out much less than I did before covid. Even McDonaldā€™s got rid of the $1 drinks and raised all the prices on the value meals.

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Weā€™ve been to a number of restaurants that have moved away from a tipping model to automatically adding the 20% surcharge but like others have said, there is no expectation for any additional tipping.

Recent dinner at SF restaurant: 4% health charge, plus the 20% ā€œlarge party**ā€ automatic charge (there were 5 of us), plus sales tax of 8.625%, which was applied to the surcharges as wellā€¦and thenā€¦ there was a big line for a Tip. ha haā€¦

(Had we only been a group of four, there is a 10% ā€œdine inā€ feeā€¦).

Iā€™ve seen 3-5% added as kitchen fee or something similar plus youā€™re expected to tip waitstaff. Never had 20% plus tip expected. I wouldnā€™t return either.