Restaurant owner wants to start tipping in NZ

Forums › Off topic › Restaurant owner wants to start tipping in NZ

RunningMan

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#316155 20-Sep-2024 16:17

https://www.rnz.co.nz/news/national/528519/should-we-tip-hospo-staff-in-new-zealand

An Auckland hospitality entrepreneur hopes to flip the New Zealand culture of 'no tipping' at bars and restaurants.

Luke Dallow told Morning Report a struggling economy means many hospitality spots are employing fewer waiters, so diners are getting slack service.

With the cost of goods and rents increasing, something needs to change, he said.

"And what is controllable is wages. My concept would be to reduce the menu price on the menu, then that would get more consumers into the restaurants or bars.

"Now to top this up you would tip, encourage tipping."

Please, please, please do not let this American practice become acceptable in NZ.

"I want my staff to go out there and hustle, hustle, hustle and charge out a $13 glass of Heineken and get bonuses on top of that with tipping."

Because customers really feel welcome when they're being hustled. Yeah right.

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#3284564 20-Sep-2024 16:26

What a dick

freitasm

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#3284566 20-Sep-2024 16:28

In my opinion, this is the stupidest idea today.

freitasm

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#3284576 20-Sep-2024 16:31

"Minimum wage is $24 or I think it's roughly around that at the moment, and a waitress or waiter could easily make $10 in an hour, that's about $44 in an hour, that's pretty good - I reckon that's pretty good money."

$24 + $10 is $34...

And if there's tipping, I bet owners would want to pay less.

From his LinkedIn "Real Estate Success Specialist".

🙄

tweake

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#3284577 20-Sep-2024 16:32

what a horrible idea. tipping is something they are trying to get rid of in many places. just a bad bad idea to even suggest such a thing here.

in reality, odds are staff would get paid less, customers would pay more, and the profit will go up.

CamH

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#3284579 20-Sep-2024 16:35

Bet you the next thing he'd suggest, is that there should be a different, much lower minimum wage for hospo workers because they now get tips.

Absolute terrible idea, the last thing we need is to import the worst parts of American culture.

Scott3

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#3284587 20-Sep-2024 17:18

Just got back from America. Tipping is really getting out of hand. This is not something we want in NZ.

You are expected to tip 12.5 - 15% even for really poor service.

Payment terminals often have really automatic settings (18%, 22%, 25%).

It is really common to get asked to tip for things where without service (i.e. a take away coffee). Often the payment terminal doesn't have the option for no tip, so one needs to click custom and enter zero.

The magnitude of problems with tipping in the USA, bit is so ingrained, despite the best efforts of several groups, it is not possible to unwind, and is growing (Many tipped staff have special low pay rates and are taxed on the assumption that they get a decent chunk of tips. Not tipping means these people get screwed over in the USA).

I didn't feel I got any better service in the USA than I do in NZ, (beyond the usual fake overfriendly stuff that comes with the USA hospo industry).

Suspect the staff of the employer in question won't be too happy if their pay gets cut back to minimum wage, with the chance to make more depending on customer mood. Wonder how much they expect they could cut off their menu prices with this pay cut?

thermonuclear

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#3284588 20-Sep-2024 17:28

Yeah...nah.

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mattwnz

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#3284589 20-Sep-2024 17:46

Tipping is used in the US to justify paying low wages to workers in service industries to decrease their costs. We don't want that sort of thing in NZ. We have a minimum wage for a reason.

Also the argument that they are employing less worker so people are getting a worse service is ridiculous. So if they got a tip, would their service magically improve? Or is it to allow the restaurant to pay workers less, which will then allow them to employ more workers?

SaltyNZ

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2degrees

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#3284594 20-Sep-2024 18:10

No. Pay them a living wage. I can still tip if I feel like it.

iPad Pro 11" + iPhone 15 Pro Max + 2degrees 4tw!

These comments are my own and do not represent the opinions of 2degrees.

Handle9

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#3284595 20-Sep-2024 18:13

What old mate Luke should do is have a service charge to pay his staff and let customers pay what they like for Heinekens.

That would get them through the door but probably isn't so appealing for him.

Behodar

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#3284602 20-Sep-2024 18:46

Alternative summary: Person who stands to gain from tipping (at the expense of staff and customers) wants to introduce tipping. More at 11.

freitasm:

From his LinkedIn "Real Estate Success Specialist".

This is giving me "SEO Specialist" vibes (for those unaware, it's a fancy way of saying "spammer").

wellygary

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#3284605 20-Sep-2024 18:53

RunningMan:

Luke Dallow told Morning Report

i'm guessing we're talking about the same guy here,

Hospo will suffer until people feel like they have $$$ in their pockets.... irrespective of trying to pay staff peanuts

Its coming but it will take till mid late 2025 for mortgage rates to make homeowners feel better,

16 Mar, 2022
"Hospitality veteran Luke Dallow has quit the industry, saying it is now "too hard" to run a profitable business and the industry is still at least 18 months away from any recovery."
https://www.nzherald.co.nz/business/restaurateur-and-hard-rock-cafe-pioneer-luke-dallow-quits-hospitality/3KG5EP7SA25YOD4QZMGEXT43CQ/

panther2

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#3284610 20-Sep-2024 19:30

Wouldn't tip

neb

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#3284612 20-Sep-2024 19:32

freitasm: In my opinion, this is the stupidest idea today.

Day isn't over yet, and Trump and Musk are still on Twitter.

Handle9

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#3284613 20-Sep-2024 19:37

Scott3:

Just got back from America. Tipping is really getting out of hand. This is not something we want in NZ

That's the thing.

I tip in the US as it is a norm and expected so I do it. I don't get to make the rules.

I also tip here in the UAE a fair bit as the people I'm tipping don't make much money at all and tips can make a real difference to their lives. The difference is it's not expected as a norm, it's something you do because you want to.

Tipping as a choice is fine, tipping as an expectation sucks and should be actively discouraged.

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