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Egalitarian Thug

(12,448 posts)
77. Yes, but you are in the one business that we've considered and rejected time and time again,
Wed Dec 18, 2013, 07:37 PM
Dec 2013

so I'm not sure how much of our experience is valid in your very competitive and finicky business. We just rejected a little Bistro we were thinking about buying because it was one of those once-in-a-decade opportunities that you just have to look at. It is almost perfect in every respect, but in the end it is still a restaurant and will still require lots of hard work, very long hours, and constant supervision.

Generally, I avoid employees like the plague as the number of problems in a business increases exponentially with employees. Once you hire one, you come under the authority of innumerable agencies, regulations, and laws that increase costs and hinder your actions. I've always built businesses on a partnership model (I call it the law firm model). Doing it this way, I've certainly made less money for myself but everybody has made far more overall, and that's one of the factors that has always attracted buyers when I'm ready to move on to the next thing.

Turnover can wipe out your bottom line and the only businesses that run with high turnover for long are those that exploit their workers. The more skill required, the worse it gets. OTOH, it usually takes more than money to keep good people in a dynamic employment environment like food & beverage. One thing I've found to help this is to make good employees out of average employees. It takes longer and costs more, but I think the returns are sufficient justification and when those inevitable and unforeseeable disasters strike, they are the people that will go above and beyond helping you get through it.

Aren't you charged a percentage of the tab by the credit card network? FarCenter Dec 2013 #1
Yes, you are charged, but the point is... dorkzilla Dec 2013 #2
Wow. athena Dec 2013 #8
I always try to make sure I and friends tip in cash... Historic NY Dec 2013 #91
AND it takes profits from the thieving credit card companies, which is always the polite thing to do jtuck004 Dec 2013 #103
*snort* dorkzilla Dec 2013 #117
I just realized this. I'm going to tip in cash from now on too. Maraya1969 Dec 2013 #170
that's what i do barbtries Dec 2013 #181
Me too. dchill Dec 2013 #190
I do that as well. xxqqqzme Dec 2013 #232
I suspected it, which is why I tip in cash even if I pay by card Warpy Dec 2013 #93
So Do I Leith Dec 2013 #98
We do that as well.. SoCalDem Dec 2013 #113
I think I might just ask some restaurant owners if that is their practice Maraya1969 Dec 2013 #171
me too. Probably common for people who know people who waited. n/t hollysmom Dec 2013 #156
I generally tip in cash for the reasons cited in this thread Jackpine Radical Dec 2013 #197
I always tip in cash Doctor_J Dec 2013 #200
I love you. Tell me where this place is and if I'm ever in your town Im eating there. TeamPooka Dec 2013 #10
Aw shucks... dorkzilla Dec 2013 #20
I am, and would support your business Skraxx Dec 2013 #36
I am. I'd love to patronize your business. RedCappedBandit Dec 2013 #38
We go to the city pretty regularly. HappyMe Dec 2013 #46
I'm in NYC also. The_Commonist Dec 2013 #53
Seriously! intersectionality Dec 2013 #54
Not in the City, its in Westchester! dorkzilla Dec 2013 #60
I'm originally from Larchmont NY but I live in Los Angeles now. TeamPooka Dec 2013 #92
Team Pooka-sent you a pm dorkzilla Dec 2013 #108
Next time the wife and I JackInGreen Dec 2013 #195
What part of Westchester tabbycat31 Dec 2013 #218
I used to live in Pleasantville. At one point, the town was lousy with my relatives! dorkzilla Dec 2013 #219
I will tell my friends tabbycat31 Dec 2013 #220
Everybody knows that when you use a credit card the business doesn't get the charged amount. FarCenter Dec 2013 #11
Some of us didn't know that the fee is taken from the servers athena Dec 2013 #15
Exactly the point... dorkzilla Dec 2013 #18
Just chalk it up to the cost of doing business (which it is) and having a clear conscience. AAO Dec 2013 #81
It ISN'T "the cost of...." You have missed the entire point. Entirely. WinkyDink Dec 2013 #137
Well, why don't you help me out and explain the point I missed. Entirely. AAO Dec 2013 #222
it's very common green917 Dec 2013 #164
CC companies can afford to offer to dog et al because some people pay 12% to 30% on a balance. FarCenter Dec 2013 #21
OK, good point. However, athena Dec 2013 #25
If the OP want to do so, fine by me. But the OP is kicking in an additional percent to the tip jar. FarCenter Dec 2013 #39
????? tazkcmo Dec 2013 #61
The part about the owner adding to the tip jar by not charging the servers the cc cost Incitatus Dec 2013 #115
No. Credit cards benefit the merchant. DirkGently Dec 2013 #152
Well, that's not quite the whole story skepticscott Dec 2013 #187
The fees should be a deductible on taxes. Lars39 Dec 2013 #196
The merchant, yes. It shouldn't be the employees. kcr Dec 2013 #94
That's the point exactly. The Wielding Truth Dec 2013 #183
"The business" does not equal "the wait-staff." WinkyDink Dec 2013 #136
You've just put your finger on the real issue: Why should the customer. . . MrModerate Dec 2013 #22
Dorkzilla, you might just set a trend this way. Brigid Dec 2013 #28
I'm just gobsmacked about this dorkzilla Dec 2013 #63
You're not in the U.S. I take it? dorkzilla Dec 2013 #33
Nope, Australia. MrModerate Dec 2013 #50
I disagree. A bit. Springslips Dec 2013 #37
And as a customer, I would prefer to be charged a fair price for the food and service Ms. Toad Dec 2013 #48
Agreed. The waitperson is the restaurateur's employee . . . MrModerate Dec 2013 #52
It also depends where you work sharp_stick Dec 2013 #227
Trust me. It would make the customers uncomfortable. Luminous Animal Dec 2013 #55
A.) How so? MrModerate Dec 2013 #62
Americans are very uncomfortable with not tipping... Luminous Animal Dec 2013 #132
I think Americans would welcome the end of tipping . . . MrModerate Dec 2013 #162
Not me. I *LOVE* tipping. Bonx Dec 2013 #215
+1 Egnever Dec 2013 #230
Your mileage clearly varies. n/t MrModerate Dec 2013 #239
Not this American Tien1985 Dec 2013 #231
Americans like to feel like skepticscott Dec 2013 #233
I'm American and I don't feel that. MrModerate Dec 2013 #238
Certainly not ALL Americans skepticscott Dec 2013 #240
Interestingly, the author/restaurateur you cited . . . MrModerate Dec 2013 #241
It proves nothing except you are full of yourself. Thanks in advance. n/t HangOnKids Dec 2013 #243
It's the American way. Restaurants will lose money if they go "Euro" in pricing (BTW, I personally WinkyDink Dec 2013 #141
Exactly.......... Swede Atlanta Dec 2013 #41
6% discount rate? horrible merchant account! mwooldri Dec 2013 #172
The problem is that not doing it directly cuts profit margins, and many owners wont do that. Xithras Dec 2013 #67
Agreed, but since I can't change the system I'll opt for protecting my people. dorkzilla Dec 2013 #112
You're awesome alato Dec 2013 #96
I hope that you succeed BIG TIME! Moostache Dec 2013 #118
I always pay tips in cash, even when I use a card for the meal. nt ProudToBeBlueInRhody Dec 2013 #145
Transaction fees are a corporate tax and should be outlawed. Banks already charge high interest Monk06 Dec 2013 #177
The tip isn't yours to fiddle with. n/t tazkcmo Dec 2013 #58
yes, that's it Trailrider1951 Dec 2013 #127
A local restaurant owner took tips freebrew Dec 2013 #199
Three phone calls would end that. Ikonoklast Dec 2013 #210
Missouri? freebrew Dec 2013 #244
The credit card fee losses was one of the reasons used to keep the minimum wage lower for okaawhatever Dec 2013 #75
AMEN!!!!!! dorkzilla Dec 2013 #116
And, most businesses set their prices to cover such costs. Only a greedy Hoyt Dec 2013 #84
Thanks, Hoyt, that's what I think (about the prices). I don't know why this is so convoluted. n/t dorkzilla Dec 2013 #121
+1000000 nashville_brook Dec 2013 #150
OMFG. You just turned my stomach. grahamhgreen Dec 2013 #109
63 cents not $1.13 svpadgham Dec 2013 #123
Good catch. My experience with greedy business owners is they are always trying to Hoyt Dec 2013 #130
wage theft: in for a penny, in for a pound nashville_brook Dec 2013 #151
Sorry, but you're wrong. eggplant Dec 2013 #139
it's also illegal as there's laws against wage theft nashville_brook Dec 2013 #148
that's called WAGE THEFT and it's not something I'd expect to see promoted by a DU'er nashville_brook Dec 2013 #147
You would think it would be.... justamama83 Dec 2013 #208
Some businesses charge credit card users extra to offset some of the fee taken by the bluestate10 Dec 2013 #163
I can't believe you even said that. Maraya1969 Dec 2013 #169
You are exactly right dem in texas Dec 2013 #178
Wow. Harsh. eggplant Dec 2013 #194
3.5% of $18 is 63 cents, also merchants should shop around for a lower rate Hamlette Dec 2013 #207
Can't imagine how much of this goes under the radar mragsdale45 Dec 2013 #3
Its SO SCREWED UP! dorkzilla Dec 2013 #9
Sounds like a good advertising point! arcane1 Dec 2013 #4
LOL!!! dorkzilla Dec 2013 #13
I take it that you are new to being a SBO? In the Big Book of Employment, this is one Egalitarian Thug Dec 2013 #5
Yes, always in business but never 100% my own. dorkzilla Dec 2013 #12
You're absolutely right, and that's how we've run all of our businesses. Egalitarian Thug Dec 2013 #23
LOL, no and I refuse to join! dorkzilla Dec 2013 #40
Yes, but you are in the one business that we've considered and rejected time and time again, Egalitarian Thug Dec 2013 #77
You will have to tell us where the place is nadinbrzezinski Dec 2013 #6
Suburban NYC - I think its a wee bit far for you!!! dorkzilla Dec 2013 #16
You mean the east north east county? nadinbrzezinski Dec 2013 #17
open a branch in milwaukee... keroro gunsou Dec 2013 #47
My server friends are grateful when they're tipped cash - specifically because of this practice. myrna minx Dec 2013 #7
I try to tip cash because sometimes the servers don't get the cc gratuity for weeks dorkzilla Dec 2013 #14
Many times servers are forbidden to talk about it too, even if asked by a customer myrna minx Dec 2013 #24
Well, I'm doing that from now on. Le Taz Hot Dec 2013 #30
I tip in cash... KansDem Dec 2013 #201
Tip in cash PDittie Dec 2013 #19
Good advice! nt valerief Dec 2013 #29
Well, the thing is that if the tip is given in cash, the restaurant gets the whole tip, Yo_Mama Dec 2013 #26
I don't understand your post. Le Taz Hot Dec 2013 #32
You're not understanding Glassunion Dec 2013 #51
When you tip me cash tazkcmo Dec 2013 #68
Yep Glassunion Dec 2013 #86
Yes, and the collection time is a factor Yo_Mama Dec 2013 #146
What? ohheckyeah Dec 2013 #73
What's so hard about it? Glassunion Dec 2013 #88
Clear as mud. Le Taz Hot Dec 2013 #78
What part don't you get. Glassunion Dec 2013 #90
No, not really. ohheckyeah Dec 2013 #95
Ok... Look at it like this. Glassunion Dec 2013 #101
Okay then..... ohheckyeah Dec 2013 #111
I couldn't resist. Glassunion Dec 2013 #122
As a smartass I have to say.... ohheckyeah Dec 2013 #124
I didn't start it... But it needed finishing. Glassunion Dec 2013 #128
And you finished it well... ohheckyeah Dec 2013 #138
That made absolutely no sense n/t kcr Dec 2013 #102
You're not reading close enough. Glassunion Dec 2013 #106
oh kcr Dec 2013 #174
They do, or should. Yo_Mama Dec 2013 #64
what? n/t tazkcmo Dec 2013 #65
Wow! I never heard of that before. nt valerief Dec 2013 #27
Two of the three chefs on Master Chef have been caught doing it. nt Fantastic Anarchist Dec 2013 #31
I hope they were shamed for this! n/t dorkzilla Dec 2013 #43
Which one didn't? catbyte Dec 2013 #107
EXCELLENT question! dorkzilla Dec 2013 #120
To be honest, I read about all three and I can't remember which two. Fantastic Anarchist Dec 2013 #191
Nothing new Glassunion Dec 2013 #34
Thanks for posting about this. I had no idea. Lex Dec 2013 #35
I always put the cash in their hands. heaven05 Dec 2013 #42
Here's a thought - Ms. Toad Dec 2013 #44
What a sweet person you are. truedelphi Dec 2013 #45
Thanks! dorkzilla Dec 2013 #56
I Always tip with cash haydukelives Dec 2013 #49
I already want to work for you! tazkcmo Dec 2013 #57
Congratulations, sheshe2 Dec 2013 #59
Thanks sheshe! dorkzilla Dec 2013 #66
If I get up your way, I will stop by~ sheshe2 Dec 2013 #131
Break an egg? LOL!!!! n/t dorkzilla Dec 2013 #133
To the people who say tip with cash. You know we are on the way to becoming a totodeinhere Dec 2013 #69
Excellent point dorkzilla Dec 2013 #72
Cash is becomming less common, but I don't see it going away anytime soon. Incitatus Dec 2013 #76
Not for a couple more generations, barring some dramatic social change. Egalitarian Thug Dec 2013 #80
I always carry $300-$400 in my wallet. I only use cash. AAO Dec 2013 #97
I do the same. I prefer paying in cash when visiting a restaurant. nt bluestate10 Dec 2013 #166
We were recently in Europe (Austria, Czech Republic, Germany) mnhtnbb Dec 2013 #186
Due to business needs, it is not uncommon for me to have three to four thousand dollars in my wallet Ikonoklast Dec 2013 #212
Well, as long as I am alive, it will not be a cashless society. Curmudgeoness Dec 2013 #104
Wow Incitatus Dec 2013 #70
Thanks posting and thanks for your humanity Gothmog Dec 2013 #71
Tell us about your restaurant.... FarPoint Dec 2013 #74
I'm waiting for the banks to act like they can charge you for accepting cash. Spitfire of ATJ Dec 2013 #79
Tip with cash Half-Century Man Dec 2013 #82
She probably wasn't amused at the time... indie9197 Dec 2013 #159
A full sized Morgan silver dollar over a hundred years old. Half-Century Man Dec 2013 #160
Iím a small business owner and always felt if you needed employees and could not afford to .. busterbrown Dec 2013 #83
There are a LOT of ASSHOLES in the resturant industry 47of74 Dec 2013 #85
Good for you! mbperrin Dec 2013 #87
Its illegal Sgent Dec 2013 #89
This is the shell game business plays on us... ReRe Dec 2013 #99
think I'll start leaving the tip in cash.. n/t EC Dec 2013 #100
Oh no, the cat is out of the bag! So many ways B Calm Dec 2013 #105
Tip With Cash SoLeftIAmRight Dec 2013 #110
never heard of such a thing. good luck with your new restaurant. Liberal_in_LA Dec 2013 #114
Thank you! n/t dorkzilla Dec 2013 #125
One of the reasons Notafraidtoo Dec 2013 #119
I never knew this. I'll do all my tipping in cash from this point forward. Scuba Dec 2013 #126
Trickle down ... GeorgeGist Dec 2013 #129
it's just as easy to levy the fee onto customers (if anyone at all)! good on you dionysus Dec 2013 #134
I live in one of the wealthiest areas of the United States dorkzilla Dec 2013 #142
Thank you for posting this! I will be sure to ask about this practice next time I go to a restaurant WinkyDink Dec 2013 #135
Yep. I used to sell POS systems, and I made a point of not mentioning that option (nt) Recursion Dec 2013 #140
i am gonna stress cash tips. we do not go out much. or i do not. but i will carry cash. pansypoo53219 Dec 2013 #143
People like you demonstrate why we should always support local businesses n/t eridani Dec 2013 #144
You need Robert Irvine of Restaurant Impossible. RebelOne Dec 2013 #149
k and r--good for you, dorkzilla. looking forward to hearing how well you are doing. will have to niyad Dec 2013 #153
thank you for posting this -- this is wage theft, and it's sad that it's so common that nashville_brook Dec 2013 #154
Some restaurants don't permit you to put tips on credit card, a different solution (n/t) thesquanderer Dec 2013 #155
Thats a great idea n/t dorkzilla Dec 2013 #157
I know, huh? It would never even cross your mind to do something so...conservative. Zorra Dec 2013 #158
Tipping technotwit Dec 2013 #161
Two Things... & a K & R !!! WillyT Dec 2013 #165
As a person who waited tables for years lupinella Dec 2013 #167
You did the right thing, Servers shouldn't suffer because credit card company greed. bluestate10 Dec 2013 #168
K&R Kurovski Dec 2013 #173
Good point. If we could just make doing the right thing "very sexy, " most of our problems Hoyt Dec 2013 #176
Sounds like you need a new exec chef. ananda Dec 2013 #175
Nah, he smirked because our opening has been delayed since July and Ive paid him... dorkzilla Dec 2013 #188
I have never heard of this. And will tip cash from now on. Archaic Dec 2013 #179
I did not know this, dorkzilla.. thanks for letting us know! Cha Dec 2013 #180
Thank you, Cha! dorkzilla Dec 2013 #189
For what it's worth, I work for a restaurant company that Fearless Dec 2013 #182
If your new restaurant was in NYC TomClash Dec 2013 #184
Post removed Post removed Dec 2013 #185
That is a f'ed up thing to do. yellerpup Dec 2013 #192
Thanks for the info. I will always tip in cash whenever possible from now on. DebJ Dec 2013 #193
I've waited tables and tended bar. xmas74 Dec 2013 #198
I grew up around the business... dorkzilla Dec 2013 #202
I would run it through your accountant at least madville Dec 2013 #203
Nope. Decision made. I'll charge $.25 more for the food dorkzilla Dec 2013 #204
+1. Egalitarian Thug Dec 2013 #205
I have a GREAT accountant, who happens to be my aunt! dorkzilla Dec 2013 #206
LOL! A close personal relationship is always the best way to go. Egalitarian Thug Dec 2013 #209
You should still check into the accounting. ieoeja Dec 2013 #213
Good for you! I'd eat at your restaurant! CrispyQ Dec 2013 #211
When you wake up in the morning rrneck Dec 2013 #214
LOL, yes there are! My response to them? dorkzilla Dec 2013 #217
My cousin worked almost 2 years for a restaurant owner who kept ALL the tips KurtNYC Dec 2013 #216
I always tip cash... ryan_cats Dec 2013 #221
this is why I always tip in tartan2 Dec 2013 #223
Because of this thread catrose Dec 2013 #224
Good for you! dorkzilla Dec 2013 #228
first of all, Congratulations on opening your own restaurant Pretzel_Warrior Dec 2013 #225
Thanks, Pretz! dorkzilla Dec 2013 #226
Good for you for being an intelligent business owner. DrewFlorida Dec 2013 #229
One more good reason to tip in CASH. n/t pnwmom Dec 2013 #234
Never heard of this in the 6 months I installed and setup POS systems neffernin Dec 2013 #235
How long ago were you doing that? dorkzilla Dec 2013 #236
Gosh... about 7 years ago now neffernin Dec 2013 #237
i did not know this... shanti Dec 2013 #242
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