In New York, residents have expressed discontent with a phenomenon dubbed "tipflation."
Traditionally, tips were associated with bars and restaurants, but recently, shops and various service providers have started including gratuity options at the point of sale via card machines, prompting some individuals to feel obligated to leave a tip.
A customer who recently dined at the restaurant shared a photo of his bill, revealing a pre-tax total of $49.50, which escalated to $62.93 due to taxes and the added service charges.
At the bottom of the receipt, a note clarifies: '18.00% Service Charge Included. For parties of one or more, an 18.00% gratuity is applied automatically. If you have any questions, please speak with a manager.
The diner shared the receipt on the subreddit, writing: “This restaurant has an automatic 18% service charge for parties of ONE or higher.
“I’ve seen restaurants include gratuity when it’s a large party but never for parties of one!”
Many Reddit users expressed anger and said it was a 'clever way to lose customers.'
One person said: People then can make an informed decision of value for money. And no, I expect excellent service every time, so the service component should never change!
A second wrote: The restaurant needs to decide if it is a gratuity or a service charge as they are treated differently for tax purposes. Additionally, a gratuity has to be freely given without compulsion.
A third comment: Some Aussie high-flying restaurants charge a "corkage fee" or "service fee" which goes straight to the owner. Many have challenged the charge and won. Over here tipping is optional because wait staff earn far higher wages than what they would in the US. I only tip a couple of bucks IF the service has been exceptional.
Another said: Remember when 15% was the norm? the funny thing about those making income from tips already get a raise every time food goes up. for example. if a bill 5 years ago avg $100 and the tip was 15% they made $15. now that same $100 check is over $120. so their tip went from $15 to $18 for no other reason than the restaurant raised its prices. so why are the tip % also going up to 18%, 20% and 22%?
Yeah, I'm of the school where a tip is for service where 10% is being normal, good gets 15% excellent gets 20%, and great 25%. Sh.tty service gets nothing. Someone else wrote.
Let's face it, tipping is supposed to be voluntary and not mandatory. We all need to do something to abolish this sick habit. In the USA, people are being played a lot by corporate America...$1 trillion for PPP, tips used to pay employees, etc. Another added.
Pho Ha Noi was first opened in the Vietnam Town shopping center in San Jose, California, back in 2016.
This compact restaurant chain also boasts a branch in Palo Alto. Moreover, they have intentions to inaugurate a new establishment in Milpitas later this year, and another one in Fremont by early 2024.
