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BenjiWiebe • today at 5:52 AM • 1 reply • view on HN

A good chunk of lower class labor isn't tipped.

I don't actually even have DoorDash available, but I can put my money where my mouth is when it comes to restaurants; PLEASE pay your workers a good wage, and then I won't eat there if I can't afford it. I don't know what your wages are, or your operating costs; don't make me guess how much I need to pay your employees for you!


Replies

komali2 • today at 10:41 AM

Nobody actually likes tipping btw, the question isn't whether it's good, but rather whether we should as individuals punish individual workers for our own failure to not raise minimum wage or ban tipping.

Regarding the restaurant industry, I used to run a restaurant, and my conclusion is that the economy is fake.

There is no profitable way to run a restaurant legally. Somewhere in the supply chain, if not in the restaurant then in the delivery truck or farm, there are undocumented laborers being underpaid and working in unsafe conditions. If we actually applied the typical worker protections we've come to expect for other blue collar jobs, with the expected wages, the already razor thin margins of the restaurant industry would completely collapse. The only thing left would be vertically integrated oligopolies like McDonald's.

Every meal out, somebody, somewhere, is subsidizing your meal to make it affordable enough for you to buy it. Adding the 28-32% margin that Uber eats charges is just increasing that pressure to the breaking point. It all barely survives through psychological tricks that make it seem cheaper than it is like hiding the tip or tax until after you actually get the full bill.

I think the only way the restaurant industry could function fully legally is if the government was the only landlord. There's just not enough margin to include the margins a landlord expects, and landlords pathologically increase rent to be just below causing a restaurant to collapse, or simply cycle through restaurant after restaurant, not caring about months of lost rent revenue because the high rent cost increases the value of the property.