Good Question: With added service charges, when should customers tip at restaurants?
MINNEAPOLIS — Going out to eat is getting a bit awkward in the Twin Cities. A growing number of restaurants are adding additional charges to bills, making it hard to determine when and when not to tip.
Traditionally, diners write in a tip of around 15-20%. But what used to be a cut and dry process is getting complicated.
WCCO looked at receipts from a list of restaurants. Instead of just gratuity, they each had other charges listed — all different amounts and all different labels — like a service charge, service fee, heath and wellness charge, hospitality charge and surcharge.
"People are confused, and they have every right to be," said Jesse Held, co-owner of Earl Giles Restaurant and Distillery in Northeast Minneapolis.
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His restaurant has a 5% labeled fee to help cover employee healthcare which doesn't include tip, but says every place is different.
He says the core issue is minimum wage: it's gone up 22% over the past 5 years in Minneapolis and St. Paul. Held says charging more is not a solid option.
"I think putting a big number on a menu item is for the consumer may go the other way," he said.
He says despite the different wording, restaurants are all trying to give workers a living wage. As for when to tip, he says if it's 15-20% added fee, assume tip is included, if it's lower, like 5% - assume you still need to fully tip.
And even though it can be awkward he says there's one solid way to settle up.
"If you have questions about it, don't be afraid to ask," he said.
As Held explained, restaurants are experimenting with different formats now, but he says with rising food costs and labor costs its unlikely all restaurants in Minnesota will return to the classic "write your own gratuity" method.
