this post was submitted on 12 Nov 2023
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Mildly Infuriating
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For sure, clothing companies can do this, but I don't think most businesses can.
The restaurant industry just seems doomed if they have to rely on service fees and inflated prices on top of tips.
And those added fees and tips keep people away, so the business model itself seems flawed and self-destructive.
Grocery stores, home improvement stores, convenience stores, auto parts stores, gardening stores, bike shops, and pretty much every single business pays half or less for the vast majority of the products compared to the price on the shelves.
Average retail markup is usually under 35%.
Yes, there are exceptions, but restaurants are routinely marking up ingredients by hundreds of percent more than even retail grocery stores. And they pay their employees less.
Even if another industry marks up more than 35%, very few ask for tips on top of that. These guys asked for a tip and charged an 18% service fee, which is ludicrous.