M.P. asks from Houston, TX on February 01, 2012
I Really Would like Your Opinion.
First let me clarify that this question is coming from the point of view of business planning.
Birthday party places.... I know most people do tip the person that helped around or host but how would you feel if the place tells you that in addition to your total a 15% extra will be charged as tip/service.
Will you feel that you "most" tip if at the end your ticket (assuming you are paying with credit or debit card) states the correct amounts for say
10% tip
15% tip
18% tip
20% tip
I am just planning but I am really worried that my future employees get something extra than their stated salary.
I really appreciate you giving me you thoughs and opinion
THANK YOU
So What Happened?™
THANK YOU SO MUCH!
I really appreciate your opinions,
Answering a couple of questions: I do not want to control what the host receives or not.
I will not take any money from the tips, the tips are for the person that worked it. If the host gets a tip in cash I will be very happy, because I would not be involved, would not have tax repercusions and the host will be very happy.
*I do plan to pay a decent salary but since it is a start up business and there is way too many costs to list, at least at the beginning it will be decent but not to jump to the roof of happiness so, yes tips would help me keep the employee happy and motivated.
* I did not mean that it would be a charge not mentioned and kind of a surprise at the moment of paying, it would have been clearly stated before the party is reserved.
* It would not be both the 15% tip and then the ticket with the suggested amounts... was more than an idea of either one, not both and more than forcing the tip the amounts would sever more as a guidance of how much the percentage means in cash.
I do like the idea of just saying Tips are appreciated and I will hope that the people I choose to work at my place will really like their work and do an outstanding job so the customer is so happy and satisfied that they would tip effortlessly.
By they way tips or not tips I want to be a good boss so if my people do not get good tips I am sure I will find a way to incentivate them.
THANK YOU, THANK YOU, THANK YOU... Big eye opener!
Featured Answers
R.J. answers from Seattle on February 03, 2012
Honestly... I'd just include a "mandatory" tip as part of the upfront cost.
Party cost sans mandatory tip : $300
So instead of $300 + 10% tip you CHARGE $330.
It will save you headaches, arguments, and people saying they didn't "see" the required tip amount. And anyone who is happy and would tip anyway, will still tip!
<grin> Just scanning through the responses... you can see how many people get irked by mandatory tipping.
But no one notices if it's in the up front charge.
It's also a way to attract employees: They get 10% of the party fee of every party they host. Tips above and beyond that are just kudos.
1 mom found this helpful
T.K. answers from Dallas on February 01, 2012
If gratuity is included, I don't see any reason to tip above and beyond. I trust the business to put that gratuity directly into the employees hands.
1 mom found this helpful
More Answers
B.S. answers from Lansing on February 01, 2012
I don't think anyone likes being told they have to tip. However, I have worked for a place that did birthday events on a waitress salary and I hardly ever got tips. Most people don't think you need to tip the staff at birthday events but I don't think most people realize that some don't get paid a lot.
I think the better option would be to charge more for the party and just pay your employee accordingly.
4 moms found this helpful
J.B. answers from Boston on February 01, 2012
Interesting question. I have only done a few birthday parties at party places and I don't think I tipped. Call me crazy, but I assumed that because a place is charging $200+ for 90-120 minutes of party time that the staff is actually getting paid a decent wage. I did tip the lifeguards at an indoor pool and the party host at a pizza shop.
I don't know if I have any good advice - I think that for a place where hosting parties is your core business (not something that is done on the side at a restaurant or other place) you need to pay your employees well and not assume that they will be tipped.
3 moms found this helpful
R.A. answers from Wausau on February 01, 2012
I eat at a lot of places where the tip is added on to the bill. Usually dinner places it's 15%. If the tip is on the bill I usually just pay the set rate, but if it's not I tip 20%. That being said I worked at a private club where there was an automatic 20% added to all drinks food etc, and the customers would still give you cash from time to time.
There are a lot of people who justify not tipping becasue their bill was so high etc. to me I personally feel if you can have the money to go out for a dinner, etc. you should always budget in for a tip, to me not to leave a tip is extremly tacky.
You say "future employees" I would make sure that you get a good staff in from the get go. If you pay your employees more, the turn over will be less, thus saving you money on turn over costs. You could also do something if the birthday party is over 10 people that the gratuidy of 15% will be added onto the bill (Most resturants it's tables over 8 people)
3 moms found this helpful
J.W. answers from St. Louis on February 01, 2012
Here is the thing, from a tax standpoint you shouldn't concern yourself with the tips your employees receive. Most fudge this and it is best to know nothing about it.
They have a bounce U here which is an inflatable indoor park. I tip ten percent of the total bill. I figure part of the bill is the cost of the park and not their service so ten percent seems fair.
Still I would adopt a don't ask don't tell on how much they are getting in tips. It really is only between them and the IRS.
3 moms found this helpful
K.M. answers from Washington DC on February 01, 2012
I agree with most of the other responses, I don't think you should "force" people to tip and that's what you would be doing. See I also feel that tipping in general is getting out of hand. Yes, some jobs don't pay well, that is not the fault of the consumer and we should not be expected to bridge that gap. Sometimes it's just the persons job, why get more? If they can't survive they may need to find something new. I've never held a birthday party @ site, I always have them at home or a park, but I also never thought about tipping them. Maybe, if you are really concerned is to put a statement in your contract papers or info packet, something like " Tips are always welcomed but not required" That way people, like me, who never thought about it, would and may leave tips. Bottom line is that you can't mandate it and I think if you tried your business may suffer.
3 moms found this helpful
S.B. answers from Dallas on February 01, 2012
I must preface my opinion with the fact that we don't do "destination" birthday parties. But I have been to several. Personally, being "forced" to tip puts a bad taste in my mouth. And most of the moms I know don't tip at these facilities for a variety of reasons. Many of them are outrageously expensive to begin with and expecting more on top of that is just something many are not willing to do. And there are a few hosts that are really fabulous. But at many of these places the hosts do very little or they are so completely uninterested it's frustrating to watch. A simple reminder sign or something on the reciept that says "tips are appreciated" would be ok. It would be a reminder for those times your clients get exceptional and personal service.
3 moms found this helpful
T.B. answers from Washington DC on February 01, 2012
Here is my general rules for tipping - I tip very generously for impeccable service. If I have to wait forever for a table...that's not my waiter/waitress fault. If the kitchen messes up our food I do not hold that against the waiter/waitress as it is not their fault. The exception there is if you serve me a plate of food that looks so gross (raw or burnt to a chrisp) you yourself wouldn't eat it. Then why serve it to me????
I get annoyed with places that presume to tell me how much I am required to tip for service. Let me be the judge of the services and tip accordingly. This is a big pet peeve of mine. So much so that we do NOT frequent establishments with required tipping...at all...ever...period. Think of it this way, if the average teen worker knows that their going to get said tip regardless of the service they render...how much effort do you think their really going to put into doing their job? Let them learn the valuable career lesson that if you go the extra mile and give it your 110% you will be rewarded for your efforts accordingly.
I do realize that not everyone tips regardless of the level of service...some people just do not tip period. And some people may not know they are supposed to tip in a birthday party place. I think you'd be better served to include a note saying "hostess/host tips are appreciated" on your advertisement brochures/website whatever you are giving to your potential clients when they are considering booking an event with you. Also could post signs in the facility near the register as well.
Peace and Blessings,
T. B
3 moms found this helpful
L.B. answers from Austin on February 02, 2012
I personally am very turned off by mandatory tipping. I would probably choose somewhere else to have a party. When it comes to paying salaries, pay what you believe they are worth and if you encourage tipping leave a happy note to that effect on bills.
2 moms found this helpful
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