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Do food delivery persons prefer cash tip?
(lemmy.world)
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this post was submitted on 24 Nov 2023
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Unfortunately I think the reality is that as long as people are tipping well, there is little motivation on any party (except the customer) to rework compensation in the food service industry.
As a customer, I hate the situation. The explosion in tipping (both expected amount and breadth of jobs relying on tips) I've seen in my couple decades as an adult is staggering. But I still want my server to be paid decently, and therefore I tip decently. But it leaves a bad taste in my mouth every time, knowing that the establishment is relying on my guilt to pick up the slack in their compensation.
The people who actually have the power to change this are the companies, as businesses in the US at least have a disproportionate buying power of democracy. Unless what you do hurts a business' bottom line, it won't rework any system. You either have to adjust the politics so that businesses have less sway, or you just end up making sure someone who's already not getting paid enough gets paid even less. The company has no incentive to pay them more. A living wage has to be legislated
The path to change through customers decreasing their tips would be:
Workers who rely on tips for income make a lot less money, many of them suffer. There is no impact on the companies.
Workers who can, move to different industries. There is less competition for these roles, and they are filled with less skilled and/or more desperate workers. Companies employ more draconian tactics to compel performance, which the more desperate workers will tolerate.
Eventually the quality of service will deteriorate to an extent that customers will start to notice. Most customers won't really care. Companies will raise prices to compensate for the few customers who leave.
Given the money saved by not tipping, customers won't mind the higher prices. Companies will tout their record profits on earnings calls with shareholders.
Eventually some kind of legal or political action will be mounted to challenge the minimum wage exception, now that "tipped employees" don't make minimum wage when counting their tips any more. Most people don't feel like they're affected and don't care. Companies lobby the government to ensure it is not successful, or if it is, to ensure that it is toothless and won't impact their earnings.
Companies raise prices more with the excuse of the recent actions. Customers are now paying more than they used to when including tips. Workers are poor and abused. Shareholders think these companies are winners and invest more.
Problem solved?