DDE Automatic 18% tip!

[CanadianGuy]

Since there still seems to be some confusion. I'm reposting this again.

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ALL INDICATIONS COMING FROM DISNEY .. IS THAT THIS IS THE CORRECT POLICY

The information I'm getting from my Food & Beverage contacts has stressed this is FOR DDE CUSTOMERS AT TABLE SERVICE LOCATIONS AND PARTIES OF 6 OR MORE AT TABLESERVICE LOCATIONS.

This is for DDE customers and parties of six of more... ONLY

And does not affect DDP or credit/cash customers with no discount.

At this time, the information I am getting personally from my contacts says this does NOT affect DDE customers at counter service locations.

Knox

 

[apostolic4life]

At most restaurants, the check is itemized... and the pre-tax total (usually listed as "subtotal") is its own line item. You just have to notice it's there.

Sadly, it's all too easy to calculate an 18% tip where I live... you just double the tax. (Even sadder: doubling the tax actually puts you a little above 18%!) Yes, the salex tax rate where I live is above 9%.

David

We are six percent so we would have to do x3.......I like simple math when figuring a tip: figure 10% x 2 = Normal tip. If the service really good we break out the calculus and give them a great tip.

 

[apostolic4life]

Since there still seems to be some confusion. I'm reposting this again.

----
ALL INDICATIONS COMING FROM DISNEY .. IS THAT THIS IS THE CORRECT POLICY

The information I'm getting from my Food & Beverage contacts has stressed this is FOR DDE CUSTOMERS AT TABLE SERVICE LOCATIONS AND PARTIES OF 6 OR MORE AT TABLESERVICE LOCATIONS.

This is for DDE customers and parties of six of more... ONLY

And does not affect DDP or credit/cash customers with no discount.

At this time, the information I am getting personally from my contacts says this does NOT affect DDE customers at counter service locations.

Knox

You have been perfectly clear and very patient!!!Thanks for the replay..........If some still don't get it maybe we can line'em up and brand it into their foreheads!!!!

Does that sound harsh????

 

[CoPirate]

Be careful, you are beginning to sound like a nut.......measly 18%, what is wrong with you. If 18% is now considered a measly tip we are in real trouble. Just out of curiosity, how big does the tip need to be and what exactly should the guest expect from you for it??? There is a huge group of people entering the work force over the last few years who feel everyone owes them something for nothing in return. Has the idea of work hard for a fair days wage gone by the wayside??? Go ahead and unionize, because when you go out on strike (and are earning nothing) I will still have a staff of happy loyal employees working for me (and earning money), who understand the basic concept of the customer service industry: Serve the customer's (internal & external) needs first, treat my customers (internal & external) with respect, and have an "attitude of gratitude"!!!! Pretty simple really.

My rant is now over!

I meant a measly 18%, as in $10 as opposed to $5. Or whatever. What always confused me is when people would give you like $9.00. or 4 dollars. 1 more dollar? please? Im not worth just 1 more to keep things easy?


look, i dont mean to come off as some griping server who just expects 20% no matter what. When I was serving I did it because I enjoyed the fast paced environment. I liked the easy money, and never paid too much attention to how much I was making as a whole, just as a personal sociology experiment on the people of Orlando and then St. Petersburg. I found that as a majority people are cheap. So I busted my butt to try to show people that good service was possible, but it just rarely made a difference. I ended up quitting because they were keeping me till 2am scrubbing a drain with a toothbrush when I had to be at my day job at 8 the next morning. - Not cool.

Im glad you own a restaurant, have it all figured out and are king of the world. Your servers are making money and are happy. great. You're a small percentage of the entire restaurant industry tho. And many servers have come to my defense on here. So I guess agree to disagree.

 

[krissylynne]

If at the end of your meal you are not satisfied with your service, call for a manager. You can tell them what your problems were, they can correct it, and your automatic gratuity will be taken off. It is capable of being taken off. We just need to ask for it if it is not deserved. I have heard this from many managers and from the DDE people. We are under no obligation to have to pay for what we did not receive.

I am not trying to be weird, but if EVERY one of us asked for a manager and discussed our issues with them and why we do not like it, the mangers will then talk to everyone else and let them know that thousands of people are not happy. There are a group of us that will be doing this at least 10 times in December. One talk with a manager for each restaurant. Join in the fun!

WE CAN CHANGE THIS! Disney knows it, but enough people need to say something.

 

[krissylynne]

If at the end of your meal you are not satisfied with your service, call for a manager. You can tell them what your problems were, they can correct it, and your automatic gratuity will be taken off. It is capable of being taken off. We just need to ask for it if it is not deserved. I have heard this from many managers and from the DDE people. We are under no obligation to have to pay for what we did not receive.

I am not trying to be weird, but if EVERY one of us asked for a manager and discussed our issues with them and why we do not like it, the mangers will then talk to everyone else and let them know that thousands of people are not happy. There are a group of us that will be doing this at least 10 times in December. One talk with a manager for each restaurant. Join in the fun!


WE CAN CHANGE THIS! Disney knows it, but enough people need to say something.

Also on the flip side when we have excellent service do the same thing. Talk to a manager and explain to them that you wanted to give more but this set percentage is aggervating. Yes we can just give out more money, but it is the point. There are many great servers in disney, and they do deserve the extra. I plan on using my voice to those at the restaurants.

 

[apostolic4life]

I meant a measly 18%, as in $10 as opposed to $5. Or whatever. What always confused me is when people would give you like $9.00. or 4 dollars. 1 more dollar? please? Im not worth just 1 more to keep things easy?


look, i dont mean to come off as some griping server who just expects 20% no matter what. When I was serving I did it because I enjoyed the fast paced environment. I liked the easy money, and never paid too much attention to how much I was making as a whole, just as a personal sociology experiment on the people of Orlando and then St. Petersburg. I found that as a majority people are cheap. So I busted my butt to try to show people that good service was possible, but it just rarely made a difference. I ended up quitting because they were keeping me till 2am scrubbing a drain with a toothbrush when I had to be at my day job at 8 the next morning. - Not cool.

Im glad you own a restaurant, have it all figured out and are king of the world. Your servers are making money and are happy. great. You're a small percentage of the entire restaurant industry tho. And many servers have come to my defense on here. So I guess agree to disagree.

No, I do not have it all figured out and I am not king of the world, but I have worked hard in the restaurant industry to become successful. I do not come into this with a singular experience; I have worked my way through the industry to get to a point where I look objectively at these things and base my arguments on a broad experience not a narrow "sociology experiment". My money would be wagered on the fact if you had a broader experience in the industry you could see the concept I am offering a little clearer. As you said, you saw the job as "easy money", and I hate to say it, so do most other servers. If you hold them accountable for a certain level of service and expect them to do more than wait on customers they think they are so underpaid and abused (now the thing with the drain was just rude and demeaning and should not have happened, I specifically hire people to do those things). I would agree most servers would come to your defense on this issue because it would be to their benefit to get that guaranteed 18% tip even if they give sub-par service, right?!?!?! I do not think agreeing to disagree is how I would bookend a viewpoint I felt so strongly about.

 

[apostolic4life]

Also on the flip side when we have excellent service do the same thing. Talk to a manager and explain to them that you wanted to give more but this set percentage is aggervating. Yes we can just give out more money, but it is the point. There are many great servers in disney, and they do deserve the extra. I plan on using my voice to those at the restaurants.

Well said on both your point/posts krissylynne, but like I said earlier we have had an issue in the past getting a manager to our table to answer for poor service. I bet if everyone you predict follows your lead the managers will not have enough time in the day to answer every table (for good or bad reasons).

 

[CoPirate]

No, I do not have it all figured out and I am not king of the world, but I have worked hard in the restaurant industry to become successful. I do not come into this with a singular experience; I have worked my way through the industry to get to a point where I look objectively at these things and base my arguments on a broad experience not a narrow "sociology experiment". My money would be wagered on the fact if you had a broader experience in the industry you could see the concept I am offering a little clearer. As you said, you saw the job as "easy money", and I hate to say it, so do most other servers. If you hold them accountable for a certain level of service and expect them to do more than wait on customers they think they are so underpaid and abused (now the thing with the drain was just rude and demeaning and should not have happened, I specifically hire people to do those things). I would agree most servers would come to your defense on this issue because it would be to their benefit to get that guaranteed 18% tip even if they give sub-par service, right?!?!?! I do not think agreeing to disagree is how I would bookend a viewpoint I felt so strongly about.

I really respect your integrity. And the 'know it all and king of the world' comments were jokes. Much like me being a nut.

I agree. And If I went to work for... idk Burns Steakhouse (tampa steakhouse) or The Columbia (tampa, st pete staple) I might take the job a bit more seriously. But in tampa/st pete and central florida. Serving is the 'easy way' to make good money. Which is why there are so many bad servers. I personally had many people that specifically asked for me, even at a chain restaurant like chilis. Their turnover rate here locally and at WDW is very high. There is not much 'easy' about doing the job right, and with managers who force you to scrub drains at 2am, there just isnt as much insentive as there would be in a restuarant where the managers care about you and not their impending bonus.

Disney isnt like your vision though. And no I havent worked in the restaurants personally, but I know plenty of people who do. And the things I have mentioned in my posts were not from my own mouth, but theres. SHOULD the restaurants be run like your saying? YES PLEASE FOR THE LOVE OF GOD. Will they be? No, its easier to keep it how it is, and roll out changes like the one we're seeing.

The only way to change it is to consistantly talk to management and let them know you think its crappy.

and i said agree to disagree, because short of you hiring me at your restaurant, im not sure what else you could do online to show me. I believe you, and think you're right. But also have the reality of the Disney company and resort in mind, thats all.

 

[apostolic4life]

I really respect your integrity. And the 'know it all and king of the world' comments were jokes. Much like me being a nut.

I agree. And If I went to work for... idk Burns Steakhouse (tampa steakhouse) or The Columbia (tampa, st pete staple) I might take the job a bit more seriously. But in tampa/st pete and central florida. Serving is the 'easy way' to make good money. Which is why there are so many bad servers. I personally had many people that specifically asked for me, even at a chain restaurant like chilis. Their turnover rate here locally and at WDW is very high. There is not much 'easy' about doing the job right, and with managers who force you to scrub drains at 2am, there just isnt as much insentive as there would be in a restuarant where the managers care about you and not their impending bonus.

Disney isnt like your vision though. And no I havent worked in the restaurants personally, but I know plenty of people who do. And the things I have mentioned in my posts were not from my own mouth, but theres. SHOULD the restaurants be run like your saying? YES PLEASE FOR THE LOVE OF GOD. Will they be? No, its easier to keep it how it is, and roll out changes like the one we're seeing.

The only way to change it is to consistantly talk to management and let them know you think its crappy.

and i said agree to disagree, because short of you hiring me at your restaurant, im not sure what else you could do online to show me. I believe you, and think you're right. But also have the reality of the Disney company and resort in mind, thats all.

Thank you, I work hard to make my people happy in their chosen career path and encourage them to work towards a goal. I want them to know there is something better for them and I even encourage those will natural skill and ability in certain areas to reach for more. When my employees feel good about themselves the payoff for me is dedication and loyalty. I expect my employees to work hard and they do it......they see the rewards when the tips come in. No, not everyone tips they way you hope they do, but in the end a good wage is still maintained.

I guess I am sold out to my philosophy of restaurant operations and until I write my book and make millions of dollars will have to express it here on the DIS!

 

[TLSnell1981]

We usually leave $1 per drink as well. If you left 25 cents as a tip at a bar in Atlanta, you'd probably not be waited on again any time soon.

I believe this to be true everywhere!

 

[dqpowell]

I believe this to be true everywhere!

As I pointed out in a subsequent post, I don't have a 25 cent per drink policy. But there are situations in which I only tip a quarter, and have never had any problem being served, including in Atlanta.

Maybe those of you who overtip should come out for a few drinks with me sometime and you'll be shocked and amazed when we get served despite my "small" tips.

David

 

[jberry5]

Here's information from the Department of Labor http://www.dol.gov/elaws/faq/esa/flsa/002.htm

So, you see, yes it IS the law.

Tipping is not the law. Employees being paid at least minimum wage is the law, and that is what is being addressed by the above site on the dol website.

A tipped employee must report their tips to their employer. If their hourly rate, plus tips per hour do not meet or exceed the current minimum wage of that state, then the employer must pay additional wages to this employee. Generally, restaurants are allowed to pay servers sub-minimum wage, because wages from tips are expected, not because they are required.

Here's an example of how this works in Michigan, where tipped servers can currently be paid $2.65 per hour, while the minimum wage is $7.15 per hour. The expected tips per hour works out to $4.50. So let's assume this server works 10 hours during the week, and receives $40 in tips. As that calculates to $4.00 per hour in tips, the employer, not the costumers, is required to pay an additional $0.50 per hour to this employee, so that the employee's pay comes out to minimum wage. As for overtime, the server is paid at a rate of 1.5 times minimum wage. So the server is compensated $6.225 per hour by the employer, and tips are expected to be $4.50 for an hourly rate of $10.725 which is $7.15 @ 1.5 times. It wouldn't surprise me in the least if overtime is not always paid correctly, as some assume they'd pay 1.5 times the $2.65 rate, but tips can not be expected to earned at a rate of 1.5 times, simply because a server is working overtime.

 

[jberry5]

Quote:
Originally Posted by Paging Tom Morrow
I wonder how people would react if Disney were to announce that all prices at TS restaurants would be increasing by 18%; however the practice of tipping in restaurants would no longer be allowed.

Price increases would have to be WAY more than 18%, to coverincome taxes, social security contributions from both the employee and employer, etc... you'd be looking at something more in the range of 33% - 40%

Not sure I follow this thought. If what is being said is prices will rise by 18% in order to increase servers' pay, instead of servers relying on tips, it will basically come out as a wash. Now you'd have a much larger payroll expense, which in theory is going to offset the increased revenue. Wages, whether paid directly by the employer, or through tips are subject to payroll taxes by both the server, and the employer. This is why many servers never actually receive a paycheck from their employers, all of the company paid wages are being withheld for income and social security taxes.

Now if what was being said was a policy to help the company's bottom line, the answer is different. The highest marginal bracket for a corporation is currently 39%. So even if only 5% of the 18% increase is going to go for increased server wages, that means 13% is going to effect the bottom line, and income taxes will increase approximately 5% based on that increase. Of course other expenses, such as insurances will be affected slightly, but overall you'd be looking at 23 or 24% increases (those expense increases will decrease the taxable income), assuming this policy change was to better the company's bottom line, and not just to increase server wages. This example is assuming that 39% marginal bracket, which is not what a company like Disney is paying. Corporate brackets fluctuate, increasing up to that 39%, and then decreasing so that the highest effective rate a corporation is ever going to pay is 35%.

 

[apostolic4life]

Quote:
Originally Posted by Paging Tom Morrow
I wonder how people would react if Disney were to announce that all prices at TS restaurants would be increasing by 18%; however the practice of tipping in restaurants would no longer be allowed.




Not sure I follow this thought. If what is being said is prices will rise by 18% in order to increase servers' pay, instead of servers relying on tips, it will basically come out as a wash. Now you'd have a much larger payroll expense, which in theory is going to offset the increased revenue. Wages, whether paid directly by the employer, or through tips are subject to payroll taxes by both the server, and the employer. This is why many servers never actually receive a paycheck from their employers, all of the company paid wages are being withheld for income and social security taxes.

Now if what was being said was a policy to help the company's bottom line, the answer is different. The highest marginal bracket for a corporation is currently 39%. So even if only 5% of the 18% increase is going to go for increased server wages, that means 13% is going to effect the bottom line, and income taxes will increase approximately 5% based on that increase. Of course other expenses, such as insurances will be affected slightly, but overall you'd be looking at 23 or 24% increases (those expense increases will decrease the taxable income), assuming this policy change was to better the company's bottom line, and not just to increase server wages. This example is assuming that 39% marginal bracket, which is not what a company like Disney is paying. Corporate brackets fluctuate, increasing up to that 39%, and then decreasing so that the highest effective rate a corporation is ever going to pay is 35%.

Let me guess...........a CPA??????

 

[TLSnell1981]

As I pointed out in a subsequent post, I don't have a 25 cent per drink policy. But there are situations in which I only tip a quarter, and have never had any problem being served, including in Atlanta.

Maybe those of you who overtip should come out for a few drinks with me sometime and you'll be shocked and amazed when we get served despite my "small" tips.

David

I used to own a bar....that why I tip the way I do. I average way more than a $1 a drink. I've known many servers that would give a heavy tipper more attention than a...light one.

I usually tip bigger to some poor guy/gal that's having a slow night....it makes my day and theirs.

 

[mom2my3kids]

We used to have a girl work with us part time, she was a full time bartender at a local bar she made at least 200.00 a night but then again she was young and very pretty so that may of helped her out. The place I work is open 24 hours a day and those midnight ladies, wow they put up with a lot of drunks. I told them I think I would be crying in the back with some of the stuff they put up with..

 

[kaytieeldr]

Tipping is not the law. Employees being paid at least minimum wage is the law,

I agree. I was responding to a specific post/poster who said Disney should pay their servers the actual minimum wage, like California law mandates, instead of the $2.13 or so REQUIRED by Federal Law for tipped positions where the tips total at least $30 a week...

Not sure I follow this thought. If what is being said is prices will rise by 18% in order to increase servers' pay, instead of servers relying on tips, it will basically come out as a wash.

When the employee's pay increases, the payroll taxes that are solely the responsibility of the employer also increase. So if you increase the price of the steak 18% and pass that on to the server, the employer pays its share of social security, and FUTA, and likely other taxes, on the increased earnings. So now the 18% increase may actually be 25%.

 

[CanadianGuy]

We're way off the beaten path here folks. The Topic is how this change to the DDE program .. affects customers.

Knox

 

[jberry5]

Let me guess...........a CPA??????

How did you guess? Was it the boring overtones of my typing? Or could you see me typing with my green eye shade? The buffness of my thumb and index finger from my pencil pushing?