Surly Pizza

Right on yeah that makes more sense with the counter service but still I feel like they are just looking for a pat on the back for doing it. If you feel it’s the right thing to do just do it don’t brag about it. I do applaud them for paying what I assume is a decent wage though.

 

Fair enough but just raise the price 7% across the board pretty simple..... I still think it’s good they are doing right by their employees if they are actually paying a decent wage. It just annoys me I guess.... tells me they are doing it more for advertising than because it’s the right thing to do.

 

I think they have it on their menu because they want to avoid people constantly asking how to leave a tip.
Or perhaps because they want to avoid people leaving tips on tables then dealing with what to do with that left over money.

 

Paying decent wages... mandatory tip-pooling loophole... call it what you want, they're both the same side of the coin right?
www.startribune.com/tip-pools-at-surly-brewing-become-focus-of-court-case/435631773/

 

I've been tipping 25% for years, will remember not too per their instructions.

 

The advantage, to the employer, of a service fee over a tipping environment is that there's no requirement regarding what they do with the money. That is, they don't have to pay their employees more simply because it says service fee on the check. What's also true is that the fee can be used to raise the wages for employees in the front vs. back of the house. My only answer as to why they chose a fee over simply increasing prices is because increasing prices would mean the pizza looks more expensive (yes, I know that in the end it's the same).

One question. At Surly Pizza are they charging taxes on their service fee? Legally they're required to (tips aren't taxed, but service fees are).

 

They wouldn't be required to change tax just to pay tax. Perhaps, the reason why they say a portion of the service fee is going to the employees is because some of it goes to pay the tax.

 

Under federal law, there's no such requirement, but under Minnesota state law, there is, unless the employer conspicuously notifies the consumer in writing otherwise.

Income generated by service fees is subject to FICA taxes, and tips aren't, but I don't have a clear answer for the sales tax treatment of service fees. If service fees are treated as tips for sales tax purposes and thus not subject to sales taxes, there's a great practical reason right there not to bake the service fee into the price (beyond nominally lower advertised prices). If service fees are subject to sales taxes, that, like being subject to FICA taxes, is a disadvantage relative to tips, but, again, counter service traditionally isn't a service for which tips are expected (even though in recent years there has been a proliferation of tip jars to which a small percentage people generously or naively contribute). My guess is that 7% either roughly matches or, more likely, exceeds the mean tip rate for counter service.

 

Also didn't Surly have a lawsuit not too long ago that had to deal with their employees and tips/wages? Wonder if that has anything to do with it?

 

Just reported on today by the Strib: Surly settles $2.5 million class action lawsuit over mandatory tip-pooling

 

Ouch. Maybe the 7% is going towards attorney fees.

 

Unless the server, not the cook, is a total jerk. I usually tip 20%. I'm not against servers making more money. My fear is bad service. But I get the argument that even if you give good service. People will stiff you to save a buck. I'm 51 years old. I've taught my sons to tip appropriately. I know my friends and family are asses when it comes to servers. But I fear the future for waiters and waitresses.

 

So how's the pizza?? Anyone???

 

Awesome. Was there Friday for the opening, and had three different pizzas. All really good. We were probably #25 or so at 4:00, so we got service pretty fast. Not sure after that, since the line got pretty long.

 

what does that even mean?

 

I still don't understand, they own both restaurants, they can make prices whatever they please at either place. I guess I'd just prefer a little more honesty, perhaps call it a staff wage subsidy, i.e. we pay 7% less than the market rate, therefore you can pick up the difference with your pizza and beer.