Went to book a reservation at my favorite restaurant in the Cities—Broders’—and was informed all customers were being charged a 15% “equity” charge.— Jon Miltimore (@miltimore79) June 22, 2021
Instead of just paying their employees more, Broders has decided to inform customers they are too racist/sexist to tip properly. pic.twitter.com/LeiC2RcPEm
Broders’ justifies its “equity” charge by saying many “states have allowed reduced minimum wages for service staff in the form of a tip credit.”— Jon Miltimore (@miltimore79) June 22, 2021
True. But guess what? Minnesota is not one of those states.
So apparently, Broders’ has no problem deceiving its customers. pic.twitter.com/wIH2UFBOY7
The libertarians have flagged something important for once.
“She was right.
On its website, Broders’ has a notice to customers notifying them of a new 15 percent “benefits and equity” charge they’ve instituted. They justify the charge, first, by explaining that “many states have allowed reduced minimum wages for service staff in the form of a tip credit.” (More on this in a minute.)
The restaurant’s second justification is that many tippers are racist and sexist, according to uncited research.
“Studies have also shown that there is inequity and built-in bias in the way consumers give tips,” the statement reads. “In general, Black or Brown servers receive less tips than Caucasian servers. There is gender bias as well.”
The final part of the statement says the new policy stems from wider racial injustice and is not a substitute for gratuity.
“In the wake of racial injustice protests and the closures due to COVID, now is the time for Broders’ to reimagine its economics and provide fair pay across the company,” the statement reads. “Our Benefits & Equity Charge is applied entirely to employee compensation. This supplement helps us to set a $16 minimum hourly wage for customer-facing employees, $18 minimum hourly wage for kitchen employees… Altogether this allows everyone in our company to earn a real living wage. The 15% Benefits & Equity Charge is not a gratuity.” …”
I wonder how widespread this has become.
In my experience, working class and middle class Whites are the best tippers and blacks are the worst tippers. I would love to see the evidence that racist Whites are discriminating against black workers. Even in our circles, I have never seen any reason to believe this is true.
Note: Pretty White girls do get better tips though.