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Went to a restaurant in LA today and when I got the check I noticed that it was a bit higher than it should be. Then I noticed this 18% service charge. So... We, as customers, need to help pay for their servers instead of the owners paying their servers a living wage. And on top of that they have suggested tip. I called bs on this. I will bet you that the servers do not see a dime of this 18% service charge. [deleted a word so it wasn't a grammatical horror to read]
That’s a good question, and the easy answer is ‘they should.’ As the commenter above you mentioned, they use it as a tactic to advertise the same (competitive to other local restaurants) price people are used to. A more transparent way of doing business would be raising the price of the menu items to compensate staff fairly. The restaurant owners/management fear that if they do this it would drive away customers who believe the food is overpriced and look to their competitors. It’s easy to say, ‘just pay the staff a fair wage,’ but not quite as easy in practice. Most restaurants are small businesses just barely scraping by. The OP is right to be annoyed, but as always, context and a basic understanding of a situation’s underlying principles make the easy answer difficult to implement.
Put a banner outside saying "no gratuity necessary, the price you see is the price you pay!" and watch what happens.
I worked in restaurants for years and this is the correct answer. I also die a little inside at how many posts say to pay servers a living wage but then balk at the idea of paying extra for the meal. Where else would the money come from??! As you said, if they raise menu prices, their competition will undercut and do this. It would also affect takeout prices where tips are usually lower. People hate tipping and want a magic solution where waiters make more but also nobody’s charged more.