this post was submitted on 14 Feb 2024
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Every time we go to Toronto we go to the same restaurant because they don't accept tips, they just pay their staff really well. Fantastic restaurant and I love supporting them.
That's how it should be. Tips supplement incomes so restaurant owners can pocket the profits that would have gone to paying their staff better. If all restaurants moved to this model, everyone would be a lot happier.
I hate to defend small restaurant owners because so many of them are complete assholes but they are not exactly Scrooge McDucks dealing with Elon Musk levels of money. Elon Musk could cover the tips of everyone in America.
I was going to say, most of what restaurant owners do is go broke. It's a brutal industry.
Most restaurants are chains and owned by a small handful of corporations and mega-franchisees. Their shareholders make a lot of money.
Most small businesses (restaurants or otherwise) go broke because they are undercapitalized or otherwise mismanaged.
It takes money to make money.
And If you want to make the jump from wage earner to small business owner, making higher wages helps a lot.
Higher wages means the next generation of small businesses are more successful. More successful small businesses create more competition and keep prices lower for consumers.