We came here for a business lunch with a group of people during restaurant week. The food was great, and the service was fine, but really it was the situation at the time of paying our bill that left a very bad taste in our mouths.
First let's go over IRS regulations that have not changed for decades but are being enforced with renewed vigor starting last year: January 2014.
The IRS (as of January 2014) defines a tip or gratuity as:
* The payment must be made free from compulsion
* The customer must have the unrestricted right to determine the amount
* The payment should not be the subject of negotiation or dictated by employer policy
* Generally, the customer has the right to determine who receives the payment
Anything that is compulsory must be labeled a "service charge" have taxes paid on it, but it is not gratuity. Granted, many menus especially outside of large, metropolitan areas still say "a 20% gratuity will be assessed for parties of N or more," but generally I assume they are outdated since they are, in fact, illegal and punishable by law.
It did say this on our menus, but when the waitress brought out our bill at the end of the meal, it had "suggested tip" amounts of 15%, 18%, and 20%. We settled the bill among our table and one person put down a credit card for the whole table.
The waitress brings back the bill, and she says "just FYI the tip is included." So what happened was that she had made a mistake by printing us a bill with "suggested" gratuity amounts and was supposed to charge us a service fee based on the number of our party. She realized this after she took my credit card and then SWIPED MY CARD FOR A COMPLETELY DIFFERENT AMOUNT from the bill. This is unbelievable.
I pointed this out to her and she said "oh sorry that was my mistake" several times but each time just stared blankly at me, not expecting to do anything to rectify the situation. Finally, she said "I can void this charge if you want and charge your card the previous bill." We thought this was a great idea and gave her back the bill.
As we are waiting, we discuss at our table how she had been a nice and honest server and that we would still tip her 20% gratuity. Suddenly, the owner of the restaurant comes to our table, literally YELLING AND SCREAMING at us. These exchanges include:
"CAN YOU EVEN READ??? IT SAYS 20% GRATUITY WILL BE INCLUDED FOR PARTIES OF 6 OR MORE!!!!!"
-- "Yes, but automatic gratuity is illegal, it must be a service charge for you to include it."
"WE FULLY UNDERSTAND WHAT THE LAWS ARE, AND THIS IS AN AUTOMATIC SERVICE CHARGE THAT WE HAVE TO PAY TAXES ON!!!!"
-- "Yes, but the menu says 'gratuity' which is not the same thing as a 'service charge.' If you charge a service charge, you must be upfront about that, especially if you send us a bill excluding the service charge and included 'SUGGESTED TIP' amounts."
"OH, SO YOU ARE GOING TO PENALIZE HER FOR THIS????"
-- "No, we just asked her to bring us the correct credit card receipt for the original bill she brought us. It is also illegal to swipe a credit card for an amount different from the bill."
"SO YOU'RE SAYING THAT EVERY RESTAURANT IN NEW HAVEN IS OPERATING ILLEGALLY????"
-- "If they do not distinguish between a mandatory service charge and non-compulsory gratuity, then yes, they are not compliant with IRS law."
Finally she relented, and we were able to pay and go back to work, but the bottom line is, we received relatively good food and service, but we neither expected nor deserved to be YELLED AND SCREAMED at when we asked for the correct bill.
Olea, we are disappointed in your behavior, so we gift you the disappointed dad face. read more