Tipping etiquette and Jamaica.

[Rob]

Blake,

Since you do want to learn as much as you can about business in Jamaica, there is a good article written by a tax attorney in the Observer and published about a year ago - here is the link:

http://www.jamaicaobserver.com/busin...erence_9461924

A couple key points are 1) yes, it is somewhat redundant for a restaurant to charge the service fee when they could have simply raised the menu prices by the same factor and 2) it is NOT a tip, it is a service charge, not a "good service charge". You pay it just the same way as if the item cost that much more.

There is no "double dipping" - the restaurant is liable to pay the same taxes on the service charge as they do on the food costs, as it is simply an addition to the food cost. There are no taxes paid by the restaurant on any tip you would leave, that is a different thing all together - a tip is not "paying the staff" but a personal reward that you give the server for their prompt service.

So your "food equation" should actually read "food + service charge (which includes overhead/salaries and paying the staff) + a Tip (rewarding your server for good service).

[Blake]

There is no "double dipping" - the restaurant is liable to pay the same taxes on the service charge as they do on the food costs, as it is simply an addition to the food cost. There are no taxes paid by the restaurant on any tip you would leave, that is a different thing all together - a tip is not "paying the staff" but a personal reward that you give the server for their prompt service.

So your "food equation" should actually read "food + service charge (which includes overhead/salaries and paying the staff) + a Tip (rewarding your server for good service).

Thanks

Per your article I would argue that they are in fact double dipping.

Thus, a service charge applied at a restaurant is somewhat redundant as the restaurant business is a service industry, just like a law business. Imagine your lawyer sending you a bill for legal fees and then adding a 10 per cent service charge.

My biggest issue is where the service charge actually goes and why it exists, not that it benefits the people of Jamaica.

1. If it goes towards the employees, then logic dictates the food prices would reflect that, yet Jamaican restaurants seem to be on par with US restaurants.

2. If it doesn't go towards the employees(which some employees claim, see one of Rob's first posts) then where does it go?

3. If the food prices don't reflect the employees pay(excluding servers, I'm not debating the merits of gratuity), then what DO they reflect?

This has nothing to do with how poor the country is or the desire for us to support the Jamaican people, enforced capitalism isn't a free market, the restaurants should pay their employees better and price their food accordingly.

I support the people of Jamaica when I visit either directly(gratuity) or indirectly,but this makes me wonder if the restaurants are supporting Jamaicans.

Let me try to make it clear that while I'm opposed to the tipping system(in that it does NOT increase the quality of service), I understand why the tipping system is set up. I can't fathom the service charge as being anything other than a double dip if the food costs are meant to reflect employee pay(excluding servers).

At what point is it excessive? I believe in transparent pricing and not a low ball on the food and then a bunch of extra service charges.

I'd also like to point out that the GCT is applied TO the service charge, which means you're not just paying an extra 10%, you're paying 10% extra+GCT even though the food prices are not lowered to reflect that.

I do believe that they should change the name from service charge to service tax to avoid confusion about whether or not it's considered gratuity.

At the end of the day I'm far from cheap, but I am frugal and like to know where my money is going and why it's being taken the way it is.