TIPS The economist in me says: from the server’s perspective it’s opportunity co

TIPS
The economist in me says: from the server’s perspective it’s opportunity cost. It’s far, far harder to take orders from, for the kitchen to cook and time, and for the staff to serve, many people on a $1k bill with a high chance of low tip, versus ten groups of two or four people with $100 bills and distribute the risk of all that error, low customer satisfaction, and low tip. So why would anyone want to serve a group that generated $1k? For this reason, many restaurants, especially the best ones, simply add the server’s cost to the bill regardless of what you want. Otherwise no one would wait on you.
From the management’s perspective and from the staff’s a higher minimum wage puts employment at risk, and the business at risk, because the industry is volatile. This volatility rewards people during prosperity and protects them from bankruptcy in downturns.
You pay either way. You’re going to pay for that server, the kitchen, the food, the facilities, the rent, the power, the cleaning crew, the spoilage, the insurance, and the taxes, one way or another.

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