Jared Forman, owner of Deadhorse Hill Restaurant in Worcester, said the bill is adding more complications by only allowing restaurants to charge a service fee during peak seasons
As the holiday season approaches, restaurants expect to see large crowds celebrating with friends and family. But servers facing heavier workloads during the busiest days of a year may actually get fewer tips, according to a Massachusetts lawmaker proposing legislation to address the issue.
A bill offered by Rep. Manny Cruz, D-Salem would allow restaurants to charge parties with more than four a minimum service charge of no less than 19% during peak restaurant seasons that a municipality would define.
Servers often worry if diners will leave tips during October, the peak season in Salem where about 1.5 million tourists visit the town for Halloween activities, packing restaurants, according to Cruz.
“[The servers] are working incredibly hard, and the folks wouldn’t leave tips. And I’ve heard these stories countless times,” he said.
The bill makes the minimum gratuity optional for restaurants, Cruz emphasized. Municipalities determine their peak seasons, and restaurants decide whether it is the right fit for them.
But having different rules in each municipality causes confusion, said Jen Ziskin, director of Mass Restaurants United.
“We are in the business of creating great experiences for our guests and for our communities,” she said, worrying that the proposed gratuity will affect diners’ experience as peak seasons start and end at different times in each town.
Ziskin, who owns two restaurants in Brookline, thinks diners become skeptical of the services they receive if a mandatory gratuity replaces tipping.
“It’ll create this kind of assumption from the guests that if anything goes wrong,” said Ziskin, “it’s because the gratuity was included, and it might have nothing to do with that. It might be a kitchen issue, it might be a staffing issue.”
Ziskin also believes that diners tend to tip less when a mandatory gratuity appears on their bill. Last year, Ballot Question 5, which called for an increase in the minimum wage for tipped workers, was voted down. Many tipped workers thought it would result in customers tipping less. Their opposition indicates that dining and hospitality should continue to be a tipped industry, she said.
Lawmakers need to clarify if this bill will conflict with the “junk fees” guidelines from the Attorney General’s Office that took effect in September, which require restaurants to disclose additional gratuities for large parties on the menu, Ziskin said.
Some restaurants have adopted an automatic service charge model.
Jared Forman, owner of Deadhorse Hill Restaurant in Worcester, started charging a service charge of 20% on every bill when the restaurant reopened after the pandemic.
Forman said the bill is adding more complications by only allowing restaurants to charge a service fee during peak seasons, hoping the rules are consistent and simple.
“It’s very difficult to deal with your guests when these things are constantly changing,” he said.
At his restaurant, instead of a tip pool shared by servers, kitchen employees such as line cooks and dishwashers also share the 20% surcharge. Forman thinks it levels the playing field between the front of house and back of house workers, as the latter are often people who are immigrants, who can’t speak perfect English and have fewer advantages.
“I like the idea that everybody in the restaurant is of equal value and you can pay them according to that value, ” he added.
December is typically the busiest time at his restaurant and most restaurants in Worcester, Forman said. Charging customers higher prices during the peak season will discount their experience and diminish the enjoyment of a holiday dinner.
“I want the restaurant to be about hospitality, not about finding a good deal.”