As a colleague and I finished sipping our whiskey (mine was an Islay Scotch and hers was an Irish), we ended up discussing the service charge that was added to the bill and what to do with the “additional tip”. I have long had a policy of not adding additional tip when a service charge is already added; my general take is that if the establishment is going to distribute the service charge to the servers and other staff, they’ve removed my obligation to tip based on the quality of service.

Honestly, I think servers (and their restaurant overlords) don’t really understand that replacing a gratuity with a service charge is the equivalent of putting the servers on commission, just like sales people. Since the service charge is a percentage of the bill of sale, servers should work hard at upselling their customers to increase the amount of money they earn. Instead of just asking if the table wants drinks, the server should be pitching the best cocktails on the menu and the restaurants ought to collaborate by offering on-the-spot incentives like discounts (perhaps a discounted appetizer if drinks are ordered?). In suggesting dining selections, the servers ought to lean towards the pricier items on the menu. And, of course, dessert, after-dinner drinks, etc. could further pad the total.

This all probably sounds unappetizing but I have no doubt that some smart servers and restaurants are going to figure this out soon. In some ways, this is a positive move. While servers are no longer being directly rewarded for the quality of service, they now become partners with the restaurant in driving revenue.

If you want to learn more about services charges (at least in Washington state), the Washington Hospitality Association has a page discussing them.