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Restaurant Chain Takes High Banking Fees From Servers’ Tips

Restaurant Chain Takes High Banking Fees From Servers’ Tips


Banks have been taking some highly controversial moves in order to make up lost revenue that they can no longer gather thanks to the regulation of “swipe fees” when customers use their banking cards.

But banks aren’t the only ones turning to the people with the least amount of funds in order to make sure they don’t lose their margin of profit.  Parasole restaurant chain in Minneapolis is trying to recoup their own lost finances from increased banking and credit card fees — not by raising prices, but by taking it out of their servers’ credit card tips.

According to City Pages, a restaurant employee informed them that the owners of the chain have announced to the serving staff in their five Twin Cities restaurants that a new policy will be put in place where 2 percent of each waitstaff’s credit card tips will go back to the restaurant to compensate for the fees associated with customers using a credit or bank card rather than paying in cash.  Servers, who are already working for minimum wage and tips, are incensed that their pay is being used to cover the lost profits, essentially asking them to take a pay cut to save money.  “People aren’t tipping as much because the economy is bad,” the server said. “Now they’re asking us to take a 2% cut in income.”

So is this just an isolated event, or the beginning of a new trend?  Just as an announcement about testing out debit card fees in August has already turned one bank into making the fee a permanent fixture that most banks are soon expected to follow, no doubt more restaurants will also be looking into ways to make their employees cover any changes in business expenses in order to leave their profit margin untouched.


Related Stories:

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Single Mothers Could Lose Child Support To Credit Card Companies


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12:28AM PDT on Jun 1, 2013

Your write-ups are far more than wow!
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7:12PM PST on Nov 7, 2011

So evil. How on earth is this legal?! Everyone who plans to eat at this place should pay in cash or at least tip in cash. I would say boycott but that would only hurt the workers more. So terrible.

9:27PM PDT on Oct 20, 2011

wow...that is so wrong!!

10:39PM PDT on Oct 19, 2011

Parasole Restaurant Holdings
5032 France Avenue South
Edina, MN 55410
Tel: 612-822-0016

For those who wish to complain (your calls and letters will be appreciated by waitstaff everywhere)
Let's try to cut 'n paste this address every few posts. Thanks!

6:07AM PDT on Oct 18, 2011

I eat out quite a lot. I will now always leave the tip in cash. I'm glad to hear from the actual servers on this thread about how this all works and affects them and it's wrong to treat people like this.

As for the right wing nutty Steve R's comments I can only say I have never paid a bank fee of any kind in twenty five years except for a couple of $3 ATM fees in an emergency and I have accounts at three major banks. I am an actual fiscal conservative and I am thrilled that there is now more regulation about how much banks can charge people and that there will now be an agency that watches out for the banking consumer. That is unless the greedy Republican Corporatists and the deluded Teabaggers manage to kill it before it starts fully functioning. Two years ago one of my banks made a two thousand dollar error and it was four months and long hours at the bank and on the phone and two required police reports until I got my money returned. While trying to get that money back I found out that there was little to no regulation at all for the banking industry and that there was no one place I could even go to complain and that the bank can wait months to even acknowledge the mistake much less return the money. All I could think of was that if I had been an average person struggling with day to day expenses I could have landed in tragic circumstances over the bank's mistake. I am looking for a Credit Union for at least some of my money now. All these fees banks want to charge

11:33AM PDT on Oct 11, 2011

This sounds underhanded to me. When I tip someone at a restaurant, I expect ALL the money to go to that person because he/she has given me excellent service. Sneaky.

6:17PM PDT on Oct 10, 2011

Disgusting! Sounds illegal.

6:13PM PDT on Oct 10, 2011

This sounds illegal to me, the customer intends the funds to go to the waitperson, if the employer then keeps any part of that tip it's theft, isn't it? If I worked for this chain I'd ask the customer to give tips in cash or don't tip at all, I'd certainly let every customer who offered a tip via the credit card know exactly where the money was going.

9:53PM PDT on Oct 9, 2011

Shouldn't his restaurant chain be called Parasite ?

7:50AM PDT on Oct 6, 2011

This is really awful. I want to point out (if someone didn't already) that servers usually don't make minimum wage and tips, as the article says. If you work in a tipping industry, it is not required that you be paid minimum wage. Most servers make between $2-4/hour in addition to tips. Because the tips are taxed along with wage, the tax often voids the whole wage. When I was server most of my paychecks were VOID. So, the ONLY money most servers make are the tips...

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