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.
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