Parasole finally responds to controversy over credit card tips policy

Categories: Investigations

Parasole Restaurants2.jpg
Parasole restaurants issued a response to its credit card tip policy on Twitter.
Parasole Restaurants has finally issued a public response to the controversy over their new policy on credit card tips.

Parasole instituted a policy last week cutting 2 percent of its servers' credit card tips to pay rising bank fees on the transaction.

In statements issued via Twitter this afternoon, Parasole said its success is built on taking care of its guests and employees, then added that its servers are better off when customers use credit cards because they tend to spend more money than people who pay in cash.

Nowhere do they directly address the public relations fiasco their perfectly legal but unpopular new policy has unleashed.

Parasole Restaurant's success is built on taking care of our guests & our employees. The average tenure of our servers is between 4&5 years.
Oct 04 via HootSuiteFavoriteRetweetReply

Guests who pay with credit cards spend on average 25% more than guests paying cash. This results in higher tips & wages for our servers.
Oct 04 via HootSuiteFavoriteRetweetReply

We put in another call to Parasole to ask if a live human being would be willing to talk to us in greater detail than these two tweets. We'll let you know if they get back to us.

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Parasole restaurants dipping into tip jar, taking 2% of wait staff's credit card tips
Parasole restaurants' new policy on tips may be unpopular but it's perfectly legal



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25 comments
will6iam
will6iam

It's funny that whoever wrote the belated ugh-fficial statement just doesn't get it!? I would never actually eat at any of these places, so the management's policy doesn't surprise me--- I say, "A TIP is a TIP, and a RIP-OFF is a RIP-OFF!! But what if this is another... Hostess!? OMG, no more Twinkies, no more Good Earths!!!

Bartender
Bartender

Servers and bartenders are already required to claim 100% of all charge tips for taxes.  Now 2% off the top back to the house.  It's not the amount, it's the fat cat holding the little guy down aspect that stings.  Please, please always tip in cash; it's a much more valuable gift for good service!

Unknown
Unknown

I am working in a restaurant "considering" this option. If in a really good tipped position, making $1,000.00 a week, at 40 cents for every $20.00 I make, it will equal over $1000.00 a year. If I stay in the restaurant businness for 20 years, that's $20,000.00!! That's alot of money no matter who you are. I have no decision making options in how my guests will pay for the goods and services my employer sells. If he/she wants to use credit cards services in his restaurant, he should have to foot the bill for the fees this inccurs. Now the decsion...do I stay in this business that continually tries to dip into server pockets? It's ridiculous. Quit trying to bite the hand that feeds you, restauranteurs. Get over yourselves.

Deethomaz
Deethomaz

Two things: 1.) If credit card paying customers spend so much more money, I'm hard pressed to see how increased use of credit cards is hurting the business. 2: The financial reform bill LOWERED the amount credit card companies can charge businesses to process credit card payments.  They can't hide behind that  excuse. 

Ken
Ken

Because of the increased use of credit cards, which now account for 90% of all restaurant transactions, credit card charges to the restaurants you visit now exceed the cost of all utilities for the restaurant (electric, water, sewer and gas) and restaurants use a lot of those.  I am also in the restaurant business and will tell you that is a fact.  When you pay with a credit card, the restaurant fronts the whole tip to the servers, has to wait for their money to cover it and then has 2.5 to 3% or more deducted from the money they get from the credit card company.  The answer is to tip in cash.  In fact, pay your whole bill in cash, we would love it.

One Eyed Jacks
One Eyed Jacks

This is the new 2% Durbin tax! You can thank our politicians for that.

Boom Boom Shikadance
Boom Boom Shikadance

I understand that taking 2% out of server's credit card tips is a bit of a joke, in order to cover CC taxes. But lets be real about this, say on a good night for a Parasole server they make... $300 in tips, all on credit cards...Parasole is taking $6 from that? 6 Dollars. $1,000 in CC tips, they take $20. My dear god, how are server's going to pay rent when they're being stripped of enough money to pay for 1 beer, cocktail or cab ride?!?!

Bottom line: Parasole pulled a cheap move, which is in line with their ownership. No news there. This is hardly a story that should've gained this much attention. The only people who should care about this are Parasole servers. No one else.

interesting
interesting

I'd like to see the person posting these stories do it from a more objective standpoint, instead of deceiving the readers. Why not explain how this isn't actually a charge Parasole came up with to steal from their employees, like you've lead people to believe? Why not explain how credit card companies charge businesses? Why not find out from your sources and reportthe how much money they make annually, so people understand they are not making anywhere near minimum wage (like your 1st post stated)? Why not report on other restaurants that have been doing this same thing or even making their servers pay a % of the ENTIRE transaction?

Why not provide more of the facts and let people decide based on all the facts versus emotion. As a person who reads more then just the headlines and independently investigates the facts himself, you have lost your credibility with me.

Johnny
Johnny

"fiasco"??  How so?

ludwigtr
ludwigtr

I talked to a couple servers there, and they don't seem to care...

Ez4u
Ez4u

I will never go to these restaurants....period.  I suggest the workers leave and find a job at an establishment where owners are not greedy douchebags...

Stein101
Stein101

I just tip cash even if I charge my bill. Hope they don't take from the cash tip jar!!!

JonnyBeGood
JonnyBeGood

The fact that they use Twitter explains it all.... useless company, sh1t food.

Honestly
Honestly

Let me get this straight, they're saying "we make 25% more money from credit card purchases" as some sort of an explanation for why they need to take an 2% from their employees' credit card tips? 

Chris
Chris

The PR controversy that City Pages created?

433
433

I might just send in my resume. They obviously don't have anyone in their PR department.

Amagstadt
Amagstadt

Why don't they raise their prices 2%? At least that's a sure thing- there is no guarantee with tips.

Kat
Kat

Then don't accept credit cards, Ken.  This action should absolutely be illegal.  The customer has indicated a certain amount as a tip for the server.  What right does the restaurant owner have to do something else with that money?  I hope more and more people learn from this to tip in cash.  If you want good service when you eat out, stand up for the hard working servers who get paid practically nothing in salary.  Your tip is how they support themselves.  Pay in cash.  Enough corporate greed, it's morally repugnant.

Kat
Kat

It doesn't matter how much the credit card companies charge, what manipulations are used to make more money or how many other restaurants are already doing this or something equally as egregious.  It's wrong.

Allaboutbi
Allaboutbi

Yes! Because its so easy to find employment. Its a great company and they could probably go without you:-)

Jesterlove17
Jesterlove17

This isn't "greedy douchebag" behavior. A lot of restaurants do this to keep a little more money in the safe and %2 for servers isn't much. I'm at my 3rd restaurant that does this, they have to do it to stay afloat because credit card transaction fees are rising. 98$ instead of $100 I'm not trippin' about it, it's a recession.

Kat
Kat

Me, too.  Been tipping in cash for years. That way I can hand it directly to the server.

interesting
interesting

Tipping with cash is the best solution. It is not the restaurant that is pocketing the 2%, that is the fee the CC company charges, more accurately a portion of the percentage the CC companies charge. Parasole is not taking money from their servers, they are no longer offering the benefit of paying that first 2% on only the tipped portion of the CC charge

Kat
Kat

Wait a minute.  "..they have to do it to stay afloat..."?? Now that's corporate brainwashing at it's best.  Wait staff make little more than $2/hour in salary.  They support themselves on tips and when, as a customer, I leave a tip my intention is for that tip to go to the server, NOT the owners.  I pay them for the food and that's where they make their profit (oh and believe me, it's handsome).  I'm amazed at people's passivity, then again that's why we're living in the corporate country with corporate government that we're living in today.  Keep handing your money over to those who have more, they'll just keep having more and you'll keep having less.  Good luck with that.

Emily Koppes
Emily Koppes

In Minnesota, wait staff make at least minimum wage, plus tips....not $2/hour.  Not defending Parasole at all, but I had to point out that you had your facts WAY wrong.

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