The Economics of Tipping

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A reminder for all of us.

I still occasionally get the guest who will say, “I can buy this wine for half this price at the store.”  Which is true, but it doesn’t come with a staff to serve it and a crew of chefs ready to cook you an incredible meal from a fully stocked kitchen.  I wonder if the same people have ever priced grapes at the grocery store.  If they want to get really serious about cutting out the mark up, that would be an even cheaper place to start.  Better yet, if they buy seeded grapes they could plant the seeds and never have to pay for a bottle of wine again.

Most of you understand the absurdity of this logic.  Those who do not understand have already stopped reading to go buy grapes.  At each step along the process of making the bottle of wine the cost of goods and service, along with a healthy profit margin, are passed along to the next stage.  From grape to cellar, farmers, vintners, bottlers, distributors, and restaurants all add to the price of the bottle in advance.  There is one exception to this rule.  The person who opens the bottle and pours it actually makes that wine less expensive.  At the most basic level, the person who serves the wine pays for part of the bottle for you.

Read the full post at Tips For Improving Your Tips

The Evolution of Free Bread

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Lamberts

Home of the Throwed Rolls

In the far corner of Southeast Missouri is a town called Sikeston.  If you have heard of Sikeston, MO it is probably because of a restaurant called Lambert’s Café.  I’ve eaten at Lambert’s a number of times over the years, but don’t recall what I had.  I always remember the food being good, but nothing amazing.  The menu isn’t what made Lambert’s famous though.  Lambert’s is known around the world as “The Home of the Throwed Rolls.

If you are unfamiliar with Lambert’s, the atmosphere is best conveyed on video.  You almost have to be on guard at all times while eating there because any stray glance could result in a roll being unintentionally thrown at your head.  The rolls aren’t the only thing they give away. Fried potatoes with onions, macaroni with tomatoes, black-eyed peas, fried okra, and sorghum are all handed out free of charge around the dining room.  At first glance it makes no sense to give away so much food.  Yet this small town restaurant is thriving and has spawned three other locations.

In contrast, several years ago an girlfriend at the time worked for O’Charley’s when they released this video on their website.  I immediately declared it the single stupidest marketing move I had ever seen a restaurant make. Why would they spend money to advertise something they are giving away that directly trades off with the things they are trying to sell?  It is at exactly 1:53 in that video where they completely missed the point.  After relaxing with a couple rolls while considering the menu guests face a decision: buy an appetizer or eat more of these delicious free rolls.  Anyone who has ever waited tables can tell you how that decision ends.  At the end of the meal, guests ate too many rolls to buy a dessert, but one more roll sounds good.

Read the full post at The Manager’s Office

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