I've studied this quite in depth. I'm not completely done but I'll drop what I have.
We do have sales tax on island which is much less than 16%.
Big establishments say that the 16% service charge has tips included.
I'm yet to talk to a server that actually get any of that 16%, the most logical explanation so far is that it's used for covering breakage of glasses, plates etc.
I do understand the above mentioned reasoning but what I totally disagree is telling the client that it's a tip for the servers and they don't see any of it.
So make sure ask if they do get the "tip" and then determine if you should give them a tip.
Bryan Morris
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