When eateries print suggested gratuity amounts at the bottom of a receipt, it can be convenient for customers.
It spares patrons from doing percentage calculations on a full stomach, and it helps ensure servers receive appropriate compensation for their efforts. Everyone walks away satisfied.
That is, until restaurants begin manipulating the system and leaving guests feeling duped.
That’s how one Cheesecake Factory diner felt after noticing incorrect percentages on her receipt, BuzzFeed News reported.
Now the dining chain is being hit with a class-action suit.
The Lawsuit Alleges the Chain’s Suggested Tip Is Grossly Overstated
The suit was launched after Marcel Goldman, a Cheesecake Factory patron, says she split a bill with a companion. Goldman’s portion came to $38.50, and the receipt listed suggested gratuities like this:
- 15% — $11.55
- 18% — $13.86
- 20% — $15.40
- 22% — $16.94
Goldman followed the printed amount for 20%, which is the percentage most recommend for servers at sit-down establishments in our Ultimate Guide to Tipping.
The issue is that $15.40 was not actually 20% of her half of the check; it represented 20% of the entire bill. That meant Goldman, relying on the numbers on her receipt, ended up leaving a tip roughly double what she intended.
The practice of printing suggested gratuity totals for the full check on split checks reportedly occurs at 200 Cheesecake Factory locations and all 13 Grand Lux Cafe locations across the country, according to the complaint.
Goldman says she isn’t campaigning to reduce fair pay for service workers, but she and her lawyer want restaurants to be transparent with patrons.
“Consumers should be aware,” Goldman’s attorney, Julian Hammond, told BuzzFeed News. “Why are we left to our own devices to do arithmetic acrobatics when the suggested gratuity represented is not true? The mathematic calculation is misleading. It must end; it needs to change.”
Cheesecake Factory’s Tip Math Has Drawn Scrutiny Before
Cheesecake Factory’s approach to computing tips has been criticized previously, BuzzFeed News notes.
Guests have publicly complained on Twitter about tip calculations being based on totals after tax rather than the pre-tax subtotal. Many found that practice deceptive as well.
Here’s what Cheesecake Factory spokesperson Alethea Rowe said about the figures on their receipts.
“All gratuity amounts listed on our guest checks are suggestions only,” Rowe said. “Guests are free to tip as they please. We believe our guests appreciate service provided by our hardworking staff and tip accordingly.”
The takeaway: Be generous with your servers, but double-check the math yourself — especially when a bill is split or the printed gratuity looks off. For tips on spotting common tricks, see our restaurant menu tricks guide.
Jordan Morales is a staff writer at Savinly.
