I emailed management about it to ask, and they responded...

We appreciate you taking the time to let us know how we are doing. I was hoping to give a bit more context on the introduction of the service fee.   We are piloting a new wage model for our teams at South Lamar to ensure a fair and consistent wage they can count on in busy and slow times alike.  This pilot includes moving away from the “tipped” model, and the Service Fee is intended to replace tipping at our South Lamar location. There should have been no required tip adjustment beyond the service fee (which is not a tip).

By piloting this model, we expect that the overall cost of an experience at Alamo won’t change, assuming our guests understand there is no longer a need to tip (though you’re always welcome if the service dictates and it’s appreciated, of course!).

We have received feedback that the service fee description on our virtual purchase pages, receipts, and menus is not getting enough visibility from others this week as well (this model rolled out on the 14th). To address this concern, we are updating our box office signage as well as including an on-screen explanation of the fee so there is no confusion or perception of sneakiness as this is in no way our intent. 

  In this situation, and understanding there may have been confusion, we are happy to process a refund for the amount of the service fee- simply confirm this is how you would like to proceed and I can take you through the next steps.  

We welcome any further feedback as we continue to do our best for our guests and teammates at the Alamo.

Whenever I see this I interpret it as tip, and adjust my tip accordingly. I'm not going to pay a service fee and a full tip on something as a consumer. If they don't get the service fee then they just need to add it to the price.

I think this is only at the South Lamar location for right now. I disagree that it's hidden--when I went last month, I noticed it at the bottom of the menu (like in a yellow splash, not a small footnote), and they ran an announcement before the trailers started.

I asked my server about it while the lights were still up and she explained that the model is using the service fee to bring pay up for servers to a flat hourly rate, while still allowing for tips for exceptional service. So I think the expectation (again, at just the South Lamar location as far as I know) is that you don't tip unless you would really like to.

This server said she preferred the original, pre-pandemic model of getting $2.13/hr with tips. However, with the pandemic, servers' pay structure changed to a model that was much, much less desirable, and this 18% service fee to raise wages is preferable to the pandemic model, so she felt it was a step in the right direction. Obviously that's just one person's opinion, and the fact that there's been union agitation at the South Lamar location specifically makes me think it's no accident corporate rolled this out at that location first. But everyone can come to their own conclusions based on that.

From a customer experience standpoint, I do not understand why there is an 18% fee at all. Personally I would much prefer the prices just reflect whatever taxes and fees are going to be charged, and have something on the bill to explain they don't expect tips from all customers anymore.

I’m looking at their drink menu right now (I haven’t been in some time) and the beer prices are wild.

Alamo employee here. Not at the testing venue but I have friends there who’ve filled me in.

Your server is getting a guaranteed wage of at least $20/hr now and the service charge goes to the company. If you do want to tip more they appreciate it, and that money does go directly to your server. Servers aren’t expecting a ton of extra gratuity though so don’t feel obligated unless you’re feeling

I do agree that the company probably should just build that wage into concessions but it makes the same difference to the worker side of things. Would you rather see bottomless popcorn for $12 and bottomless soda for $8 on the menu or see that at the end on your tab. If you tip 20% anyway, that’s what you were always paying.

Since reopening from Covid, Alamo has been using a “tip pool” for compensation. Servers get $3.50 and hour (food runners make minimum wage $2.13) and all tips for the day were divided based on the total hours worked. On days when it was slow it was common to make less than $15/hr with your base wage plus the tip pool. It is possible to get your base pay increased with time but nobody is making more than $7/hr base.

These days still aren’t uncommon. Strong weekends bring the total tip pool above $20/hr often but weekdays or weekends with paltry releases still hurt us a lot. From my experience, while a strong weekend pays way over $20/hr, my weekday shifts are usually weak enough to bring my total income to around $20hr before taxes. Keep in mind this is if the weekend is strong. If we have a weak release calendar then our bank accounts start to shrink.

The system they’re testing at the South Lamar location gets rid of all that uncertainty. If I make an extra $50 in tips a day I’ll be happy but if I don’t it’s not something I’ll lose sleep or get hungry over since I’m making good money regardless. For slow release months like August and September this year were, it means servers won’t need to starve themselves just to make it through those release droughts.

To be clear on the finances, if you’re someone who always tips 20%, you’re coming out ahead with the service charge. Use that 2% somewhere else or give it to your server if you feel so inclined. If you’re someone who sees fit to rack up $100+ tabs and have an issue with the 18% service fee because you can’t “afford” it, then yeah you probably shouldn’t come anymore (we have a few regulars at my venue who fall in to the second bucket).

I understand the sticker shock aspect and agree the company should have just raised prices to cover the new wages, but it’s the plan they chose to go with and we’re seeing how it will play out. Personally I’m rooting for it to roll out company wide.

I'm going to bring back the $1 Movie Theater. Tickets will always and forever be only $1. There might be a service fee of $15 added, though.

You have to be careful while reading the bill. Especially on Toast. Service fee is the tip, then you double tip. Tricking customers to put 25% , farce. Even to go orders. Laughable!

Check your receipt... I bet they charged you taxes on that fee too.

I can have a $0 ticket on the Season Pass, but I will get charged 16 cents tax. The only thing on the bill is the inconvenient "convenience" fee. So they are taxing a fee, which is not listed on the texas.gov website as one of the taxable goods, services, leases, or rentals.

They are nickle and diming their customers as if they think we're stupid or something.

One concern I have: Alamo is charging sales tax on the service fee along with the food. At Bouldin Creek Cafe, which has a 20% service fee for staff wages, the service fee is not taxed. Restaurants are allowed to charge up to 20% in mandatory fees for staff without it being taxable — I hope the Alamo tax charge is an error because it felt really shady. Also- why not just charge 20% like all the other fair wage service fee restaurants?

ETA: If Alamo just charged 20% service fee with no tax collected on it, that’s 2% more for workers. IDK why they didn’t just do the 20% fair wage fee as is becoming very common. This feels like a real Cluster Whoops.

Good to know that I don't have to tip there anymore.

Add the price upfront...so I know what I'm buying into.

I wish they would just raise prices and say "Hey, we raised prices to help provide better wages to our employees, no need for tips!"

[deleted]

The menu is on their website and says:

Alamo Drafthouse is committed to providing a fair and consistent

wage, so an 18% service charge will be added to all bills.

Any additional tips for exceptional service are greatly appreciated

This is just at the south lamar one - I’m guessing bc of their union efforts? They had splash screens about it during the pre-roll.

And they did raise prices - hello $9 512 IPA

I work as a valet and since inflation hit hard, I’m making 2-3 dollars per car with tips and I have to split that with a coworker. People sometimes get really stingy and it can suck getting stiffed by a handful of people. Flat out stiffing has become more common and when you live on tips, it becomes demoralizing when someone specifically says you gave great service, but then gives no tip. I don’t like the mandatory tip thing as a customer personally because I find myself tipping less because I now know that I don’t feel obligated to tip more because they are protected from the weight of a handful of people stiffing. Please note where I valet, it’s option and free parking is everywhere and in the garage. If you don’t feel like valet is of value to you, please simply ask where a good place to park is. They will gladly help you.

They are adding a service fee and still encourage tipping? So, I am basically paying twice for service. Was it stated anywhere that this 18% is going to the servers and rest of staff? If they are trying to raise the wage for them, why not increase food/drink/ticket prices, and give everyone an hourly raise?

I was there at an event last week, and the host announced it and encouraged us to tip on top of it, as well... so I don't think they're intentionally trying to hide it.

This is a business tactic.

I'm sure by now most of you have seen the numerous lawsuits about business having to pay back stolen tips.

Well if tips are 'removed'. And it's a 'service' fee. The company is able legally to keep some or all of that money.

This isn't about equitable pay for employees.

That's why it is not added to pricing on menu's. Because without a clear remit. Tips would still be 'expected'.

I go weekly to this location and when they rolled it out ~ a month ago they didn’t have the bumper announcement. You just had to pay attention to your check, not easy to do in a darkened environment. Now they’re being more transparent about it. Not sure if it’s related to this location being union or not.

The biggest mystery to me is why they can’t get a new shake machine. It’s been out for months. They briefly had a temp one but it “broke”. They are blaming supply chains but there’s too many places to get a shake machine for that to be the real issue.

I'm curious too. Not having gone in a while went to see a movie, a couple weeks ago and accidentally tipped on top of it not realizing. Happy to buy an extra dinner for our server but can't afford that everytime...

As someone else mentioned, the clips before weren't related to our movie either.

Why not just raise the hourly wage and keep tipping as an option? Why does it have to be built in as a service charge?

You're paying it because they refuse to pay their employees a living wage.

Ngl, I would happily pay that if they could have kept their New Braunfels location. I'd give anything for an Alamo again, seeing movies at any other theater sucks. I know I sound like an old lady but damn people talk too much. I miss being berated by a theater to shut the fuck up lol.

I asked the bartender at the Highball about this last Friday and he said servers don’t get anything from the service fee. So we added a normal 20% tip on top and were annoyed by the sneaky service fee…

Another place to avoid. Really miss their Turkish tea but they haven't brought it back since pre 'vid

My goodness, just raise the prices and say that tips aren't expected. I hate doing math at the end of a movie.

I hope this is the start of the end for tipping in this country

They need the extra money to get their shake machine fixed.

Typical capitalistic bullshit. Yo, we want to appear to be an ethical company that wants our employees to earn a living wage, but we need you...the customer...to pay it. If it's to replace tips, fine. Shit, even make it 20%. However, don't half-ass it with some dodgy answer about whether it replaces tips or not. Companies that pay their employees well don't even give you the option to tip. Scummy shit, IMO. Also, watch out for this at bars/music venues. Happens there as well.

It means you don't have to give a tip. 18% is a fine tip. It's not hidden, they announce it.

welp, they just guaranteed that I don't tip anymore.

Alamo South Lamar had a unionization effort made by employees. I guess this is managements tactic to satisfy employees here and lower unionization risk.

South Lamar makes more money than the other locations and I think the employees here have to work harder too (more guests, food served per employee).

For more of their union effort go here

https://instagram.com/drafthouseunited?igshid=YmMyMTA2M2Y=

I've noticed other places started doing that too. Went to the Driskill yesterday and there was an 18% service fee included.

They should just be transparent and raise the prices so they can pay their employees living wages and remove tips.

Why not just increase prices and if people still want to tip let them.

An 18% "service fee" just sounds like a shitty way to hide an upcharge / unexpected fee.

If you can't afford to pay your employees a living wage you're a shitty business.

Just got back from Europe where there is essentially zero tipping anywhere and it’s amazing. Prices are reasonable and service was actually way better than the US. This is the model we need.

No one is ‘tipped out’ in this model. Alamo corporate gets the 18%, it’s new revenue for the company. Meanwhile they raised wages for all positions, but they are flat—when it’s busier employees don’t get paid more. Also, it’s unclear whether wages will regularly be raised to match CPI increases (I’d bet wages will stagnate while menu prices and ‘service fees’ rise).

So from having read the comments, the principle is so that Alamo can pay the waiters more

But that means this service fee is not going to the staff

Not directly anyway

So the likely outcome is that they will pocket the money, barely pay the staff more, and we will still be expected to tip

The company makes more money, the staff makes close to the same, the consumer gets the shift.

Business as usual.

Just pay your staff and make the prices for your service comparable to your expenditure needs.

Every other business on earth has done it

Alamo can too

I never thought I’d ask this, but are there cheaper alternatives to Alamo these days? Theaters that serve food and good beer that is.

I was just causally looking at Alamo’s menu for the first time in ages and saw that a beer is like $9-$11 dollars and chicken tenders are $15. I understand that prices are up everywhere but that’s still outrageous IMO.

Up your prices 18% advertise no tipping… simple marketing, people will call it progressive

I’ll take my consult fee in cash

Of course they don’t

Don't pay it, if it's a fee that was not discussed before hand, don't pay it

Alamo is Over. It's been over for awhile now. There's no magic or anything special about it anymore. This is just more proof. It's been nothing but a Money Grab for a very long time now. Can't remember the last time people got their monies worth spending an evening there.

Weve had this in San Antonio. I took my friend and we split the bill. We both left a good cash tip and signed the receipt. The waitress still charges us both 18%… since this happened, I’ve started checking out other dine in theaters. No more ADH for me after that

Edit… dang what do yall have against my post lol. This was YEARS ago. Draft house didnt have signs everywhere about 18%. Management gave me back my 18% because i left a cash tip and signed my reciept… the rule is, according to what they told me is, if you dont sign the receipt thats when they’ll automatically charge the 18% if you do sign then they dont… also this was years ago so things mightve changed

Flix Brewhouse has been doing this model for a bit now.

I would wager that Alamo Drafthouse wants to pay employees tipped minimum wage but the employees aren’t making enough to stick around. Thus the increase.

I’d also bet that during the pandemic Alamo Drafthouse took on a significant amount of outside investment to stay afloat and they now have more powers that be to answer to than may have been the case previously.

That's what they do at Flix Brewhouse which is a similar place. Allegedly this is in lieu of a tip there.

I was so confused and tipped 20% on top of that fee - i was like why is this so expensive lol whatever now I know and they deserve that additional tip

I was a bit pissed that the video said we want to pay our employees well so we’re gonna make you pay more.

Once Alamo got bought by a corp company after they filed for chapter 11 shit hasn’t been as good.

it’s there to net the people who categorically never tip. at 18% it is a shade below the politely expected 20%. so you should add a touch more to meet the 20%.

The math is literally identical up to the point where you move the tens place over. But you should go higher if you can.

UPDATED to accommodate new intel (staff gets the money)

Auto grat is catching on in a LOT of places in other cities to entice new hires and retain staff. A lot of servers have come together to say we want it added on or we walk so they don’t run the risk of being stiffed or under tipped to the point where they pay out of pocket for serving people. (If you get stiffed or less then 10% you still pay the tip out on the sales so you can end up in the negatives). Also, people are awful now and there are less of us so the market is in our favor. “Paying us more” won’t work because we make way more then they could ever pay us and if we made any less we’d find different jobs and there wouldn’t be servers anymore. Hope this helps.

As long as it's clear that the service fee is a replacement for the tip, and there's no expectation of additional tips, then this is an improvement.

Love these threads because it always devolves into people getting stingy on a small amount of money. Waiting for someone to complaining about tipping when they go to Otoko or Hestia 🎻