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If your bill ran 20. for two (a typical example), I'm hoping you wouldn't have an issue with putting down 4-5 dollars in cash for tip.

I'm not a cheap tipper and don't mind one bit paying for good service. But to give you an example, I went to Florida last week on $5, exactly the amount of cash I had in my purse. On the way, I got a biscuit and coffee for breakfast, so I arrived in Flordia with only a couple of dollars. If I visited your friend's establishment, I would not have the cash to leave for a tip, at least not an adequate tip.

I find it a little cheesy that he doesn't want to include tips because of the service fee, however, being in business as well, I understand it. There are some places that pool their tips an divide them among the wait staff at the end of the day. Don't know if this is a solution, but if your buddy did this, taking into account the tips charged on credit cards, deducted his service charge and divide the rest, maybe that's workable. If the wait staff knows up front the service charge will be reduced from their tips they shouldn't have a problem with it. I'd get them all to sign something saying they understand this. On the other hand, the service charge is a 100% deduction for him on his tax return and is not a deduction for his wait staff. He should take the deduction and eat the very nominal charge for tips.

And now you and Sloth knock it off! :-) Neither of you has said anything offensive but it got turned into a pecking party. I understand your point as a business person and I understand Sloth's point as a co-non-cash-carrying person. In my case, and Sloth's too I imagine, your friend's exclusion of tips on credit cards would only hurt the wait staff. Again, the service charge is a business expense that is a tax deduction for your friend. A much bigger expense, that is not tax deductible, is training new employees when the old wait staff quits because they aren't getting tips.

Another alternative is to raise the prices of his menu slightly so it's not shocking to regular customers and is still reasonable. This will offset the cost of merchant services.

So what do you say? You, me and Sloth meet out back with our shovels and jump back in the sand box. Eh? :-)