The Cheesecake Factory is facing lawsuit over pre-calculated 'recommended tips'

May 09, 2018
01:31 A.M.
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A customer of one of the most popular restaurant chains in the world filed a lawsuit after seeing his receipt.


Giving 15-20% tips to servers has been a common practice for a long time all over the world, especially in America.

While some customers and servers are happy with this agreement, there are a few people who feel generous and would give tips higher than the recommended percentage.

If the service is good, most customers tend to give more tips. This makes both the customers and the servers happy.

Meanwhile, one customer of The Cheesecake Factory was not so happy after he received his receipt.


The restaurant is known to give receipts with a suggested tip on it. It has been calculated and it makes it less time consuming for everyone.

Marcel Goldman once ate at the said restaurant and took notice of the suggested tip on his bill.

What he saw drove him to file a lawsuit against The Cheesecake Factory, which has over 200 branches all over the world.

As shown by Goldman, the restaurant does illegal recommended tip practices. He explained that he paid $38.50 for his meal but the recommended tip was above 40% of that amount.

The error supposedly comes when the total bill gets added up. The recommended tip should be the amount that the total party should pay but the restaurant somehow showed through their receipts that it should be paid by each individual diner.


It’s very easy for the restaurant to get away with the discrepancy since most people are in a rush and tend to pay what is shown on the receipts.

Goldman was not one of those customers.

An inquiry on Buzzfeed regarding the issue caught the attention of the restaurant. They responded yet refused to take responsibility.

In an email written by the restaurant’s spokesperson, Alethea Rowe, it stated, ‘All gratuity amounts listed on our guest checks are suggestions only. Guests are free to tip as they please.’