Tuesday, May 24, 2011

As if anyone needed another reason to dislike the NY Yankees

I know, I know.

It’s not like the Boston Red Sox are anyone’s darlings, other than those of use who are card-carrying members of Red Sox Nation.

But as long as the Olde Towne Team can retain the moral high ground by having a smaller payroll, then the Bronx Bombers will remain the bad boys of summer. (For the record, the Yankees payroll of 2011 opening day payroll of $201.7M greatly exceeds that of the number two Phillies ($173.0M), and the second runner up Red Sox, who come in at $161.4M.)

Arguably, neither Red Sox nor Yankees fans are getting exactly what they paid for, at least so far this season. But that’s a story for another day. And, as the say, the season is a long one.

What’s emanating from Yankee Stadium that’s most interesting of late is the brouhaha (or is it brewhaha) over who gets the “service fee” added to the price of a beer and a dog served to those sitting in the swank and pricey field-level seats. These are the ones you see, at least partially empty, behind home plate, where you also get to watch the servers scurry back and forth carrying food to the “haves” so that they don’t have to hit the concession stands with the hoi poloi. (At least they haven’t figured out a way for the swells to relieve themselves after all those cold ones without having to head to a restroom. At least not yet.)

There may well be seats with waiter service at Fenway Park, but I’m usually in the get-in-line-if-you-want-a-hot-dog seats, which are also serviced by the kids who race up and down stairs all game long carrying heavy aluminum boxes full of hot dogs or Sports Bars (incredibly shrinking ice cream bars) or cases of soda. The kids hawking the cotton candy have it easy: their wares are light.

I don’t buy all that often from the kids who work the stands, but always tip them when I do.

The folks working the premium seats at Yankee Stadium also work for tips.

But they have a particularly difficult time trying to extract them. So they’re going to court to try to even the tip-giving playing field up a bit. Here’s the story:

When you order something at Yankee for delivery to your seat – say, a $10.50 beer – a 20 percent “service fee” is added.

Legends Hospitality, the concessionaire co-owned by the New York Yankees, the Dallas Cowboys, and Goldman Sachs, allegedly pockets the 20 percent service fee attached to food and drink in violation of New York law, according to a class-action lawsuit filed against the company by three Yankee Stadium servers this week. If certified as class action, the suit could involve more than a hundred servers and hundreds of thousands of dollars in claims.

Servers do a small portion of that service fee, and can also receive tips, but, given how the 20% service charge is presented, it’s not surprising that most fans think they’re covered, tip-wise:

According to the suit, the menus field-level spectators find in their cupholders include this disclaimer: "A 20% service charge will be added to the listed prices. Additional gratuity is at your discretion." That phrase "additional gratuity" would seem to imply that the 20 percent is, in fact, a gratuity, but [plaintiffs' lawyer, Brian] Schaffer says his clients don’t get that money.

Instead, they get that a far more meager 4-6%.

No wonder they’re saying now wait just a darned New York minute.

And, this being the New York Yankees, and the Dallas Cowboys and Goldman Sachs, for that matter, things are even worse.

While technically the servers can receive tips, they’re not allowed to answer the question if a fan asks them where the 20% service fee goes. If they tell the truth – which is most of it doesn’t go to me – they can get fired. Instead, they can only murmur that ‘additional gratuity is at your discretion.’ Words never uttered in the course of natural human conversation in the history of mankind.

People in the bleachers tip the servers, and I’m guessing that at least some of those in the gold-plated seats at Yankee would want to do so, as well. After all, if you’re already in for $350 for your seat, and $10.50 + 20% service fee for a beer, it’s no big deal to throw a few bucks at someone who’s trying to make a living selling refreshments at the ball park.

If Legends wants to sell a beer for $12.60 rather than a lousy $10.50, why don’ t they just charge that much to begin with? Come explicitly clean about what proportion of that is allocated to server compensation. That same piece of paper that mealy-mouths about “additional gratuity” could be up front and say “4-6% (depending on volume) of this price goes to your server; any other tip is up to you.”

No doubt they’ve spent millions of dollars on focus groups and surveys that have told them that people feel like they’re getting a better deal, and feel more like spending, if they’re charged $10.50 plus and additional 20%, than if they’re charged $12.60. Especially if they’re being misled into thinking that the 20% is a tip.

Here’s how Legends Hospitality positions itself:

Legends’ highly innovative approach is reshaping the sports business landscape, and our award-winning service has helped increase revenue in every Legends venue.

Experience sports and entertainment in a whole new way — the Legends way — where it’s all about the fan.

That innovative approach – the con job – may be helping increase revenue in all of their venues, but that “it’s all about the fan” kind of makes you choke on my hot dog, doesn’t it?

Needless to say, in this contest, I’m gonna root, root, root for the servers. If they don’t win it’s a shame.

Source: Huffington Post.

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