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Joined 1 year ago
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Cake day: June 11th, 2023

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  • You are confusing direct payment and general revenue/fees from which the store pays employees. You are correct Handling fee is not directly transferred to the employee. Handling fee is revenue collected by the store. Now that they have a big pool of revenue, they pay their employees from it (the minimum wage you referred to). Read that in context of the next two paragraphs.

    WRT cashiers and stockers that was part of the existing business model. The general profit from groceries covered those expenses.

    The general profit from groceries does not cover the expense of a different business model of hiring additional employees whose sole job would be to walk around filling orders. Those additional jobs require additional revenue, which the store gets from handling fee.

    The next question may be “why a Handling fee” instead of paying those employees from general profit from groceries. The answer is because online orders have a new direct cost, which the store wants to put on those customers that are creating that cost. That’s the short of it.

    Tipping is an entirely different part of this.