I don’t know how many times the issue of compensating restaurant workers has come up on CC (I know a LOT of our kids have been servers). This is a novel approach to running a restaurant! It will be interesting to see how this business model takes off. A downside to something like this is that it doesn’t seem to leave room for part-time employees.
Is the restaurant any good?
I didn’t read the article, only your excerpt. I assume any tips will all go to the owner, then?
Any tips will be donated to a program that teaches kids cooking, according to the article.
The restaurant has decent reviews on Yelp.
It’s clear the only way they could afford to do that was to increase menu prices to cover the additional costs. Guess it works out the same in the end for the customers who would tip anyway. And it shields the servers from the ones who don’t tip sufficiently or at all. Will be interesting to see if service levels in that establishment declines since there is really no outside incentive to go above and beyond.
I think as a diner who has spent her whole life leaving tips, it would just feel so weird to walk out of a restaurant and not leave a tip!
@HarvestMoon1 - I wonder if, with the new system, they have a performance review procedure now in place that provides feedback as to how servers are performing. If you want a raise or recognition, you have to provide good service to your customers.
When we dine at the local community college, they have a culinary arts program and there is no tax nor trips charged. You CAN make a donation to the entire program as you exit, but no obligation. The service generally is excellent (though there is some nervousness in the newer class members, of course). Their prices are reasonable and it is nice not HAVING to leave tax or tip, which allows you to perhaps order more than you might have otherwise. They also don’t have a liquor license, you can bring your own bottle without corkage!
In our area we have an old established restaurant which operates very similarly. People have worked full time for 30 plus years. No turnover in staff which is huge in the industry. Good people means good service.
There’s a ton of incentive to go above and beyond. “The restaurant has been inundated with resumes from prospective workers since announcing the changes.” If an employee slacks off, there are plenty to take her place.
Even in restaurants where tips are standard, employees have an incentive to do a good job whether or not they are tipped well. Promotions, better hours, etc. are given to the good workers, not those best tipped. I think paying a living wage and expecting employees to, well, be good employees makes perfect sense. I’m sure my restaurant employee D would agree, though she is not a waitress except to fill in now.
It would be weird not to leave a tip.
What are prices like for the food?
Most people work for a salary and aren’t tipped, yet you still expect excellent customer service. Nurses, teachers, firefighters, office workers…none of these people get more for better performance. I don’t work like that, and I don’t have that mindset, but I’ve managed people long enough to know most employees would rather make a lower amount of steady money than an unknown potential for more that depended on their job performance.
and also might depend on putting up with sexual harassment . . .
It really should not be that complicated. Fixed service charges at a reasonable levels and the restaurant owners covering their fixed costs without grabbing tips. Patrons do not mind paying for the service. They might resent the unwarranted pressures to tip beyond the standard.as some servers with a 12 dollar tab expect a full twenty to make it worth their while to carry a burger and a soda for twenty steps.