Restaurant Eliminates Tips

MadJack

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Do you think this will work? I think it would depend on the restaurant. Wouldn't the restaurant have to raise prices since they are the one paying for the servers now? I don't think it will work and I prefer tipping based on how I'm treated and the service I get.

http://www.msn.com/en-us/foodanddri...s-dollar35000-a-year/ar-BBhBGMT?ocid=U147FDHP

[h=1]Restaurant Eliminates Tips, Gives Employees $35,000 a Year[/h]They will also be offered health insurance and paid vacation time.
Is the the future of the restaurant industry tip-free? One Pittsburgh restaurant certainly thinks so. The owners of three-year-old Bar Marco are not only abolishing tips, but are giving their employees a salary with benefits. According to Next Pittsburgh, full-time employees will be paid a base salary of $35,000 a year and will be given health care and 500 shares in the company. Employees will be asked to work a maximum of 40 to 44 hours per week, will have two days and one night off a week, and will receive 10 paid vacation days per year. Co-owner Robert Fry tells Eater, "America needs to realize that working in the restaurant industry is an occupation." Fry worked with long-term employees to create the plan.
Fry notes that by April of this year, 20 of the restaurant's employees ? both front and back of house ? will be switched over to salary and that the restaurant will no longer accept tips. There will still be a handful of part-time employees, "mainly college students," says Fry, that will work as servers' assistants and will be paid $10 to $12 dollars per hour. Unlike other restaurants that have eliminated tipping, Bar Marco will not be adding in a service fee or raising their prices. Instead, the co-owners are hoping to grow revenue by expanding their menu, increasing the number of covers they do in their wine room, and upping the number of events they host.
Fry tells Eater that all employees are on board and have signed contracts. He told Next Pittsburgh that with the salary comes other expectations: They will have a lot of responsibilities, too like being present at bi-monthly finance meetings. We want complete transparency. We want people who want to be part of what we are doing and who want to grow with us."
Back in June, another Pennsylvania restaurant announced that it would ban tipping. The co-owners of Bistro Girard decided that they would pay their waitstaff a "living wage" of $11 per hour and offer them full benefits as well as profit sharing. To offset the costs, the restaurant would raise prices by 10 to 20 percent.
 

marine

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It might work. WWill be fun to watch and see.

Not a true comparison but the Waldorf hotel in chicago doesn't allow tipping of any kind either to any of the employees and the service is top notch still. Been rated #1 hotel in America for a few years now. Hasn't made anyone lazy at all, if anything the employee had a bit more pride because ththey weren't just hustling for a dollar tip.
 

kneifl

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Don't think it will work

Don't think it will work

Do you think this will work? I think it would depend on the restaurant. Wouldn't the restaurant have to raise prices since they are the one paying for the servers now? I don't think it will work and I prefer tipping based on how I'm treated and the service I get.

http://www.msn.com/en-us/foodanddri...s-dollar35000-a-year/ar-BBhBGMT?ocid=U147FDHP

[h=1]Restaurant Eliminates Tips, Gives Employees $35,000 a Year[/h]They will also be offered health insurance and paid vacation time.
Is the the future of the restaurant industry tip-free? One Pittsburgh restaurant certainly thinks so. The owners of three-year-old Bar Marco are not only abolishing tips, but are giving their employees a salary with benefits. According to Next Pittsburgh, full-time employees will be paid a base salary of $35,000 a year and will be given health care and 500 shares in the company. Employees will be asked to work a maximum of 40 to 44 hours per week, will have two days and one night off a week, and will receive 10 paid vacation days per year. Co-owner Robert Fry tells Eater, "America needs to realize that working in the restaurant industry is an occupation." Fry worked with long-term employees to create the plan.
Fry notes that by April of this year, 20 of the restaurant's employees ? both front and back of house ? will be switched over to salary and that the restaurant will no longer accept tips. There will still be a handful of part-time employees, "mainly college students," says Fry, that will work as servers' assistants and will be paid $10 to $12 dollars per hour. Unlike other restaurants that have eliminated tipping, Bar Marco will not be adding in a service fee or raising their prices. Instead, the co-owners are hoping to grow revenue by expanding their menu, increasing the number of covers they do in their wine room, and upping the number of events they host.
Fry tells Eater that all employees are on board and have signed contracts. He told Next Pittsburgh that with the salary comes other expectations: They will have a lot of responsibilities, too like being present at bi-monthly finance meetings. We want complete transparency. We want people who want to be part of what we are doing and who want to grow with us."
Back in June, another Pennsylvania restaurant announced that it would ban tipping. The co-owners of Bistro Girard decided that they would pay their waitstaff a "living wage" of $11 per hour and offer them full benefits as well as profit sharing. To offset the costs, the restaurant would raise prices by 10 to 20 percent.

It is a flawed model. Sure it may work for the restaurant, but not in the long run. The service industry takes into consideration a few things, how much they like their job and feel appreciated at it. Also, they take into account how much money they make. Look at some of the high end restaurants in Cali, NY, and DC. Some servers make close to $100k or over. That practically eliminates their need for health insurance and benefits because they can pay for it out of pocket. Also, how much do you think they actually declare. I'm sure some people say this will work, and you could look on it on the flip side and in order for that to work the establishment would really need to thrive and be doing very well. I don't think many employees would be retained that long even if it was to work and do all right. Just my two cents.

kneifl
 

PAChicky

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The Starbucks at our local Target will not allow you to tip them. If they accept a tip they get fired. The girl told us that since the Starbucks is inside Target they are considered Target employees and can not accept tips.
 
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