Restaurant wage increase pragmatism? - Increase prices / Nix tips.

[Trausti]

http://www.seattletimes.com/business/economy/ivars-to-raise-restaurant-workers-wages-to-15-right-away/

On Wednesday, Ivar’s will raise the wages of about 100 employees who make less than $15 at its sit-down restaurant Ivar’s Salmon House, at the north end of Lake Union.

Those servers, bussers, dishwashers and others will see an increase in their hourly pay to a flat $15. They will not, however, get any tips because the restaurant will now tell customers they do not need to tip. To make up for that, the restaurant will share its menu-price increases with the employees. Ivar’s management expects that, under the new system, its hourly staff’s annual pay will end up being the same as, or higher than, what they earned last year.​

The same system will go into effect at Ivar’s downtown Acres of Clams restaurant when it reopens in July. (Acres of Clams, on the waterfront, is temporarily closed for the Seattle seawall-replacement work.)

In addition, Ivar’s will increase the pay of minimum-wage workers at its more than 50 quick-service seafood bars and stadium locations to $11 — and not just in Seattle, where the law will require it.

So to the customer, the price increase is offset by not tipping. To the employee, the lack of tips is offset by the increased wage and a "share of menu-price increases." This only applies to the sit-down restaurants, apparently. The incentive for good service might be affected. Or not. The "tips" will now be absorbed into the wage, and thus is reported as increased income to the IRS (if it hadn't been before).

 

[bilby]

Waitstaff here are paid well (the minimum wage for a Food and Beverage Attendant, grade 3, which covers most waitstaff, is $18.64/hr; Grade 1, which applies to people whose only duties are bussing tables and cleaning, is $17.35/hr (source)), and tipping is not common, nor expected.

The Australian national minimum wage of $16.87 does not apply to those workers who are covered under the Restaurant Industry Award 2010, and for whom the award stipulates a higher hourly pay than the national minimum.

Customer Service doesn't seem to be particularly poor, although customers who are used to getting away with being arseholes to the staff would probably find their dining experience less pleasant - this IMO is more than offset by the more pleasant experience that the reduction in such behaviour provides for the staff and for the rest of the customers.

The only people who lose out under this arrangement as far as I can see are the wannabe slave owners who get pleasure from making the staff bow and scrape.

Whether the US can move to such a model, given how ingrained the tipping culture has become over there, remains to be seen; But certainly it works well here.

 

[Canard DuJour]

http://www.seattletimes.com/business/economy/ivars-to-raise-restaurant-workers-wages-to-15-right-away/

On Wednesday, Ivar’s will raise the wages of about 100 employees who make less than $15 at its sit-down restaurant Ivar’s Salmon House, at the north end of Lake Union.

Those servers, bussers, dishwashers and others will see an increase in their hourly pay to a flat $15. They will not, however, get any tips because the restaurant will now tell customers they do not need to tip. To make up for that, the restaurant will share its menu-price increases with the employees. Ivar’s management expects that, under the new system, its hourly staff’s annual pay will end up being the same as, or higher than, what they earned last year.​

The same system will go into effect at Ivar’s downtown Acres of Clams restaurant when it reopens in July. (Acres of Clams, on the waterfront, is temporarily closed for the Seattle seawall-replacement work.)

In addition, Ivar’s will increase the pay of minimum-wage workers at its more than 50 quick-service seafood bars and stadium locations to $11 — and not just in Seattle, where the law will require it.

So to the customer, the price increase is offset by not tipping. To the employee, the lack of tips is offset by the increased wage and a "share of menu-price increases." This only applies to the sit-down restaurants, apparently. The incentive for good service might be affected. Or not. The "tips" will now be absorbed into the wage, and thus is reported as increased income to the IRS (if it hadn't been before).

GOOD. I hate and detest the whole tipping thing and would far rather have the full price displayed up front. I am also not a fucking cash dispenser and rarely have the right change. I'd be far more inclined to eat there. And, were I an employee, I'd far rather have the wage up front than part of it being charity contingent on the whims of gawd-knows-who.

Also, this :

They will not, however, get any tips because the restaurant will now tell customers they do not need to tip.

is horseshit. People don't tip because they've been given permission to do so by the restaurant.

 

[Metaphor]

I doubt the U.S. tipping culture will change any time soon. I don't tip the supermarket checkout operator, because I expect the cost of staff (and every other cost) is built in to the price of groceries. Nor is it right that the livelihood of a waiter ought be dependent on the whims and prejudices and moods of diners.

 

[arkirk]

I doubt the U.S. tipping culture will change any time soon. I don't tip the supermarket checkout operator, because I expect the cost of staff (and every other cost) is built in to the price of groceries. Nor is it right that the livelihood of a waiter ought be dependent on the whims and prejudices and moods of diners.

I don't tip my supermarket checkout operator because it is a MACHINE. I don't tip the waitresses because I can't afford to eat out. The few times I do however, I leave a tip I can afford. I personally don't think there is anything wrong with a customer giving someone doing a job for them a tip if the customer is exceptionally pleased with the work. I used to work in a paint store and I did a lot of close color matching for painters. If they were impressed with the work, they often would give me a tip. I also got tips for job referrals. The job didn't pay much but it became a lot nicer when there were tips to be had and I was always glad to get one. I don't think that will ever change. It is called a gratuity. Many of my customers were struggling contractors and I had no trouble accepting when they could not tip me. Just saying whenever there is a job that involves service, you are going to find tipping going on. The idea of prohibiting it is ludicrous.

Tips should not make up the bulk of a server of any kind's income. That is the case today for almost all restaurant personnel. It is a hard business and things like McDonalds makes it even harder....no pay, and I would venture to say...no tips.

 

[Metaphor]

I doubt the U.S. tipping culture will change any time soon. I don't tip the supermarket checkout operator, because I expect the cost of staff (and every other cost) is built in to the price of groceries. Nor is it right that the livelihood of a waiter ought be dependent on the whims and prejudices and moods of diners.

I don't tip my supermarket checkout operator because it is a MACHINE. I don't tip the waitresses because I can't afford to eat out. The few times I do however, I leave a tip I can afford. I personally don't think there is anything wrong with a customer giving someone doing a job for them a tip if the customer is exceptionally pleased with the work. I used to work in a paint store and I did a lot of close color matching for painters. If they were impressed with the work, they often would give me a tip. I also got tips for job referrals. The job didn't pay much but it became a lot nicer when there were tips to be had and I was always glad to get one. I don't think that will ever change. It is called a gratuity. Many of my customers were struggling contractors and I had no trouble accepting when they could not tip me. Just saying whenever there is a job that involves service, you are going to find tipping going on. The idea of prohibiting it is ludicrous.

Tips should not make up the bulk of a server of any kind's income. That is the case today for almost all restaurant personnel. It is a hard business and things like McDonalds makes it even harder....no pay, and I would venture to say...no tips.

If they were paid decently, they wouldn't need tips.

 

[ZiprHead]

My wife spent the first ten years of her working life working as a waitress in a Chinese restaurant. I know how hard they work. I always try to tip well.

 

[Bronzeage]

I doubt the U.S. tipping culture will change any time soon. I don't tip the supermarket checkout operator, because I expect the cost of staff (and every other cost) is built in to the price of groceries. Nor is it right that the livelihood of a waiter ought be dependent on the whims and prejudices and moods of diners.

In the days when grocery stores employed young men to bag the groceries and carry them to your car, it was common to tip the bagboy. One large chain actually had an advertising campaign with the slogan, "We hire freeloaders," which told their customers that the bagboys did not accept tips.

That is one occupation which no longer exists, but I don't think tipping killed it.

Because of our schedule, there are weeks when my wife and I eat in restaurants 3 or 4 times a week. We always tip in accordance with the style of service. If I take my meal from across a counter and walk to the table with it, there's no tip. The price is what it is. If I get to sit on my ass while someone else makes certain my food is brought to me hot and my glass is always full, I don't mind paying over the menu price. That's why a chose a sit down dinner over fast food, even if both provide a table.

It's my choice. If there is a problem with the service, it is seldom with my server. I'll tip my customary 20% and take my complaint to the manager.

Side note: One of the stranger vestiges of segregation in the southern USA is the persistence of "predominantly black colleges." There are two large university campuses in my city, LSU and SU. One is predominantly black and the other is not. I have a friend who for many years managed various off campus bars and dance clubs. He said the worst thing that can happen to a campus bar is to become popular with SU students, because they don't tip. This means you can't keep good bartenders and wait staff, which is critical in a high volume bar.

My friend explained, it's a cultural thing. They see tipping as a paternalistic(plantation) thing and don't feel any need to tip someone they see as an equal and actually see it as an insult. It only takes a week of poor tips and your best staff will move on. I asked him what a manager would do. As bad as poor tips might be, getting called out for racial discrimination is the kiss of death for a business. He said it was simple. Just cover at the door. SU students don't tip and they won't pay a cover, either.

 

[Juma]

Tips are bribes

 

[TV and credit cards]

I don't like this if it ends up being a wash for the employees or is so insignificant as to make no discernible difference in the employees quality of life. I would rather the prices just go up and nothing be said from management.

There will be no separate line for “tips” on customers’ bills, and the manager will come to each table to explain the new no-tipping policy, Donegan said.

Customers can still tip if they want to but the restaurant will not require or encourage it.

You don't need to come to my table and explain anything. If I don't like your prices, I'll leave. If I stay, the server will get a tip of five dollars unless there is reason to alter the amount. For me, this extends beyond restaurants. If you're a worker-bee and you do your job for whatever service you're providing, you get tipped. I'll even put a dollar in the jar at walk-up restaurants on occasion if you can manage clean clothes and keep your teen attitude in check. The freaky chicks at Chipotle are always good for two dollars.

 

[James Brown]

You don't need to come to my table and explain anything. If I don't like your prices, I'll leave. If I stay, the server will get a tip of five dollars unless there is reason to alter the amount.

Do you only tip the server if he or she is handling food?

I work in Customer Service, and have been complimented for my efforts, but not once has any customer ever given me five dollars. But then, my manager doesn't cut my wage to the bone on the theory that I'll work harder for tips.

 

[ksen]

If tips are so awesome at getting better performance out of employees why don't we pay CEO's with tips?

 

[Trausti]

If tips are so awesome at getting better performance out of employees why don't we pay CEO's with tips?

It's called stock options.

 

[Trausti]

I don't like this if it ends up being a wash for the employees or is so insignificant as to make no discernible difference in the employees quality of life. I would rather the prices just go up and nothing be said from management.

I think you'd be correct. For the servers this will kinda suck. With tips a server can increase take-home income significantly - 10+ tables an hour, average $4-$6 tip, plus wage. Not bad. That the restaurant would share the price increases with employees is a bit too vague to inspire confidence. But I don't imagine that the restaurant could just increase prices without doing something to mitigate customer loss.

 

[Malintent]

Tips are bribes

for what? leaving the restaurant, free of dirty looks?

 

[Juma]

Tips are bribes

for what? leaving the restaurant, free of dirty looks?

Better service.

 

[Bronzeage]

for what? leaving the restaurant, free of dirty looks?

Better service.

What better service is worth might be a good question, but since the tip is determined after the service is given, it really can't be called a "bribe."

Even more, in place where tipping is customary, it's part of a working person's compensation. Those who don't tip, are cheats. They have happily entered a restaurant where the compensation system for workers is well understood, but with no intention keeping their half of the obligation.

Whether this is a contempt for working people, or some other reason, I cannot say. I can say, I have no patience to listen to the moral or philosophical obfuscations they make to justify this act of petty miserliness.

If a person objects to tipping, there are many food vendors who are happy to toss a bag through a window. No tip is expected. Serving and cleanup are one's own responsibility, assuming this is a person who cleans up their own mess and doesn't leave it for the menial worker who sweeps the parking lot.

 

[Juma]

Better service.

What better service is worth might be a good question, but since the tip is determined after the service is given, it really can't be called a "bribe."

Even more, in place where tipping is customary, it's part of a working person's compensation. Those who don't tip, are cheats. They have happily entered a restaurant where the compensation system for workers is well understood, but with no intention keeping their half of the obligation.

Whether this is a contempt for working people, or some other reason, I cannot say. I can say, I have no patience to listen to the moral or philosophical obfuscations they make to justify this act of petty miserliness.

If a person objects to tipping, there are many food vendors who are happy to toss a bag through a window. No tip is expected. Serving and cleanup are one's own responsibility, assuming this is a person who cleans up their own mess and doesn't leave it for the menial worker who sweeps the parking lot.

Yeah, just dig your head in the sand. Dig deep.

 

[Nice Squirrel]

In the days when grocery stores employed young men to bag the groceries and carry them to your car, it was common to tip the bagboy. One large chain actually had an advertising campaign with the slogan, "We hire freeloaders," which told their customers that the bagboys did not accept tips.

That is one occupation which no longer exists, but I don't think tipping killed it.

Then who carried my groceries to my car last night? -- Although, it might explain the bruises and the inability to sit down comfortably when I woke up this morning.

 

[TV and credit cards]

You don't need to come to my table and explain anything. If I don't like your prices, I'll leave. If I stay, the server will get a tip of five dollars unless there is reason to alter the amount.

Do you only tip the server if he or she is handling food?

I work in Customer Service, and have been complimented for my efforts, but not once has any customer ever given me five dollars. But then, my manager doesn't cut my wage to the bone on the theory that I'll work harder for tips.

Unless I misunderstand you, I suppose the answer would be yes. I'm not likely to see a food server otherwise. If you refer to the rest of the restaurant staff, my assumption is they are compensated IAW the restaurant's policy, be it a different pay rate or a pooling of the tips.

I'll tip anyone busting their ass for what I perceive to be a low wage. It's all relative. One man's pittance is another man's plenty. I think one of the best things a person can do with money is help others and/or make them happy. I worked at car washes when I was a teen. We worked our asses off on a sunny Saturday in winter, and for minimum wage. I mean, we worked our asses off. 1000 cars in eight hours. We weren't suppose to take tips unless the customer insisted. It felt good to know some people weren't looking past you, the work you did. I'd think about the tips and say: "Hey, that's enough for lunch." or: "There's my beer money." Happy.
I don't think I value money the way most do. Perhaps some would see it as charity. It helps. A little makes you happy. A lot makes you miserable.