Posted on 06/09/2014 1:28:05 PM PDT by Responsibility2nd
A restaurant in Newport, Kentucky is making national headlines putting a ‘no tipping’ policy in effect. Packhouse Meats‘ tipping ban may seem strange, but it’s way more awesome than you think.
The restaurant has ‘No Tipping’ signs posted throughout its facility, and when customers pay by credit card, there is no option to leave a tip on the order receipt. Bob Conway, the owner of Packhouse Meats, revealed in an interview that he’s been inundated with negative reviews on Yelp for what appears to be mistreatment of his servers. A closer look at the new policy reveals that it’s not awful–it’s awesome.
Here’s how it works: severs are paid $10 an hour OR 20% of their individual food sales during their shifts–whichever amount is higher. Anyone who has ever waited tables before knows how rad this policy is. It’s basically a guarantee that you’re going to make good money.
Let’s break it down: if you worked a 5 hour shift and brought in $500 in food sales (which is suuuuuuper easy to do at any busy restaurant; TRUST); if you earn 20% of that, you take home $100–that’s twice the amount you’d make at the rate of $10/hour.
I think Packhouse Meat’s ‘No Tipping’ policy is awesome because it works for the restaurant AND its servers; the servers are motivated to push food sales (which means more $$$ for the restaurant), and the restaurant takes care of its employees with a guarantee that they’ll make a decent wage (which means happy servers).
I also think the ‘No Tipping’ policy is awesome because it eliminates what I call the Jerk Factor. There are few things in life more infuriating than busting it to take care of a table who leaves a chump change tip. You hustle like crazy to make sure these people’s drinks stay refilled, their orders are delivered promptly and accurately, their every need is attended to–all with warmth and courtesy– and they repay you with a $5 tip on a $125 check. Thanks, party of six, you guys must all be greaaaaaat people.
Packhouse Meats has taken the Jerk Factor out of the equation and ensured that their servers get the pay the deserve. Their owner gets an A++ in my book, but what do you think? Is their policy a good idea? Tell me how you feel in the comments below!
If the amount paid to servers, as recorded in W-2 earnings, increases, that increases the costs of the restaurant, which then must pass on this increased cost in the the form of higher meal prices.
So, instead of say $100 for the meal, and leave $20 tipm for a total of $120, let’s say you pay $114 for the meal.
Of course, a restaurant also may find they need to charge, for example, $122 for the meal.
If the customer wishes to big tip the staff they think are best, and small tip those whose service they find wanting, this will cost the customer much more, and, it sounds like the restaurant would basically not allow the staff to individually accept the tips anyway. So, the vote with your tip idea is largely gone.
For the servers, they will no longer be able to short report their tip income; it will all go through the restaurant’s payroll system and ALL be taxable income.
The customers will also find, undoubtedly, a dramatic increase in what the industry calls upselling, where your waiter tries to push more items and more expensive items on you while you’re eating. Many people find upselling very annoying during their meal, though the young and the borish don’t realize it’s being done to them.
There was a time when waiters actually paid the restaurant for the privilege of being a waiter. Labor laws outlawed this practice. The same was true of other jobs like bellboys and delivery boys. They made their living solely from their tips and they must have delivered great service :-)
Then fire Obama.
“They make a fortune on tips here in NYC.”
Well, Miss Marme...let’s hope those waiters stay in NYC. Probably be good if you do too! :)
But one question, is it because the clientele are tipping 30 - 50%, or is it because the prices on the menus are ‘outta this world’?
I was responding to the claim that no waiter in NYC would accept the 20% deal.
I'd wager over half would -- because, as you point out, "some people make more money than others in all occupations".
Many moons ago I ran a Pizza Hut in Ft. Worth Texas, if memory serves me right....labor was about 20 % of the cost of running the place....
So his no tipping plan seems viable...
Dang, and I just spent $100 on a hot Wizard Tip Calculator!
“Nothing is more direct than the boss seeing an indifferent waitress.”
BWAHAHAHAHAHA!!!!!!!!!!!!!!!!!!!
Good luck FINDING the boss in a lot of restaurants! And nothing is more direct than refusing to pay someone yourself!
“If Basking Robbins which is known as a cheerful, happy, place didn’t have tipping, it was pretty strange for you to use them as your example.”
Tipping on a 25 cent ice cream cone vs tipping on a $100 dinner....hmmm...you don’t see a difference? And most BRs are not particularly cheerful, happy places, and the service there is usually no better than adequate. But then, my boss may have understood the business better than most.
“Don’t all business look at costs and then they mark-up accordingly?”
Of course not. They look at the prevailing price of the goods, and determine if they can operate within that price structure.
In theory the “price” has little to do with the cost.
In some markets the seller enjoys a huge percent markup, for his goods.
In other markets, the sellers are glad to dump their goods at a loss today, before a greater loss tomorrow, or worst of all, later no market at any price.
A rare collector car held for years, sells at a price bearing no relation to cost.
Ok I see what you were saying.
I don’t know the NYC scene enough to say for sure.
It could be that an average 20% of gross receipts could be the low end there
Baskin Robbins was your own example.
Waitresses have bosses, I have never worked in or managed a restaurant, that didn’t have someone overseeing the waitresses.
“That would net them $500.00.”
My girlfriend back in 1980 (22 year old) got 600.00 in tips for just Friday and Saturday night in NYC.
At my last job I ate out 10-15 nights per month. I learned to tell which tables would be asking for freebies at the end of their meals.
Since I dined alone, I always listened around me. Sure enough, after the meals had been eaten, the complaints would start rolling in and concessions would be made to those I noted when I was sat. Predictable, I tell you.
When I was in high school I worked at a car wash that had a very prominent “No Tipping” sign. Tons of customers slid us tips.
One day management took down the sign and the tips dried up. Why?
We thought it was people trying to pull a fast one. Beat the system.
Anyway, about two hours into the shift we realized the tips had dried up and we threatened to quit if management didn’t put the sign back up by lunch time. The sign was back up within the hour and the tips started flowing.
I’ll bet the wait staff at this restaurant is cleaning up on tips as well.
What good is a tip jar if no one sees you put money in it? :-)
I see no problem with it. The market will decide if this is a good solution or not. If the customers stop showing up and the cause is determined to be the higher price, then the experiment fails.
On the other hand, if the customers continue to show up and/or the crowd grows, then it is a great idea that will be fully proven if it spreads to other restaurants.
Either way, I think the customer is ultimately still in control.
If you are fine with being forced to pay a set percentage then I’m afraid I will not be able to reason with you. I for one refuse to be told how much I must tip. Make no mistake about it, this scheme is nothing more than forced tipping and it is most certainly baked into the cost of your meal. You may like the thought of that...I don’t.
Don’t worry. I have no plans on moving near you.
NYC has some truly wonderful restaurants. We have some good restaurants in Boston, but NYC is on a completely different level.
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