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This Kentucky Restaurant’s New ‘No Tipping’ Policy is Genius
B101.7 ^ | 06/09/2014 | By Meg Summers

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!



TOPICS: Business/Economy; Food; Local News
KEYWORDS: kentucky; tipping
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To: Wiser now

I would think the incentive to continue providing good service after taking the order is keeping his/her job. If service is bad, mgmt will hear about it and a poor waiter would be history.


61 posted on 06/09/2014 2:28:13 PM PDT by EDINVA
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To: FlJoePa

No hope of commissions? It is a commission job, the more you bring to the table, the sale for the prime rib instead of the ribeye etc will add up. Hey do you wish for dessert? An after dinner drink? According to the policy listed the more the server is able to service and sale the more she earns. How is that really worse than the gamble the server has now. A table of 5 guys who had a 100 dollar total, she may make 20% off that. Or maybe she just has a table of stiffs, or they drop 10 or 15% instead. I see so much more motivation there/sarc


62 posted on 06/09/2014 2:28:14 PM PDT by aft_lizard
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To: ansel12

If “fairly new” = for at least a quarter of a century then I suppose you’re right. Of course in the end I don’t understand why people whine so much about tipping. I enjoy it, I like having them also work for me, and I like giving them an “adaboy”.


63 posted on 06/09/2014 2:28:41 PM PDT by discostu (Ladies and gentlemen watch Ruth!)
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To: GeronL

Guess you never worked as a waiter. Either that, or you’re a Brit.


64 posted on 06/09/2014 2:28:48 PM PDT by miss marmelstein (Richard Lives Yet!)
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To: workerbee

Ha, ha, ha!


65 posted on 06/09/2014 2:28:57 PM PDT by caver (Obama: Home of the Whopper)
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To: Responsibility2nd

Seems fine if the wait staff like it. If they don’t they can work elsewhere.

I wouldn’t have liked it. I made more than 20% of gross receipts many years ago.

Really good waiters and waitresses will move on to where they can make more money.


66 posted on 06/09/2014 2:30:10 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: drunknsage; FlJoePa

So how much did you tip your AC repair guy?

You didn’t and don’t even pretend you did.


I’m not FlJoePa but we just replaced our heater and a/c that was a water based system that was no longer being made and couldn’t find parts for. The changeover from that system to the new one cost almost $12,000 and we did tip the guy and every member of his staff that worked at our home for the 3 days it took.

We’d also tipped him when he replaced our hot water heater 4 months prior to this latest time. It might have been what got him over here within 30 minutes of my call.


67 posted on 06/09/2014 2:33:03 PM PDT by leapfrog0202 ("the American presidency is not supposed to be a journey of personal discovery" Sarah Palin)
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To: MWS

Tipping is now an established American custom - despised by cheapskate Europeans who are excoriated on my favorite blog, Waiter Rant.


68 posted on 06/09/2014 2:33:04 PM PDT by miss marmelstein (Richard Lives Yet!)
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To: Responsibility2nd

I think it’s great.

I am a generous tipper. But in large parties, if someone else picks up the tab, I do not know what they tipped. So don’t blame the whole party. Sometimes someone feels “obligated” because of the occasion to pick up the tab, but then sees the bill, freaks out, and cheats the server.

I knew my late FIL was a lousy inconsiderate tipper so I would sneak back to the table and put more cash down...


69 posted on 06/09/2014 2:33:31 PM PDT by Yaelle
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To: Psalm 73; KC_Lion

[ Japan - no tipping allowed.
Good service is assumed - that is their job. ]

They know their kestumas!

It is THEIR privlidge to serve YOU because that is how THEY MAKE THEIR living!


70 posted on 06/09/2014 2:35:23 PM PDT by GraceG
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To: MortMan

A plumber is just an employee like the waitress, and hours of wet and cold is a much bigger reason to slack off when alone and hidden, doing work that will never be seen, than a waitress, who’s every action is short and in plain site, and delivered directly to the customer and in front of the owner.

I have hired people and I would fire one who depended on an artificial, constant fix, to pretend to be a good employee, it is my experience that people are either suited for the work, or not, (in general), I would hire the person first, rather than depend on my customers to turn a sows ear into a silk purse.

Remember that waitresses also have plenty to do in between the dining hours, a lazy, indifferent waitress will not be a good prepper, the owner doesn’t want his waitresses killing his business when serving, nor slacking off when they are prepping.

By the way, you are allowed to tip your plumber, some customers are so into tipping that they do, especially for difficult messy jobs, and after hours work, and weekend work.


71 posted on 06/09/2014 2:35:33 PM PDT by ansel12 ((Ted Cruz and Mike Lee-both of whom sit on the Senate Judiciary Comm as Ginsberg's importance fades)
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To: ansel12; MortMan

If the plumber stinks and doesn’t get the repair done right, I file a complaint with either his boss or the Register of Contractors. They check on what he did - since it is visible - and deal with it.

If a waitress screws things up or is just slow as molasses in winter, complaining only makes me stay longer in a bad situation. It does me no good to find out if she is fired 8 weeks later after the complaints build up.


72 posted on 06/09/2014 2:37:48 PM PDT by Mr Rogers (I sooooo miss America!)
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To: The Unknown Republican

I agree but this is not different than anything else.

If the workers don’t like the terms of employment, then they can work somewhere else.

If the patrons don’t like the prices or the service at a particular restaurant, they can dine somewhere else.

I really do not know why people make such a big deal of these things. Free market principles still apply


73 posted on 06/09/2014 2:37:57 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: leapfrog0202
We’d also tipped him when he replaced our hot water heater 4 months prior to this latest time. It might have been what got him over here within 30 minutes of my call.

I doubt it, for one thing 1 hour service is something plumbers advertise, and if you don't mind saying, what kind of tip did you give him for the water heater, and how big a company is it?

74 posted on 06/09/2014 2:38:56 PM PDT by ansel12 ((Ted Cruz and Mike Lee-both of whom sit on the Senate Judiciary Comm as Ginsberg's importance fades)
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To: Mr Rogers

Read the posts, it had nothing to do with not doing the repair “right”, repairs that almost all home owners will never see.

As that post correctly pointed out “” your plumber has a vastly greater range of service that he can deliver to you based on how he feels about you, or what mood he is in, or what type of man he is, yet you trust him to just do his job well, while you don’t trust us that have been in the food service business to do ours, unless we have the hopes of a bonus, of a tip.””


75 posted on 06/09/2014 2:42:05 PM PDT by ansel12 ((Ted Cruz and Mike Lee-both of whom sit on the Senate Judiciary Comm as Ginsberg's importance fades)
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To: Responsibility2nd

Seems to me that this one awful large incentive for the servers to push turnover. After all you can’t increase your pay without emptying tables as quickly as possible, wear as tips are more dependent on quality of service. Put me in thank you no column.


76 posted on 06/09/2014 2:43:05 PM PDT by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: I want the USA back

I like taxes to be shown as a separate line item on the receipt.

In much of Europe the tax is never shown, it is just included in everything you buy.

It’s better to be constantly reminded how much you are paying in taxes.


77 posted on 06/09/2014 2:43:56 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: Lorianne; miss marmelstein

If free market forces should ever apply, surely having lunch at the diner is one of those places.


78 posted on 06/09/2014 2:44:46 PM PDT by ansel12 ((Ted Cruz and Mike Lee-both of whom sit on the Senate Judiciary Comm as Ginsberg's importance fades)
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To: MortMan

Well - it used to be that way. I was always told to tip based on performance, but have gotten a lot of scoldings over the years for doing just that. Hell it used to be 10% was the average tip, now it’s 15 and 20%. I’ve even had waitresses come up to me as I went out the door to tell me what I left wasn’t enough and been told by members of my party that they would chip in if I was short cash after already putting down 15%.

That being said when I’ve had absolutely stunning service I’ve left a $40 tip on a $20 meal, etc.

I like this myself. Reminds me of Japan where tipping is an insult....it’s interpreted there as the person obviously isn’t good at what they do so likely need some extra help.


79 posted on 06/09/2014 2:45:17 PM PDT by reed13k (For evil to triumph it is only necessary for good men to do nothings)
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To: discostu

They aren’t working for you, and plumbers and everyone else like cash “attaboys” also, since you are eager to dole out money to employees of other people.


80 posted on 06/09/2014 2:47:05 PM PDT by ansel12 ((Ted Cruz and Mike Lee-both of whom sit on the Senate Judiciary Comm as Ginsberg's importance fades)
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