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Pros and Cons of Non-Tipping Restaurant

Just because it’s been done since the inception of the industry doesn’t mean that the system is right, just, or equitable.  Every American restaurant-goer has been trained to treat the tip as part of every restaurant meal, but there’s at least one restaurant who’s changing the system.

A restaurant in Philly, the Girard Brasserie and Bruncherie, has given up the tip system to treat all of their employees like office workers. People are given a reasonable hourly wage, health insurance, sick time, and vacation days.

The system that’s in place right now has tipped worker’s wages set at $2.13 an hour, a figure which hasn’t changed in over 25 years.  When the restaurant kept track of the tips, they found their average worker was paid around $8.25 an hour.

There are pros and cons to the system.

Pros:

  • On ‘off’ days, workers are still guaranteed a reasonable wage.  Getting people to work days and nights in this restaurant might not be like pulling teeth.
  • Health insurance was previously not offered to tipped employees.  Having health insurance available keeps workers healthy and able to work.
  • Paid sick leave wasn’t offered to tipped employees.  Now workers don’t have to fear as much loss if they’re sick.

Cons:

  • Tipped employees have the potential to make quite a lot more than the state mandated wage.  At the more expensive restaurants, the mandatory 10-20% can yield up to $20-30 an hour for a busy night.
  • The prices of dishes at this restaurant have been changed to reflect the offering of health insurance, paid sick days, and vacation time.

When running a restaurant, there are several factors to consider, including restaurant supplies, labor costs, and more.  The jury’s still out on whether this system will take hold and revolutionize the industry, but it seems to be working out well.

No-Tip Restaurant Offers Food For Thought On Pay, Benefits

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2015-01-27 00:00:00
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