More and more restaurants are abandoning the tip system: pros and cons

Photo: depositphotos.com

There are a growing number of restaurants in the US that use the no-tip model, which has become the norm in the country. However, there are restaurants in which this model did not take root, and they abandoned the experiment.

“First and foremost, we would like to match our employees' pay,” said Andy Fortung, owner of Le Pigeon restaurant in Portland, Oregon, which adopted the no-tip model back in June.

Le Pigeon increased prices by an average of 20% and now compensates employees with a basic salary and percentages of sales of food and beverages. Cooks, dishwashers and other staff outside the hall received a slight salary increase, and the waiters, bartenders and other staff in the hall receive a little more.

“The staff at our restaurants are well-trained, smart and passionate,” Fortang said. “So it’s only fair that they are paid for their work rather than tipping or not tipping someone.”

Some restaurant owners saw the no-tip model as one of the system's downsides. Arano Adams, who owns Farm Spirit in Portland, says the new model creates a strange relationship between customer and server. He hopes he can continue raising wages so his employees can support their families and buy homes.

Because of the tips, the salary of the restaurant staff differs to a great extent. Researchers at Cornell University and Ohio State University found that in prestigious restaurants, the average weekly salaries of employees in the hall and outside the hall differ by 29-80%. In good restaurants and bars, where the biggest gap, they differ significantly: $ 792 vs. $ 441.

Several famous Portland restaurants have announced plans to adopt a model this summer based on the success of restaurants in Brooklyn and Los Angeles.

But Kurt Huffman has a different opinion about the system he used in a couple of his restaurants in Portland. He said that it was a mistake when he saw the client actively giving a well-deserved tip to the waiter, and he had to refuse them.

After his institution introduced a tip for tips, the average salary in the hall increased from $ 18 per hour to more than $ 30 per hour, and the service improved. Huffman also raised salaries for employees outside the hall.

Garrett Schumacher worked as a bartender at Loyal Legion before and after the introduction of the model, said that at first he supported innovations. This provided a steady salary and helped raise the salaries of staff in the kitchen. But he himself received much less.

“While this is a noble experiment, I don’t know if we’re ready for it,” he said.

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