gts
12-27-2014, 06:37 PM
"We are in a competitive industry and we thought this could be a point of differentiation and originality," said owner Bob Conway. "The customer won't feel the whammy at the end of their experience."
He built tax and gratuity into his menu prices when he opened the restaurant at the start of 2014. The wait staff makes either $10 an hour or 20% of sales (whichever is higher) and Conway said his servers average about $16.50 an hour.
These restaurateurs aren't alone in their move to end tipping.
And while it isn't yet widespread, the movement is particularly catching on in many restaurants in major metropolitan areas.
How much should you tip housekeeping? A travel tipping guide
But no-tip policies are still far from the norm, and have a long way to go before becoming widely accepted.
"This will be the most controversial and most discussed movement of the next year," predicted Andrew Freeman, president of restaurant consulting firm AF&Co.
Part of the controversy relates to whether workers will get shorted.
Federal law requires employers to pay tipped workers $2.13 an hour as long as their total compensation (including tips) equals the federal minimum wage of $7.25 an hour. And some states have issued their own minimum wage laws specific to tipped workers.
Holland said getting rid of tips could be bad for some servers. "The workers who are earning more than minimum wage could actually be getting a decrease in their take-home pay if they weren't allowed to get tips," he said
http://money.cnn.com/2014/12/23/luxury/no-tipping-policy/index.html?hpt=hp_t2
He built tax and gratuity into his menu prices when he opened the restaurant at the start of 2014. The wait staff makes either $10 an hour or 20% of sales (whichever is higher) and Conway said his servers average about $16.50 an hour.
These restaurateurs aren't alone in their move to end tipping.
And while it isn't yet widespread, the movement is particularly catching on in many restaurants in major metropolitan areas.
How much should you tip housekeeping? A travel tipping guide
But no-tip policies are still far from the norm, and have a long way to go before becoming widely accepted.
"This will be the most controversial and most discussed movement of the next year," predicted Andrew Freeman, president of restaurant consulting firm AF&Co.
Part of the controversy relates to whether workers will get shorted.
Federal law requires employers to pay tipped workers $2.13 an hour as long as their total compensation (including tips) equals the federal minimum wage of $7.25 an hour. And some states have issued their own minimum wage laws specific to tipped workers.
Holland said getting rid of tips could be bad for some servers. "The workers who are earning more than minimum wage could actually be getting a decrease in their take-home pay if they weren't allowed to get tips," he said
http://money.cnn.com/2014/12/23/luxury/no-tipping-policy/index.html?hpt=hp_t2