Restaurant Eliminates Tips, Gives Employees $35,000 a Year (profit, owner, work)

[L210]

According to Next Pittsburgh, full-time employees will be paid a base salary of $35,000 a year and will be given health care and 500 shares in the company. Employees will be asked to work a maximum of 40 to 44 hours per week, will have two days and one night off a week, and will receive 10 paid vacation days per year...Unlike other restaurants that have eliminated tipping, Bar Marco will not be adding in a service fee or raising their prices. Instead, the co-owners are hoping to grow revenue by expanding their menu, increasing the number of covers they do in their wine room, and upping the number of events they host.

Restaurant Eliminates Tips, Gives Employees $35,000 a Year

[revelated]

Originally Posted by L210

Restaurant Eliminates Tips, Gives Employees $35,000 a Year

Good luck to them. They'll likely have to raise prices though, because that's a very iffy model to base this on.

There's got to be something that encourages more customers; business expansion or otherwise.

[MrRational]

Good for them but the details in the fine print still matter.

The biggest issue is that MOST front staff will never get near 40-44 hrs per week.
Most are students and such working 3 or 4 shifts of about 6hrs each.

Most of the others should NEVER have been on a tip base to begin with.

[joe from dayton]

I think it will be interesting to see how/where this goes.

[jwiley]

I have a feeling the restaurant is expecting this announcement to bring in more customers to help them balance the costs, the problem is that I do not see this kind of stuff driving business.

Fact is I prefer to tip my bartenders and waitstaff, if they provide good service than they deserve every penny I give them, if the service is terrible than I have the choice to cut that tip.

I also have a feeling they think they will attract better quality employees, but the best wait staff with not work for that type of salary, I know many waitresses that made $40K a year working 3 or 4 nights a week at decent restaurants. They have no interest in taking a paycut to work more hours.

[mkpunk]

I have a feeling the restaurant is an upscale one which it kind of does but there is no proof. The other restaurant that did was called Bistro Girard. I will let you decide if that one is or not...

[Pitt Chick]

Originally Posted by MrRational

Most are students and such working 3 or 4 shifts of about 6hrs each.

???

Have you been there?

I have, and I see no reason why you would say that!

Even the article states that there are only a handful of part-time college students.

[theluckygal]

I hate tipping. All restaurants need to eliminate it & pay their employees atleast minimum wages. I prefer fast food, cafe or just cooking at home. Only few high end restaurants where they are serving speciality dishes & wines, should have tipping but now even small restaurants with mediocre food & self service buffets expect tipping. Just do away with servers completely. You should be paid by the hour wherever you work. Dont try to squeeze more money out of the customers. There is so much competition in restaurant business & the owner should be happy the customer chose to dine there. We are already paying sales tax on our food & i don't want to pay more than that. I will refill my own water. Thank you very much.

[s1alker]

There are number of restaurants in my area that have "no tipping required" signs. But these are family run businesses that don't hire any outside help. Restaurants run on very slim profit margins and would probably raise prices considerably if tips were eliminated.

[Malloric]

Doesn't look that upscale. It's not a full restaurant though, very limited menu that helps keep costs down.