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Message
Restaurant Sees Profits Triple After It Ditches Tipping
Posted on 6/18/15 at 4:30 pm
Posted on 6/18/15 at 4:30 pm
LINK
#BanTipping
quote:
Bobby Fry made headlines earlier this year when his restaurant, Bar Marco, decided to join the small but growing trend of restaurants that have decided to ditch tipping. Entrepreneur decided to check in to see how the restaurant owner was doing, and Fry says the results have been phenomenal. Since getting rid of tipping on April 1, profits have increased from about $3,000 a week to $9,000.
“Our water bill was cut in half, our linen bill was cut in half, our liquor inventory was lean,” Fry told Entrepreneur, crediting it all to greater employee cognizance. Employees have more on the line, too: Bar Marco’s new system cuts them into the profits as well. All workers now get a base salary of at least $35,000—plus health care, paid vacation and 500 shares in the company—but they also get bonuses. Because of his recent financial boom, Fry says salaries could end up between $48,000 and $51,000 this year.
Fry’s take on tipping is simple and logical. “Whether it’s good service or bad service, people tend to tip the same amount,” he said, citing a Cornell professor’s findings. “When you have bad service, you just don’t go back. So in reality, tipping hides how people actually feel.” Plus, Fry says how you pay your employees shows how you feel about your business. “You cannot tell me that your business model relies on paying people below the poverty line,” he said. “You gotta have more pride in your business than that.”
#BanTipping
Posted on 6/18/15 at 4:33 pm to Street Hawk
quote:
Fry says salaries could end up between $48,000 and $51,000 this year.
Sweet Baby Jesus!!
Posted on 6/18/15 at 4:33 pm to Street Hawk
This was one aspect I liked about dining out during my recent trip to Europe. Drop a few euros and you're done.
Posted on 6/18/15 at 4:36 pm to Street Hawk
I like this, especially about the employees owning shares. Make them part of your investment, and they will share the same financial incentives the original stakeholders do.
Posted on 6/18/15 at 4:36 pm to Street Hawk
Just curious, how many of these employees are crying on social media about how it's the customers fault that they don't get paid?
Posted on 6/18/15 at 4:36 pm to Street Hawk
quote:
base salary of at least $35,000
quote:
salaries could end up between $48,000 and $51,000 this year
Wow.
Posted on 6/18/15 at 4:37 pm to Street Hawk
quote:
Fry says salaries could end up between $48,000 and $51,000 this year.
Lol. 99.999% of restaurant owners would never go for this. Ever.
Posted on 6/18/15 at 4:37 pm to Street Hawk
I assume typical wait staff salaries (or overall pay including tips) are between $25k and $35k normally, right? I'm not talking about commanders palace, just normal restaurants.
Posted on 6/18/15 at 4:40 pm to Street Hawk
Hopefully all the other people that expect tips will take notice. People that expect tips have gotten out of control.
You want $20 to cut my hair then expect a tip? Just charge me $23 and be done with it.
You want to charge me $40 per night to park my car in New Orleans then expect a freaking tip to park it and deliver it? Charge me $45 and give some to the parking guys.
You want $20 to cut my hair then expect a tip? Just charge me $23 and be done with it.
You want to charge me $40 per night to park my car in New Orleans then expect a freaking tip to park it and deliver it? Charge me $45 and give some to the parking guys.
Posted on 6/18/15 at 4:41 pm to Street Hawk
to be fair, the place is a wine bar that serves some food. not exactly a true restaurant. with no tips comes higher dish prices. after looking at their website, which is pretty horrible and cheap looking, the prices are very high.
with all this money he is making, he should invest in a new website because its literally the worst ive ever seen for a bar/restaurant
https://www.barmarcopgh.com/
with all this money he is making, he should invest in a new website because its literally the worst ive ever seen for a bar/restaurant
https://www.barmarcopgh.com/
Posted on 6/18/15 at 4:42 pm to Fun Bunch
Their salaries are only gonna get that high bc of tripling his profits.
He can triple his profits and then pay them 1.5x as much to give them incentive to work hard.
Win win for both parties
He can triple his profits and then pay them 1.5x as much to give them incentive to work hard.
Win win for both parties
Posted on 6/18/15 at 4:43 pm to captainahab
quote:
You want $20 to cut my hair then expect a tip? Just charge me $23 and be done with it.
I get pissed off at all of the tipping out there, but your barber/stylist? Yeesh. And 3 dollars?? lol.
Posted on 6/18/15 at 4:43 pm to Street Hawk
Doesn't mention anything about food or alcohol prices going up... Which I bet they did...
This post was edited on 6/18/15 at 4:47 pm
Posted on 6/18/15 at 4:47 pm to Street Hawk
A lot of it makes sense, but there is a risk that this kind of system only works here as a novelty.
Ever been to a restaurant in a country where tipping is not customary? The waitstaff is horrible and inattentive because you have nothing to hang over their heads. They have no real incentive to please you so they treat you as an inconvenience. Not saying this will definitely happen everywhere, but certain restaurants doing it on a small scale does not necessarily reflect a whole trend. We always talk about how the tipping model affects restaurant profits and pay for the waitstaff, but it may have a significant impact on quality of service.
**crappy qualifier** I'm not sure of any of this and have done no research to back it up outside of my personal experience of dining in other countries. I just think it's a factor to consider.
Ever been to a restaurant in a country where tipping is not customary? The waitstaff is horrible and inattentive because you have nothing to hang over their heads. They have no real incentive to please you so they treat you as an inconvenience. Not saying this will definitely happen everywhere, but certain restaurants doing it on a small scale does not necessarily reflect a whole trend. We always talk about how the tipping model affects restaurant profits and pay for the waitstaff, but it may have a significant impact on quality of service.
**crappy qualifier** I'm not sure of any of this and have done no research to back it up outside of my personal experience of dining in other countries. I just think it's a factor to consider.
Posted on 6/18/15 at 4:55 pm to Street Hawk
Not surprised. Tipping needs to stop, especially because some people don't tip.
Posted on 6/18/15 at 5:02 pm to Jamohn
quote:
Ever been to a restaurant in a country where tipping is not customary? The waitstaff is horrible and inattentive because you have nothing to hang over their heads. They have no real incentive to please you so they treat you as an inconvenience. Not saying this will definitely happen everywhere, but certain resta
Do these restaurants have profit sharing?
Posted on 6/18/15 at 5:04 pm to Jamohn
quote:
The waitstaff is horrible and inattentive because you have nothing to hang over their heads. They have no real incentive to please you so they treat you as an inconvenience.
That's where I think this is different. If they have shares in the company, they are financially tied to the businesses performance, for better or worse.
Posted on 6/18/15 at 5:05 pm to ksayetiger
quote:I doubt it.
Do these restaurants have profit sharing?
But how many restaurants will have the space in their profit margins to pay higher waiter salaries and implement profit sharing? Like I said, I think it works more as a novelty than a sustainable trend, but that's just my uninformed opinion.
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