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These Waiters Don’t Make Tips. Instead They Make $15 An Hour.

Posted on 6/10/14 at 1:32 pm
Posted by carbola
Bloomington, IN
Member since Aug 2010
4308 posts
Posted on 6/10/14 at 1:32 pm
LINK

I think this is interesting and would be cool to see more people following this method. What I *do* think is funny is that liberals are promoting this on the "It's a livable wage" line, whereas all I see it as trying to recruit and keep talent. This would be better than mandating a "Minimum Wage Increase" This is actual inter business competition forcing higher wages while altering the sales plan to still have people come in (no tipping).

quote:

Servers at the restaurant make a minimum wage of $10 an hour. But they can also make 20 percent of their sales in commission — which is based on sales volume, the quality of service, and a few other factors — if it’s higher than that wage. This means that, on average, the servers are making $15 an hour. “Ten dollars an hour becomes a safety net,” explained owner Bob Conway. “When you come in and it’s dead, or you’re working through the middle of the afternoon and we don’t really have any business,” that $10 might kick in.


quote:

The new model was “done to protect the servers, and by protecting the servers, reduce turnover,” he said. Since Packhouse opened, there hasn’t been any turnover that wasn’t due to firing someone for failing to meet the requirements of the job. “None of the servers are leaving because they’re not making enough money,” he added. That’s good for the restaurant’s bottom line: turnover can cost as much as 20 percent of a workers’ pay. It has also raised quality. “If we’re paying our servers well, we can get high-quality servers, and if you have high-quality servers then the quality of service is better,” he said. “Generally I think that’s what we’re finding.”


quote:

There have been some tradeoffs. While ultimately the amount of money a customer spends is the same, the price of food has had to rise to cover the higher cost of labor, although it’s not a full 20 percent increase. For his servers, they no longer leave with an untaxed wad of cash in their pockets at the end of their shifts, nor can they look forward to blockbuster tips.
Posted by theunknownknight
Baton Rouge
Member since Sep 2005
57212 posts
Posted on 6/10/14 at 1:33 pm to
so in summary

1. Food will be more expensive
2. Service will suck more
Posted by mmcgrath
Indianapolis
Member since Feb 2010
35351 posts
Posted on 6/10/14 at 1:38 pm to
quote:

I think this is interesting and would be cool to see more people following this method. What I *do* think is funny is that liberals are promoting this on the "It's a livable wage" line, whereas all I see it as trying to recruit and keep talent. This would be better than mandating a "Minimum Wage Increase" This is actual inter business competition forcing higher wages while altering the sales plan to still have people come in (no tipping).
I love the business model, but it has a lot more to do with tipping being an outdated model then an argument against minimum wage.
Posted by seawolf06
NH
Member since Oct 2007
8159 posts
Posted on 6/10/14 at 1:39 pm to
I don't think it will be that much difference. Waiters cater more to the higher paying tables under the assumption that they will tip a % of the total bill. Under this system, that is pretty much guaranteed, but nothing will really change. They will still give better service to bigger spenders.
Posted by goldennugget
Hating Masks
Member since Jul 2013
24514 posts
Posted on 6/10/14 at 1:52 pm to
I wait tables on the side and I'd rather make what I make at the moment: $4.58 an hour plus tips, rather than a flat $10 or $15 an hour wage.

Last night I made over $20 an hour.

It allows me to get more hours since our management doesn't have to worry about labor costs as much, and it keeps menu prices low so more customers come in.
Posted by dcrews
Houston, TX
Member since Feb 2011
30145 posts
Posted on 6/10/14 at 2:32 pm to
quote:

$4.58 an hour plus tips


$4.58?

Min wage for servers when I waited tables was $2.15.

Damn kids ruining our country
Posted by VaBamaMan
North AL
Member since Apr 2013
7649 posts
Posted on 6/10/14 at 2:35 pm to
quote:

$2.15.


still is.
Posted by petar
Miami
Member since May 2009
5989 posts
Posted on 6/10/14 at 2:37 pm to
quote:

Min wage for servers when I waited tables was $2.15


dont think its much above that in LA still. I think i was somewhere around 2.65 or so about 2/3 years back.

I wouldn't want the switch over either. I think it would lower quality of service (either through servers or the restaurant being under staffed)
Posted by YipSkiddlyDooo
Member since Apr 2013
3631 posts
Posted on 6/10/14 at 3:42 pm to
quote:

still is


Not in WA and 5 other states where they pay servers the full state minimum wage.
Posted by goldennugget
Hating Masks
Member since Jul 2013
24514 posts
Posted on 6/10/14 at 3:45 pm to
quote:

$4.58?

Min wage for servers when I waited tables was $2.15.

Damn kids ruining our country


I get $4.58 in Iowa
Posted by rbWarEagle
Member since Nov 2009
49999 posts
Posted on 6/10/14 at 3:49 pm to
Mine was around $4.40 and I made way more than $15/hour.
Posted by dante
Kingwood, TX
Member since Mar 2006
10669 posts
Posted on 6/10/14 at 3:52 pm to
I would think this would be advantageous for those waiters that tend to work the lunch crowd rather than the dinner crowd. The dinner staff generally make more money because of bigger crowds and alcohol.
Posted by GeauxxxTigers23
TeamBunt General Manager
Member since Apr 2013
62514 posts
Posted on 6/10/14 at 3:54 pm to
Sounds like a shitty deal for the waiters.
Posted by La Place Mike
West Florida Republic
Member since Jan 2004
28778 posts
Posted on 6/10/14 at 4:45 pm to
quote:

While ultimately the amount of money a customer spends is the same, the price of food has had to rise to cover the higher cost of labor, although it’s not a full 20 percent increase.
Huh?
Posted by meansonny
ATL
Member since Sep 2012
25497 posts
Posted on 6/10/14 at 6:26 pm to
This sounds like something that a Waffle House waiter would like. Low ticket totals and potential low quality tippers would make the $15/hour more attractive (as someone else mentioned... maybe a breakfast/lunch crowd situation).

Outside of that, I don't know why a server would want to switch?
It's not uncommon to make $25 per hour waiting tables.

The issue waiting tables is typically a limited set of hours. Whether it is making $15/hour wage or $25/hour using tips, I don't see the number of restaurant hours for dinner changing. A dinner shift is often at or just over 4 hours.
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