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An unjust tax that should never have been levied!!

28 posts in this topic

5 hours ago, ncbirdfan said:

North Carolina labor law allows tipped employees to be paid a lower cash wage than the standard North Carolina minimum wage by their employers, as up to $5.12 in tips earned per hour can be deducted from their wage as a "Tip Credit". This means that, with the maximum tip credit taken, tipped employees must be paid a cash wage of at least $2.13 per hour, for a total minimum compensation of $7.25 per hour (including tips).

http://money.cnn.com/2016/05/12/pf/joes-crab-shack-ends-no-tipping-policy/index.html

Apparently, the no-tipping test at Joe's Crab Shack isn't working out.

"The casual seafood chain announced in November that it had been trying out a no-tipping model in 18 of its restaurants across the country since August.  But less than a year later, the company is moving back to the standard gratuity model in 14 of the test locations.  "

"Prices at the pilot restaurants increased to cover the new labor costs. The pilot restaurants lost an average of 8-10% of customers during the test run. "We tried it for quite a while and we tried communicating it different ways," Merritt said."

Another big name restaurant is giving up on tipping, and will instead pay its servers $27 an hour. http://money.cnn.com/2015/12/23/pf/meadowsweet-no-tipping/index.html?iid=EL

"Meadowsweet, a Michelin-rated restaurant in Brooklyn, will eliminate tips starting January 1 and raise menu prices 16% to 20% to make up for the change in customers' bills.

But even more noteworthy: Servers will make $27 an hour. Hourly workers in the kitchen will continue to earn around $13 an hour (plus overtime) at first and could gradually make more.  "The goal is over the next couple of years, we can raise the income of every back-of-the-house employee," said Stephanie Lempert, general manager and owner of Meadowsweet."

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17 minutes ago, workerbee said:

http://money.cnn.com/2016/05/12/pf/joes-crab-shack-ends-no-tipping-policy/index.html

Apparently, the no-tipping test at Joe's Crab Shack isn't working out.

"The casual seafood chain announced in November that it had been trying out a no-tipping model in 18 of its restaurants across the country since August.  But less than a year later, the company is moving back to the standard gratuity model in 14 of the test locations.  "

"Prices at the pilot restaurants increased to cover the new labor costs. The pilot restaurants lost an average of 8-10% of customers during the test run. "We tried it for quite a while and we tried communicating it different ways," Merritt said."

Another big name restaurant is giving up on tipping, and will instead pay its servers $27 an hour. http://money.cnn.com/2015/12/23/pf/meadowsweet-no-tipping/index.html?iid=EL

"Meadowsweet, a Michelin-rated restaurant in Brooklyn, will eliminate tips starting January 1 and raise menu prices 16% to 20% to make up for the change in customers' bills.

But even more noteworthy: Servers will make $27 an hour. Hourly workers in the kitchen will continue to earn around $13 an hour (plus overtime) at first and could gradually make more.  "The goal is over the next couple of years, we can raise the income of every back-of-the-house employee," said Stephanie Lempert, general manager and owner of Meadowsweet."

It's funny that when we were in Europe we would tip and get the weirdest looks. Apparently tipping is an American thing.

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If the 8% - 10% of customer lost were the ones who don't tip, the restaurant's probably better off without the cheapskates! :)

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