Skip to comments.This Kentucky Restaurant’s New ‘No Tipping’ Policy is Genius
Posted on 06/09/2014 1:28:05 PM PDT by Responsibility2nd
A restaurant in Newport, Kentucky is making national headlines putting a ‘no tipping’ policy in effect. Packhouse Meats‘ tipping ban may seem strange, but it’s way more awesome than you think.
The restaurant has ‘No Tipping’ signs posted throughout its facility, and when customers pay by credit card, there is no option to leave a tip on the order receipt. Bob Conway, the owner of Packhouse Meats, revealed in an interview that he’s been inundated with negative reviews on Yelp for what appears to be mistreatment of his servers. A closer look at the new policy reveals that it’s not awful–it’s awesome.
Here’s how it works: severs are paid $10 an hour OR 20% of their individual food sales during their shifts–whichever amount is higher. Anyone who has ever waited tables before knows how rad this policy is. It’s basically a guarantee that you’re going to make good money.
Let’s break it down: if you worked a 5 hour shift and brought in $500 in food sales (which is suuuuuuper easy to do at any busy restaurant; TRUST); if you earn 20% of that, you take home $100–that’s twice the amount you’d make at the rate of $10/hour.
I think Packhouse Meat’s ‘No Tipping’ policy is awesome because it works for the restaurant AND its servers; the servers are motivated to push food sales (which means more $$$ for the restaurant), and the restaurant takes care of its employees with a guarantee that they’ll make a decent wage (which means happy servers).
I also think the ‘No Tipping’ policy is awesome because it eliminates what I call the Jerk Factor. There are few things in life more infuriating than busting it to take care of a table who leaves a chump change tip. You hustle like crazy to make sure these people’s drinks stay refilled, their orders are delivered promptly and accurately, their every need is attended to–all with warmth and courtesy– and they repay you with a $5 tip on a $125 check. Thanks, party of six, you guys must all be greaaaaaat people.
Packhouse Meats has taken the Jerk Factor out of the equation and ensured that their servers get the pay the deserve. Their owner gets an A++ in my book, but what do you think? Is their policy a good idea? Tell me how you feel in the comments below!
The owners have Packhouse Meats determine that 20 percent of gross receipts will go to waitstaff and they menu price on that basis.
But in 5, 4, 3.... someone here will come along with a negative POV.
I’d be interested as to the relative cost of their menu items...
Of course, you have to take the tip into account when comparing to other restaurants.
Great way not to have any waiters. They make a fortune on tips here in NYC. An absolute fortune. Not one waiter here would agree to this deal.
Where do the interests of the customer fit into the situation? Not trying to be negative, but part of the rationale for tipping is that it puts the customer in a measure of control over the server - the server is putatively rewarded for good service.
If the customers are satisfied, I’d be happy to see this become more common. But if the money to be made for pushing customers through makes service slip, I would not be a long-term customer of the restaurant.
I like tipping. It means the server also works for me, not just the house.
Okay, but if they are making a fortune, then their daily sales must be pretty significant, so the % deal would pay them well also. The information we are missing is whether or not the employer is adding the 20% to the server’s W-2. If so (and I would assume the IRS would require it), then the 20% just became more like 13% or less.
In NYC, some of the tips have skyrocketed to 40%. I’m not joking.
Then let me be negative for you! This is exactly my problem with this and it’s a horrible idea.
Why on earth would any self-respecting conservative give up their freedom to determine what tip they would like to offer? I nearly always tip 20%, but I’ll be damned if I’m going to be required affirmatively to pay for a meal that includes a 20% markup for the server who provides me with crappy service. This is definitely not a consumer focused solution.
Those waiters in NYC you speak of may bring in $2500 in five hours. That would net them $500.00. That's $100 per hour. Plus any additional tips some extra generous diner may give.
Still think those waiters would quit?
And it gets the Infernal Revenue Service out of the restaurant’s and its employee’s hair.
If the servers are paid $10.00 an hour, then why should they receive a tip? Just because they serve food?
I always thought servers were tipped because they only were paid about 2-3 dollars an hour.
That’s pretty impressive. My tax comment would make it even worse of a change for them then.
True, but there are also terrible servers with snotty attitudes and lazy, sloppy work habits. This forces me to tip them the same as the good ones.
I’m suspicious that this is just another way to get more European. Every single damn day in The Guardian there is an editorial on the evils of tipping waiters in America. It’s an obsession with them. Mostly because they are the cheapest SOBs in the world but also they resent the uniqueness of American habits and culture. So I’ll stick with tipping waiters. I enjoy tipping them, in fact.
If they are guaranteed 20% of the food sales, what governs the server’s performance after your order has been taken? If the service from that point forward is poor, the customer is stuck. The server has made his money and has no further incentive to provide good service, unless it is the kind pf place that charges for all drinks.
The Customer can always alert management, and likely that server will be out of a job if they get too many complaints.
It's well known in the restaurant business that minorities are notoriously bad tippers, even NO-tippers while also being some of the most demanding and downright rude patrons. My family has been in the restaurant business for 50 yrs and have experienced it many, many times over the years. It's really weird, it makes you wonder where they learned not to tip from and why?
A policy like this eliminates that problem and should be welcomed by all servers. Other restaurants should adopt this great policy.
It’s been tried (and failed) in every service business imaginable. What happens is the level of service drops dramatically because there is no incentive to provide anything but the bare minimum.
Be sure and tip your plumber rather than depend on his own motivation to do good and honest work, and I can guarantee you that a plumber can make a much bigger difference than a waitress in what he delivers, in terms of “service”.
According the the pro-tipping crowd, minorities must really be treated like scum when they need to eat outside of the home.
Because it corrects the issue of waiters underreporting their earnings to the IRS?
If the plumber expects a tip, in light of the fact that it is NOT a traditionally tipping business, he’s SOL.
So, that’s a nice straw man.
Would you care to try again?
So how much did you tip your AC repair guy?
You didn’t and don’t even pretend you did.
This policy is awesome. I actually waited tables for years and the Blacks, Women, and Euro trash really heart my pocket. TIPS are out dated. Everyone should get prompt service, period. I did not provide excellent service for tips... I did it to keep my job. There is NO OTHER SERVICE INDUSTRY on earth that relies on tips to pay their staff. IT support don’t work off tips, HVAC, Cable repair, they seem to get by just fine.
I currently work in IT and I provide a service. Are you suggesting that the model of paying me a wage is a failure because that is retarded. I always provide above the bare minimum because I want referrals and customer loyalty. The same goes for the restaurant.
So tell us, what do you do for a living? Are you in a service field? If so, how much was your last tip? Do you provide crap service?
We consumers are stuck with crappy service. In our reataurants, our stores and everywhere.
If a waiter or waitress gives you bad service, let the manager know. If the problem is not fixed (immediate discount or free meal the next time in) then let everyone you know what kind of crappy service you received and then never go back.
Oh so its tradition now? Tradition is your argument in support of this.
Get a clue captain strawman.
Which has led many a waiter throughout the years to say, "Dangit, I just got stuck with a bunch of Canadians at my table."
It isn’t a straw man, your plumber has a vastly greater range of service that he can deliver to you based on how he feels about you, or what mood he is in, or what type of man he is, yet you trust him to just do his job well, while you don’t trust us that have been in the food service business to do ours, unless we have the hopes of a bonus, of a tip.
“Because it corrects the issue of waiters underreporting their earnings to the IRS?”
Or, perhaps, it corrects the issue of the IRS ACCUSING servers of under-reporting their earnings.
Is that so?
When you go shopping for food or clothes, do you tip the clerks? Stores are a service business, we don't tip there do we?
When you buy a car, do you tip the salesman too? How about tipping your undertaker for maybe burying grandma extra extra deep?
Tipping is a strange American custom that needs to die.
You need to work on the sage part of your screen name, FRiend. You appear to have the other part down! ;-P
In my original post, I asked what the link to customer satisfaction was in the server’s motivation, as provided by this system. Perhaps you have an answer to that question, or are you unwilling to actually discuss the issue, preferring to miss it entirely?
We would complain about the cook, complain about the busboys, the dishwasher, the quality of the pre-cooked food product, anything and everything, but for a waitress, we think the only thing that can make her bring us the plates with a smile, is the hope of a form of bribe.
Unions won’t like it. They hate “Piece-Work” because it gives employees an incentive to be very productive, which makes the lazy and inept employees (generally pro-union types) look bad.
Actually tips generally get shared with everybody on your list.
Back in the 70s there was a restaurant in Little Rock that was so popular that waiters could actually “sell” their positions to the highest bidders.
Good idea. The price shown should be what you pay (including tax)
In essence, the price shown on the menu is a lie. There is tax. Then the tip.
But that’s the American way.
I would often say...
"Dangit, I just got stuck with a bunch of New Yorkers at my table."
I am a professional consultant and provide a service. Twice in 25+ years I have received a tip! The shock of getting an “at-a-boy” like that was nice. (Most of my “at-a-boys” come in the form of a call for more work from my clients, or a referral.)
Parking attendants get tips. And low rent entertainers, like those theme park gun shows and kid party clowns. Taxi drivers. Really tips aren’t that uncommon.
Oddly enough, that's actually backwards. Up until the 20th Century, tipping was generally rejected here in the US, largely because it was considered an old world custom. It was introduced in large part as a way to suppliment the incomes that resulted from the loss of revenues due to prohibition.
The Europeans are actually emulating the practice that was common here for the best chunk of our history.
Service (to me) = valet, waiters, concierges, golf club staff, cab drivers, etc.
This is like asking someone to work a sales position w/ no hope of commissions.
Ask any good server and she would never want to work at this place. So you get the bad ones w/ no incentive. Smart.
That Jerk factor goes both ways. When you get lousey service and are forced to tip sucks too.
That goes for you plumber as well, when you are under a house, in the mud, doing thousands of dollars of work that the customer will never see, and you have all kinds of choices in how much effort you will put into it when you are wet and cold, and exhausted, and which items you will replace or not, choices which only he will ever know, and that will decide a large portion of the time and effort he puts into the already priced job, what makes him deliver a consistent level of quality work?
A waitress works in plain sight, and is evaluated by every diner and the owner himself, an indifferent waitress has no place to hide.
Then why would the server even apply for this job at all?
They are being hired to do a job, if the service isnt good I am certain the management will let them know and will correct accordingly.
Everybody who is against this idea seemed to be under the assumption that servers will get hired and immediately let themselves go without repercussions. That’s a ridiculous assumption to make.
There are many trades that do this. Promise a base wage and bonus for performance.
For instance I used to be an appliance repairman. I had a base salary, and received commission for labor, parts and if needed replacement appliance sales.
My performance didnt suffer. If it did, my ass would have been out the door.
Why in your opinion would human nature be different because instead of fixing an A/C unit they are taking orders for drinks?
It seems not only that the amount of tip expected by waitstaff goes up all the time, but the list of those you're expected to tip, period, gets longer and longer. I leave 20+% for decent service and good food (at breakfast, lunch OR dinner), but I do cringe at the "automatic" tips added to the bill. And how do you know who to tip or not? I confess it wouldn't occur to me to tip a plumber or electrician, but I tip deliverymen and the like.
Return sales and customer reviews. Does no good to be a bad server if eventually you have no returning customers because of your attitude. The management certainly wouldnt have it if Jenny came in on her shift everyday on the rag.
The jerk factor are those bosses who refuse to pay their servers and think the customers should do it for them
My negative POV is that the word “awesome” is the most overused word in our vocabulary. When every single thing becomes “awesome” then nothing is awesome. (rant off)