IF the staff is aware of the tip policy when they agree to work for the restaurant and IF the restaurant is complying with minimum wage laws, then it seems the waiters don't really have much to complain about. Crappy policy? Yes. Dishonest with the customers? Absolutely. But you knew about it when you signed up and it isn't illegal.

That said, the restaurant is abusing the generosity of its paying customers who, no doubt, assume that their gratuity is going into the pocket of the individual who provided them service. If the restaurant needs more money for renovations or to provide other general improvements, it should price its food accordingly. Or, at least it should clearly state in writing what the tip policy is before accepting payment. I only hope that the staff is honest enough to explain the policy to the customers and that the restaurant doesn't punish them for disclosing the ruse.

Allowing customers to leave tips and not informing them that those tips will be disbursed in a non-traditional manner, lets the restaurant artificially lower its prices, while making the customer an unwilling and unknowing participant in the game.

One last thing: undoubtedly a good portion of those "tips" arrive in the form of cash. If the restaurant's owners are collecting that cash in the form of "team" revenue and then disbursing it in part to staff and in part to capital improvements, are they properly recording that cash as company income? Something tells me that if they can't be honest with their patrons about where the money goes, they're probably not being honest with the IRS either.

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There's a resteraunt here in San Diego called The Linkery that does something similar. The main difference is that they have explinations posted in highly visible areas making you aware the situation so you're likely to know what's going on long before you pay your bill. The short version is this: they pay their waitstaff a reasonable (ie above minimum) wage in order to make the resteraunt a nicer place to work. Therefore they ask that you don't tip at all and, in fact, aren't allowed to accept tips. I've only been there once, but the staff seemed to like the arangement and the service was good, but not rushed. Our waitress was more than willing to take the time to answer our questions about the menu and the tipping policy and never gave the impression that she needed to rush off to another table.

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Agreed. If there is full disclosure, both to the staff before they're hired and to the patrons, and there is accountability in how the money is being spent (including higher wages), I don't see it as a problem, just a different business model.

Without the disclosure, though, it's slimy.

Kitt
http://www.kittalog.com

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Poster No. 1, JD, has stated my position VERY eloquently. I simply say "Exactly."

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I would have to assume that the people working there don't mind that much otherwise they would work somewhere else.

John

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starbucks sucks, they all should go to hell. corporates are evil, and if you are stupid enough to work for them than you are stupid enough to give your tips away....

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Considering that minimum wage for waitstaff is much less than minimum wage of any other job earner I think it's potentially VERY shady of an employer to steal tips from employees.

If the establishment is disallowing tips to employees it would be more honest to increase the cost of items on the menu and not take tips for the establishment either.

I know of a coffeeshop that did collect tips (by tip jar) and used the accumulated monies to throw the staff a nice party at the end of the year. A little different there as it's obvious that tips garnered aren't going to any one individual, but still end up going to the staff.

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Agree with first commenter. It's fine to change up the business model but you must have full disclosure to employees and patrons alike. I hope this business makes a change in informing it's customers. I personally would not frequent this restaurant until it shows a change of business practice.

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"Stealing." That's what I think of it.

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This is a miserly way of building their business on the backs of their employees. If this policy is not posted so that there could not possibly be any confusion on the part of the customer, than its is not relevant that the employees sign on to the policy when they agree to work there. Diners leave a tip with the expectation that it will go to the employee, or employees. For the house to keep the money is nothing short of stealing, period.

I deeply disagree with srebra that corporations are evil and anyone who works for them deserves to have their money stolen. On its face, that is a naive, shortsighted and childish notion, if not downright ignorant, mean spirited and vindictive. If srebra were to have to actually accept the repercussions of his/her stated "beliefs," than he/she would not be reading a blog hosted by AOL, writing a response on computer made by a corporation etc, etc, etc. I seriously doubt srebra has the guts to do anything but post empty whines, wholly void of substance or character. This, to me, is the far greater force for evil than Starbucks or Walmart, or any other corporation that at its very core, gives people the means to put food on their table and clothe their children.

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You ever see what happens when you microwave a 20 dollar bill?

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There are countries in South America (and in Europe and Asia) where leaving a tip is not customary, and indeed, even an insult. The article doesn't say specifically, but it sounds as if at least one of the owners is South American, and is trying to recreate this ambience.

That said, I can't imagine a waiter working for seven dollars an hour, it is hard, stressful, demanding work. My first wife would often come home from her food service jobs having made in excess of fifty dollars per hour, and that was back in the 1970's. I saw her work a few times, and her customers always got their money's worth in entertainment, service, and excellent food (although sometimes I understand the chefs were not happy with her, management always was).

You will not keep her quality of worker at seven dollars.

And yes, the restaurant should make their tipping policy clear to the patrons; it may well be illegal not to, and they could end up with some pretty heavy legal bills; also the IRS is going to want to talk to them about this. When in Rome....

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Shouldn't the restaurant just raise its food prices by just a hair? Then they wouldn't have to dupe the customers, keep the staff from getting tips, anger America, and raise general uproar. Great job.

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Minimum wage for a waitstaff person in the commonwealth of Pa is 2.13. How much are they paying the staff. And as a former waitress many do not tip, yet you need tyo declare a minimum of 15 % on all Checks.

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I worked many years as a waitress (back to the time we were paid $2.50 for the hours of 2:00 until 1:00 or 2:00 in the morning. That was all we made was the 2.50 and the rest we depended on the tips. If that were me and they were withholding my tips, I would walk out as soon as I found out what they were doing. I don't care what they pay, the tips belong the the INDIVIDUAL who works her butt off to give good service with a smile, when your feet hurt,your back feels like if you lift another tray your spine will splinter. The restaurant owners are stealing if they are taking those tips!!!!

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Absolutely not! A tip is a gratuity for the server. It is supposed to be based on the service they receive and obviously the owners aren't serving them.

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