Tried that no-tipping policy restaurant in Portland last month

I was sure it was gonna be a gimmick (you know, just a way to underpay staff). But the server told me they start at $22 an hour and the menu prices were maybe 10% higher than similar spots. Has anyone else seen this model actually work somewhere?

3 comments

3 Comments

amy1547d ago

Wait, $22 an hour starting?? @jordang32 you really think that math doesn't work out but damn that's way higher than I expected for a non-tip place lol. That server must've been happy to work there.

jordang327d ago

Hold up, let's look at this for more than a minute. The real cost isn't just the menu price bump, it's the restaurant having to pay for things like health insurance, payroll taxes, and paid time off for these $22/hour workers. Most small spots barely stay afloat as it is, so that extra 10% probably isn't covering all the backend costs. Plus, what happens when business is slow? You're stuck paying staff the same high rate even if nobody's in the seats, which just means higher menu prices for everyone. If this model becomes the norm, you'll probably see a lot of neighborhood joints close down or switch to cheaper, lower quality ingredients just to keep the lights on. How long before the prices jump another 15% to cover the real costs?

grant.nina3d ago

jordang32 makes a solid point about the backend costs adding up, but let's dig into something specific. You mentioned slow nights being a problem with fixed pay. But what about restaurants that already guarantee tipped staff a minimum wage if tips fall short? Isn't that basically the same risk, just hidden from the customer? I'd rather know my meal costs 10% more upfront than get hit with a surprise 20% tip suggestion on a slow Tuesday when the place is dead and service was fine. So how many slow nights does a place actually survive before the whole thing tanks?