Restaurant Adopts ‘No Tipping’ Policy
Tipping at restaurants is always a big issue, whether it's people leaving huge tips or none at all. Well, Packhouse Meats in Kentucky has adopted a "No Tipping" policy.
The owner, Bob Conway, explains:
"I've heard the horror stories – $3 left on a $100 tab," he said. "How much a server makes has nothing to do with how hard they work. Servers had quit because they couldn't make ends meet."
So, in his new restaurant, he had a chance to try a different approach: "We wanted our servers to participate in our productivity by giving them reasonable compensation based on sales. It takes the whim of the customers out of it."
Packhouse servers earn $10 per hour or 20 percent of their individual food sales per shift, whichever is larger – almost always the 20 percent. And servers have to meet certain goals – sales and service targets, for example – to get their 20 percent.