Here is what we did
We went to a “No Tipping Allowed” environment, For a few different reasons, and it has been much easier being an employer with it
We added a 15% “service charge” on all menu items (its not a tip!) we call it our “Fair & Equitable Wage Program”
Due to federal laws, tips cannot be pooled and disbursed among all crew members, so we disburse this “Service Charge” equally among all hourly employees (not management or ownership)
This allows me to attract the best labor the area has to offer (that’s not saying much these days though) It is no longer a fight getting my BOH people to help out up front, and another bonus i’ve found is that when my staff feels someone is not pulling their weight, they speak up about it because it is cutting into their pay by needing to split that EWP (Equitable Wage Program) amount with slugs gets them upset and they speak up to the employee being less productive, and to management.
The one event that turned me to this was a large pick-up order of about $1,500.00, a week earlier a cashier spent 30+ minutes with the customer getting all the info, figuring amounts needed, setting time/dates, entered the prder into the POS.
So the day of pick up, the customer comes in, A different cashier just clocked in, looks up and greets the customer, they said they are here for their large order, she accepts the money, they tip $75-$80, guess who that tip got assigned to? Not the person who did all the work booking the event, not the cooks who prepared and packaged it, not the support staff who cleaned up and did prep for it, the girl who just clocked in and did absolutely nothing concerning this order. I saw that as very unfair, so working within the laws, I saw no remedy. So enter or EWP …
For the receipt., I use a Canadian printer template so the EWP shows as a line item, and we have notices all over the entry and counter of our establishment to inform customers of the program/
99.9% love the plan, but there is always a few bungholes who cannot wrap their head around it.
the way I explain, is we could have raised prices by 15% , but we still end up with unfair tipping disbursement and a chance of getting into trouble with current laws if tips are pooled/
My cashiers do not get a paid a “Tipped Wage” they get well above minimum, the EWP funds collected get split among all employees according to hours worked, so each get a different percentage
Read this >>>>
http://www.deltadiner.com/follow-up-on-comments-regarding-no-tip-policy/
We use a similar program, but instead of our staff getting the same hourly pay, it slides with the sales we do, so if we are slammed, they make more money, not so busy, they don’t make as much.
The week of July 4th, my main line cook exceeded $25/Hour, my dishwashers/support crew made over $15/Hour, cashiers came in around $18/hour
So not everyone gets payed exactly the same, they get paid hourly according to their skills, then get the EWP on top of their hourly.
Check it out, it really got a team environment happening here, and happy happy happy staff that can now have a better quality of life