American Restaurant Creates Tip-Free Model And Pays Workers a Living Wage

American Restaurant Creates Tip-Free Model And Pays Workers a Living Wage

The service industry, at least in the US, is famous for not paying a living wage and relying entirely on tipping from customers. The majority of restaurants in America transfer the cost of labor to the customers, and some restaurants even guilt trip customers to compensate with tips for their low wages.
Well, Zazie is a San Francisco restaurant that’s decided to shake things up, and declares itself as a ‘tip-free’ place. The brunch spot pays its staff a living wage, pays them benefits, and even a share of the profits. Notably, the restaurant has increased the cost of menu items by 25 percent, but customers loved the gesture.
Owner Jennifer Piallat said that they hadn’t had any complaints so far, and one customer even said that the menu still looks reasonable.

According to Piallat, the idea was to bring sense of equality with a profit-sharing model, and she has even implemented a new system in which all of her employees will get a raise. Additionally, all employees get a living wage of $15-$20/hour, paid sick leave, fully funded health insurance (including dental), paid maternity/paternity leave, and a 401(k) plan.
The owner said that the staff working at the restaurant deserve to be rewarded for their efforts, and she jokingly said that the only person losing (some) money is herself.

“My accountant doesn’t like it, but I didn’t want to risk anyone being dissatisfied.” – she noted.

Although Piallat is well aware that the rise in prices could mean losing some customers, she’s determined it will all work out for the best, as the total wait time for brunch went down.

“Maybe they’re the kind of people who wouldn’t have tipped 20 percent in the first place. Or maybe they’re just not doing the math. But hey, if that means the brunch wait on the weekends goes down to 45 minutes instead of an hour and a half, that’s okay with me.” – she concludes.

Source: Upworthy


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