Skip to navigationSkip to content

Why it’s better to give restaurant workers the minimum wage (than argue over tips)

By MarketWatch

A new analysis finds Washington, D.C. and other cities may benefit from eliminating tipsRead full story

Comments

  • Also share to
  • I will say this... no one (including myself) would continue to work in this thankless industry if we had to work for wages. Service will suffer and nobody will enjoy eating out anymore because there is no incentive to take the condemnation that comes our way on a daily basis from the general population.

  • The restaurant business is such an antiquated model of indentured servitude. It’s literally just one step out of the Middle Ages. On top of that, the vast majority of new restaurants fail in the first few years. One of the reasons must be the abject absurdity of hiring workers that you almost don’t pay. It’s time to for the industry to grow up and enter the 21st, or 20th, or 19th century.

  • It makes sense that a reconstruction-era system where customers pay service workers directly is less equitable than one where all are paid a fair wage. But the interest groups here are strong so the debate remains ambiguous. And there will be winners and losers with any policy change and the noise sometimes trumps the data.

  • Time to eliminate the racist practice of tipping. People have a job and should be paid for it.

  • I realize that the USA and Japan are two completely different societies. That being said, Japan does not allow tipping, pays their servicepeople a fair wage, and has some of the best service across the board when it comes to any service industry.

    It can be done. The problem is surmountable.

    As for the price increase that will come with fair wages, folks who are already tipping the proper 20% in restaurants won't see any change. It is only the cheap bastards who refuse to tip (or refuse to tip

    I realize that the USA and Japan are two completely different societies. That being said, Japan does not allow tipping, pays their servicepeople a fair wage, and has some of the best service across the board when it comes to any service industry.

    It can be done. The problem is surmountable.

    As for the price increase that will come with fair wages, folks who are already tipping the proper 20% in restaurants won't see any change. It is only the cheap bastards who refuse to tip (or refuse to tip well) who will take a much deserved hit in the pocketbook.

  • Erasing tips entirely isn’t even necessary. If you pay your employees minimum wage and split the tips at a reasonable percentage, you’ll have happier employees, which often means you’ll have a rise in your numbers. How hard servers work in comparison to how much they take home in many restaurants is flat out ridiculous. They have to pay their bills like the rest of us, on a $2-$4 hourly pay, while splitting their primary income with the rest of the crew. There’s a reasonable way to approach paying

    Erasing tips entirely isn’t even necessary. If you pay your employees minimum wage and split the tips at a reasonable percentage, you’ll have happier employees, which often means you’ll have a rise in your numbers. How hard servers work in comparison to how much they take home in many restaurants is flat out ridiculous. They have to pay their bills like the rest of us, on a $2-$4 hourly pay, while splitting their primary income with the rest of the crew. There’s a reasonable way to approach paying them better without losing too much money (though, I feel the primary focus should be making enough money to stay in business and pay employees rather than cranking out a humongous profit). But seriously, paying them below minimum wage just isn’t right.

Want more conversations like this?

Join the Quartz community for all the intelligence, without the noise.

App Store BadgeGoogle Play Badge
Leaderboard Screenshot

A community of leaders, subject matter experts, and curious minds bringing nuance back to how we talk about the news.

Editors' Picks Screenshot

No content overload: our editors will curate the most notable and discussion-worthy pieces for you every day.

Share Screenshot

Don’t just read the story, tell it: contribute your ideas and experience to the dialogue.