Let’s Play Restaurant Dead Pool

Two restaurants in Minneapolis abolish tipping, raise their staff wages to $15 an hour:

Common Roots Cafe (2558 Lyndale Ave. S.) and Butter Bakery Cafe (3700 Nicollet Ave. S.) informed their customers of the change by posting signs in their establishments and on their social media accounts.

In a lengthy explainer, Common Roots Cafe says it will be raising the pay of its staff from at least $11.40 per hour to a minimum of $15 per hour, plus benefits. As a result it won’t be accepting tips, something the cafe said “never felt right for our business.” To cover the extra cost, prices are rising 15 percent.

“We believe all people, regardless of where they work, should make a fair wage and should not have to depend on tips as a major part of their compensation,” the cafe’s Facebook post said, adding: “We think of this [as] a small step we can take toward making the restaurant industry more equitable and to make our workplace stronger and more supportive of all staff.”

The Butter Bakery Cafe posted a shorter message to customers on Tuesday, saying that it has “built fair wages into our menu prices” and is now a “tip free” eatery.

First things first:  their business, their choice.  Better this than the city forcing it on the businesses.

Although that’s coming.

Other restaurants in the cities have experimented with no tipping policies before but they’ve not always been successful. WCCO reports Upton 43 and Victory 44 ended their no-tipping policy last March after a trial run.

Chef and owner of both establishments, Erick Harcey, said it actually went over well with customers and staff members, but caused the restaurants to be priced out with competitors who didn’t have the same policy.

Let’s check back in six months, shall we? 

10 thoughts on “Let’s Play Restaurant Dead Pool

  1. Raising prices to eliminate tipping must affect the take-out business somewhat.

    I don’t tip on to-go orders.Cooks are paid more because they don’t get tips. No server is involved in to-go orders.

    Common Roots Cafe has an “order online for pickup” button on its web site. There’s no mention of lower prices for take-out. $10 for a sausage, egg, and cheese bagel served in the restaurant with tip included is one thing. However it’s a bit pricey for take-out.

  2. I HAVE A COMMENT WAITING FOR MODERATION.

    See all of the people Walmart is laying off? After they agreed to compensate their people more due to political pressure?

    Did you see that not only is Walmart experimenting with drones doing inventory tasks they are also experimenting with drones ***stocking*** the store?

    ***10%*** of all retail real estate is reportedly going to close in the near future.

    Wage deflation. Store deflation. Technology. Globalized labor.

    And the Left wants to whip out the GOSPLAN playbook while the Fed and the government drives up the cost of living for the poor and the middle class.

  3. Restaurants in France had this concept 30 years ago, when I visited as a student. “Service Complete” meant no tip required – it’s built into the bill. Which means everybody from the head waiter to the dishwasher gets paid an hourly wage no matter how hard they work. That method gives waitresses the same motivation to please the customer as DMV clerks or United Airlines reps. It’s what made high school lunch such a memorable dining experience.

    I expect it to take longer than six months, Mitch. They have to hold it together long enough to get through the holiday season, then they’ll pull the plug. I’ll take the square for January 2, 2018 in the dead pool.

  4. Most of Europe is like that now, and there isn’t an ingrained habit of tipping. If you like the service, leave a Euro or two on the table. In some cases tipping is even considered insulting.

    In the Czech Republic where my daughter works as a server, however, the service cost is not built in and the staff are never insulted by receiving tips. The CR, btw, is part of the EU but not tied to the EU’s wage and price controls – which is why so many EU countries build their manufacturing plants in the Republic.

  5. Joe Doakes wrote:

    “That method gives waitresses the same motivation to please the customer as DMV clerks or United Airlines reps.”

    In a lot of economic situations playing an actors “what’s my motivation?” game helps you divine or define what incentives are or should be in play.

    Socialists apparently don’t play that game. Ever.

  6. “Two restaurants in Minneapolis abolish tipping, raise their staff wages to $15 an hour:”

    They’ll probably also be giving all staff “participation trophies” as well.

  7. In a lot of economic situations playing an actors “what’s my motivation?” game helps you divine or define what incentives are or should be in play.

    Socialists apparently don’t play that game. Ever.

    Troy, this echoes the statement I have developed (altho I’m sure I’m not the first one to do so): Collectivism in any form is antithetical to human nature. Why? What is the basest instinct hard wired into our brains? Self-preservation. Eventually, people who are forced to contribute when others reap the spoils of those contributions without contributing themselves, decide to quit contributing. One of two things will follow: 1) That society will collapse, or 2) the involuntary contributions will continue, at gunpoint and behind the political or physical wall that exists to prevent people from leaving.

    China, Cuba, USSR, and East Germany are the biggest examples.

  8. Whoops, I missed the word that contains the name of the pill to enhance male libido.

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