Kurt R.A. Giambastiani

I’m a good tipper. As long as the service is good, I generally tip 20% because after a glass or two of wine, the math on 20% is easier than figuring out 15%. (Yes, I can be that lazy.)

I understand the business model for restaurant wait-staff–low wages are compensated for by customer tips–but I’ve never liked it. It’s unreliable and it’s inherently unfair to the back-of-the-house workers. Also, different shifts receive different pay (lunch crowds tip less than evening diners), and different nights can bring vastly different take-home pay for staff who depend on tips. A couple weeks of low patronage can mean a waiter might not earn enough to make the rent.

In short, it’s a centuries-old scheme that depends on the kindness of strangers. It is flawed from the get-go, and I would be pleased as Punch if we tossed it into the rubbish bin of social history.

Here in Seattle, it seems we’re preparing to do exactly that. Or, at least, we’re preparing to give it a serious makeover.

Last month, the minimum wage for tip-earning wait-staff in smaller Seattle restaurants rose to $10/hr (it’s $11/hr for non-tip-earning employees), and it will continue to increase in a phased-in approach until it reaches $15/hr by the year 2021.

This has put restaurants in a lather, as evidenced by their haphazard response. While most restaurants are playing Wait & See, others are implementing a wide array of solutions to deal with the increased costs. Some restaurants have taken the European approach, adding a flat rate service charge to each bill, a few have eliminated tipping altogether, raising prices to compensate, while still others have taken a hybrid approach of modest price increases while retaining the practice of tips.

It’s a hodge-podge.

It’s not just the restaurant owners who are complaining. High-performing wait-staff are complaining, too. Some waiters report tip-bolstered earnings of up to $45/hour, but in 2014 the average hourly income (including tips) for a waiter in Seattle was $14.18, so even for them, a tipless $10/hr is a big pay cut. On the other hand, for the rest of the staff–primarily the cooks and dishwashers in the back of the house but also the bussers and runners in the front–the wage hike will be a boon because tips aren’t shared with back-house staff, and bussers and runners usually get a smaller cut than servers.

Eliminating tips for food service employees creates a pay cut that is not balanced by the raise in the minimum wage. I understand that the restaurant business is a hard place to make a fortune–profit margins can be thin, costs are high, the work is physically demanding, and the hours can be punishing–but none of that is an excuse for paying someone less than a living wage or gaming the system so you don’t have to provide them with benefits.

But should we maintain the practice of tipping, with its inherently variable nature?

Here’s a thought. Let’s get rid of tips, but revamp the wage structures, too.

• Get rid of tips altogether
• Raise prices/add service fees to recoup the amounts that would have been received in tips
• Pay all your staff a wage that will keep them off food stamps
• Pay your front-line servers a higher wage than the minimum, to reflect their greater responsibility for the business success

According to a UC Berkeley report, a 4-5% increase in prices would cover the higher wages. That covers wage increases for the back-house staff. Tacking on a 15% service charge would cover higher wages for the front-house staff, but still keep base menu prices at competitive levels that won’t scare away customers.

So, let’s just forget about tipping altogether. With a 5% increase plus a 15% surcharge, I’m back at my 20% tip. I’m willing to pay that so the staff doesn’t have to get food stamps to make ends meet.

After all, dining out isn’t a necessity, it’s a luxury.

k