If a diner is unhappy with service at a restaurant they can voice their concern to the management or leave less tip for their waiter. As I mentioned recently about a recent poll on CNN’s food blog, Eatocracy.com, 49 percent of the people polled said they have left nothing for waiters, while another 34 percent said they have left a very low tip–as little as just a penny–to show their dissatisfaction with service. The amount of a tip, many respondents explained, gives financial reward to waiters for good work and punishes the bad ones.
But what happens when a restaurant eliminates the tipping structure out of their business model entirely? Does service improve or get worse?
Jay Porter, the owner of The Linkery in San Diego, says that his front of house staff and kitchen workers’ performance improved once his restaurant stopped accepting tips. The small neighborhood restaurant began its “no tipping” system in 2004 when they instituted a flat 18 percent “table service fee” on the final check for diners who eat at the restaurant.
“No other profession has the customer adjusting your pay scale according to performance,” says Porter. “That’s just not a circumstance when people do their best work.” Porter says this unique payment model brings his restaurant in line with other American industries. “It’s good for our staff to be seen as professionals, just like every other profession in America. No other profession other than the restaurant industry has people evaluating your work and basing payment on that.”