Home Mail MemberMap Chat (0) Wallpapers
Go Back   ChiefsPlanet > The Lounge

Reply
 
Thread Tools Display Modes
Old 08-15-2013, 02:57 PM  
Fish Fish is offline
Missing Dick Curl
 
Fish's Avatar
 
Join Date: Sep 2005
Casino cash: $2120028
Restaurant bans tipping. Guess what happened?

After I banned tipping at my restaurant, the service got better and we made more money

Tipping, as a compensation scheme, is great for everyone.

Restaurant customers like tipping because it puts them in the driverís seat. As a diner, you control your experience, using the power of your tip to make sure your server works hard for you.

Restaurant servers like tipping because it means their talent is rewarded. As a great server, you get paid more than your peers, because you are a better worker.

Restaurant owners like tipping because it means they donít have to pay for managers to closely supervise their servers. With customers using tips to enforce good service, owners can be confident that servers will do their best work.

Thereís only one problem: none of this is actually true. I know because I ran the experiment myself.

For over eight years, I was the owner and operator of San Diegoís farm-to-table restaurant The Linkery, until we closed it this summer to move to San Francisco. At first, we ran the Linkery like every other restaurant in America, letting tips provide compensation and motivation for our team. In our second year, however, we tired of the tip system, and we eliminated tipping from our restaurant. We instead applied a straight 18% service charge to all dining-in checks, and refused to accept any further payment. We became the first and, for years, the only table-service restaurant in America where you couldnít pay more money than the amount we charged you.

You can guess what happened. Our service improved, our revenue went up, and both our business and our employees made more money. Hereís why:
  • Researchers have found (pdf) that customers donít actually vary their tips much according to service. Instead they tip mostly the same every time, according to their personal habits.

  • Tipped servers, in turn, learn that service quality isnít particularly important to their revenue. Instead they are rewarded for maximizing the number of guests they serve, even though that degrades service quality.

  • Furthermore, servers in tipping environments learn to profile guests (pdf), and attend mainly to those who fit the stereotypes of good tippers. This may increase the serverís earnings, while creating negative experiences for the many restaurant customers who are women, ethnic minorities, elderly or from foreign countries.

  • On the occasions when a server is punished for poor service by a customer withholding a standard tip, the server can keep that information to himself. While the customer thinks she is sending a message, that message never makes it to a manager, and the problem is never addressed.

  • You can see that tipping promotes and facilitates bad service. It gives servers the choice between doing their best work and making the most money. While most servers choose to do their best work, making them choose one or the other is bad business.

By removing tipping from the Linkery, we aligned ourselves with every other business model in America. Servers and management could work together toward one goal: giving all of our guests the best possible experience. When we did it well, we all made more money. As you can imagine, it was easy for us to find people who wanted to work in this environment, with clear goals and rewards for succeeding as a team.

Maybe it wouldnít work in every restaurant, in every city. Maybe the fact that it worked so well for us was due to some unique set of circumstances. Then again, other service industries like health care and law arenít exactly lining up to adopt tips as their primary method of compensation. So maybe weíre all just being suckered into believing tipping works.

Itís something you can think about, at least, the next time youíre waiting on a refill of iced tea.
Posts: 25,412
Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.
  Reply With Quote
Old 08-15-2013, 02:57 PM   #2
Fish Fish is offline
Missing Dick Curl
 
Fish's Avatar
 

Join Date: Sep 2005
Casino cash: $2120028
Upscale NYC sushi place does the same thing: http://abcnews.go.com/blogs/headline...ant-bans-tips/
__________________
Posts: 25,412
Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.Fish is obviously part of the inner Circle.
  Reply With Quote
Old 08-15-2013, 02:59 PM   #3
Pasta Giant Meatball Pasta Giant Meatball is offline
Hungry?
 
Pasta Giant Meatball's Avatar
 

Join Date: Oct 2005
Location: U.S.A.
Casino cash: $1242785
Mr. Pink approves
Posts: 30,605
Pasta Giant Meatball is obviously part of the inner Circle.Pasta Giant Meatball is obviously part of the inner Circle.Pasta Giant Meatball is obviously part of the inner Circle.Pasta Giant Meatball is obviously part of the inner Circle.Pasta Giant Meatball is obviously part of the inner Circle.Pasta Giant Meatball is obviously part of the inner Circle.Pasta Giant Meatball is obviously part of the inner Circle.Pasta Giant Meatball is obviously part of the inner Circle.Pasta Giant Meatball is obviously part of the inner Circle.Pasta Giant Meatball is obviously part of the inner Circle.Pasta Giant Meatball is obviously part of the inner Circle.
  Reply With Quote
Old 08-15-2013, 02:59 PM   #4
theelusiveeightrop theelusiveeightrop is offline
Spiraling down the Drain
 
theelusiveeightrop's Avatar
 

Join Date: Oct 2012
Location: Dante's Ninth Circle
Casino cash: $106386
Good news!
__________________
"We're both part of the same hypocrisy, Senator, but never think it applies to my family."
Posts: 19,111
theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.theelusiveeightrop is obviously part of the inner Circle.
  Reply With Quote
Old 08-15-2013, 02:59 PM   #5
jd1020 jd1020 is offline
MVP
 

Join Date: Nov 2010
Casino cash: $83435
Amy's Baking Co.?
Posts: 13,192
jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.jd1020 Forgot to Remove His Claytex and Got Toxic Shock Syndrome.
  Reply With Quote
Old 08-15-2013, 03:03 PM   #6
Rain Man Rain Man is offline
No known superpowers
 
Rain Man's Avatar
 

Join Date: Jul 2001
Location: In A World Few See
Casino cash: $62712085
I would eat at this place every day.
__________________
In the final seven games of the 2013 season, the Chiefs averaged 34.6 points per game, scored 38 points or more 4 times, and went 2-5. The NFL has ruined the sport.
Posts: 75,771
Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.Rain Man is obviously part of the inner Circle.
  Reply With Quote
Old 08-15-2013, 03:03 PM   #7
J Diddy J Diddy is offline
One Groovy Cat
 
J Diddy's Avatar
 

Join Date: Aug 2001
Location: The Pitt State baby
Casino cash: $166203
I'm not sure how that's banning tipping. Seems to me it's a way for the company to get a cut of the tips.
Posts: 29,284
J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.
  Reply With Quote
Old 08-15-2013, 03:04 PM   #8
siberian khatru siberian khatru is offline
21st Century Schizoid Fan
 
siberian khatru's Avatar
 

Join Date: Jul 2002
Location: The Gates of Delirium
Casino cash: $127232
__________________
If you make enough good decisions, three-year plans turn into two-year plans and five-year plans turn into three-year plans. If you make bad decisions, 10-year plans turn into no plan. -- Dayton Moore, 2006

"I'm not talking about getting to .500, I'm talking about winning the World Series when I say eight to 10 years." -- Dayton Moore, May 20, 2009
Posts: 43,394
siberian khatru has enough rep power to blowy ou to bits.siberian khatru has enough rep power to blowy ou to bits.siberian khatru has enough rep power to blowy ou to bits.siberian khatru has enough rep power to blowy ou to bits.siberian khatru has enough rep power to blowy ou to bits.siberian khatru has enough rep power to blowy ou to bits.siberian khatru has enough rep power to blowy ou to bits.siberian khatru has enough rep power to blowy ou to bits.siberian khatru has enough rep power to blowy ou to bits.siberian khatru has enough rep power to blowy ou to bits.siberian khatru has enough rep power to blowy ou to bits.
  Reply With Quote
Old 08-15-2013, 03:05 PM   #9
Loneiguana Loneiguana is offline
Veteran
 
Loneiguana's Avatar
 

Join Date: Nov 2012
Location: Springfield
Casino cash: $33161
I agree with the approach this guy is taking, but wish he would actually factor the tips into his prices instead of mandatory tip, which is kinda what he did.
__________________
"Most of us can, as we choose, make of this world either a palace or a prison."
ĖJohn Lubbock
Posts: 3,625
Loneiguana would the whole thing.Loneiguana would the whole thing.Loneiguana would the whole thing.Loneiguana would the whole thing.Loneiguana would the whole thing.Loneiguana would the whole thing.Loneiguana would the whole thing.Loneiguana would the whole thing.Loneiguana would the whole thing.Loneiguana would the whole thing.Loneiguana would the whole thing.
  Reply With Quote
Old 08-15-2013, 03:06 PM   #10
kstater kstater is offline
Custom User Title
 
kstater's Avatar
 

Join Date: Jan 2007
Casino cash: $10478134
All this does is show that the average person tips less than 18%. They're still trying to turn over as many people as they can to get the next table to charge another 18% regardless of service quality.
Posts: 32,667
kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.
  Reply With Quote
Old 08-15-2013, 03:07 PM   #11
J Diddy J Diddy is offline
One Groovy Cat
 
J Diddy's Avatar
 

Join Date: Aug 2001
Location: The Pitt State baby
Casino cash: $166203
Quote:
Originally Posted by kstater View Post
All this does is show that the average person tips less than 18%. They're still trying to turn over as many people as they can to get the next table to charge another 18%,
I'm curious as to how much the server actually gets.
Posts: 29,284
J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.J Diddy is obviously part of the inner Circle.
  Reply With Quote
Old 08-15-2013, 03:12 PM   #12
Prison Bitch Prison Bitch is offline
The Bitch is back
 
Prison Bitch's Avatar
 

Join Date: Nov 2012
Location: Lees summit
Casino cash: $80433
Quote:
Originally Posted by kstater View Post
All this does is show that the average person tips less than 18%. They're still trying to turn over as many people as they can to get the next table to charge another 18% regardless of service quality.
+1
__________________
___________________________________
Posts: 12,479
Prison Bitch is too fat/Omaha.Prison Bitch is too fat/Omaha.Prison Bitch is too fat/Omaha.Prison Bitch is too fat/Omaha.Prison Bitch is too fat/Omaha.Prison Bitch is too fat/Omaha.Prison Bitch is too fat/Omaha.Prison Bitch is too fat/Omaha.Prison Bitch is too fat/Omaha.Prison Bitch is too fat/Omaha.Prison Bitch is too fat/Omaha.
  Reply With Quote
Old 08-15-2013, 03:12 PM   #13
Pestilence Pestilence is offline
Want a ride?
 
Pestilence's Avatar
 

Join Date: Dec 2006
Location: Nor-Cal
Casino cash: $77615902
So the customer can do nothing when they get shitty service?
Posts: 43,487
Pestilence is obviously part of the inner Circle.Pestilence is obviously part of the inner Circle.Pestilence is obviously part of the inner Circle.Pestilence is obviously part of the inner Circle.Pestilence is obviously part of the inner Circle.Pestilence is obviously part of the inner Circle.Pestilence is obviously part of the inner Circle.Pestilence is obviously part of the inner Circle.Pestilence is obviously part of the inner Circle.Pestilence is obviously part of the inner Circle.Pestilence is obviously part of the inner Circle.
  Reply With Quote
Old 08-15-2013, 03:13 PM   #14
kstater kstater is offline
Custom User Title
 
kstater's Avatar
 

Join Date: Jan 2007
Casino cash: $10478134
How do they quantify their service improved?
Posts: 32,667
kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.
  Reply With Quote
Old 08-15-2013, 03:13 PM   #15
kstater kstater is offline
Custom User Title
 
kstater's Avatar
 

Join Date: Jan 2007
Casino cash: $10478134
How do they correlate that the increased revenue was due to no tipping policy?
Posts: 32,667
kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.kstater is too fat/Omaha.
  Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump


All times are GMT -6. The time now is 03:44 AM.


Powered by vBulletin® Version 3.8.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.