Is the Future of Restaurants No Tipping?

Recently restaurants have been experimenting with removing tipping for servers and replacing them with higher hourly wages and other incentives. Instead of relying on the diners to dictate the servers salary, the restaurant Packhouse in Kentucky is pays servers $10 an hour and if they hit certain goals during their shift– they can earn 20 percent of their total sales.

Currently, the federal minimum wage for tipped workers is $2.13 an hour. But if the servers are paid a higher hourly wage, this protects the servers on really slow days. The menu prices have increased but now diners known exactly how much they are going to pay after they have ordered. Restaurants that have adopted this new payment structure– are seeing an increase in customer service and employee satisfaction.

Is this the way of the future in the industry? Do you think that consumer's are having tipping fatigue? Especially since fast casuals are changing how customers view service- they can still get some customer service but not have to tip for it if they don't want to. Read More