AbeBeta;4203609 said:
Wow, you think it is all about the hourly wage don't you? You pay 20 an hour -- provide legitimate benefits, sick time, vacation, and stability -- see where that gets you in terms of cost savings in terms of turnover, discipline, and a general reduction in problems. Now that you have people who are working for you at an hourly wage, you can also likely eliminate some of the staff you need for other work -- a well paid and benefited employee will have no problem spending 30 minutes at the end of the night cleaning and on other tasks that don't relate to tips.
Again -- different model.
Eliminate tips entirely from the cost of the meal. The customer walks out the door paying as much as they would have otherwise.
Why are you assuming that there's a huge turnover? What other major cost problems are you creating to validate your position? Discipline?
Are you throwing crap against the wall and expecting some of this to stick because anyone in the business is looking at you right now and shaking their head. You don't know where the hidden costs are, and you don't know how the labor is partitioned to subsidize the operations of the restaurant.
They already are spending an hour to two hours after their last table doing things not related to tips. I pointed that out in either my first or second post in this thread. Go back and read it again and see where I'm saving you, the customer, dollar after dollar by using $2.13 instead of $20 a hour labor.
We're subsidizing your meal cost with $2.13 an hour labor. Staff comes in an hour to 90 minutes before opening and work at $2.13. They stay an hour after their last table to clean their section, do side work, and to get ready for the next day.
Every week day, excluding Saturdays, I run with five waiters to open the restaurant and we're not that big of a place. It takes all five to open. On Saturday we run with 3 because their is a little more down time but we run with 6 or 7 on Sunday mornings.
It averages out to five waiterstaff, every single day, spending an hour on the clock at $2.13. My total wage burden for that hour is currently $75 a week. Paying a "living wage" and
REDUCING my staff's income by 30% would put them at the $14 to $15 an hour mark. They open the bar, do all the set up, and no other person is on the clock in the *** until ten till 11 when my busser and bar staff come in.
That hour is now costing me $525 a week. Bussers make more per hour now, but are also subsidized by the waiter's tips. Same with the bar.
Your idea has cost me $23,000 a year, for that one single hour a day. Double it for the hour after their last table has left.
$46,000 for opening and closing duties. Two hours a day, and that's just the highest crystal on the tip of the iceberg. Where's the non-issue of "discipline" and the fictitious monstrous turnover rate costing me $46,000 per year? Hmmm?
How about for larger floor plan chain restaurant? How about opening with 8-10 waiters per day per week? You can't take the minimum wage route with bussers because they're making more than that, easily, per hour with the tips they're getting from the waitstaff.
No matter how you slice it, changing the tip system in America drastically changes the dining experience and ultimate cost to the owners and investors. It only hurts the business's bottomline.