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Thread: Earls.67 implementing a mandatory 16% hospitality charge.

  1. #1
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    Default Earls.67 implementing a mandatory 16% hospitality charge.

    I'm glad to see them trying this. I'm curious how this will turn out. I don't like the idea that if I buy a $100 bottle of wine that I need to pay an extra $16.00 for it.

    https://earls67.ca/journal/new-post/

    AN ALTERNATIVE TO TIPPING
    One of the first policies Earls.67 will be testing is a new compensation model for all staff who work here. Instead of the traditional tipping method, we will be implementing a 16% hospitality charge to all bills. The 16% will be paid to all staff that helped serve and prepare the meal from dishwashers, to chefs, to service staff, in the form of consistent wages.

    Q&A

    Q : Why are you changing the tipping structure?

    A : Earls.67 is about change, innovation and thoughtful examination of alternative methods of service for our guests; it’s a testing site for ideas. One of our newest test policies is the addition of the 16% hospitality charge. We have decided to test this method against the traditional tipping method as a way to compensate the entire team that worked to deliver our guests a great experience. The 16% hospitality will be shared with all staff through higher standard wages. This includes everyone from our highly trained chefs and cooks, to our servers and bar backs. We’re testing this policy and welcome your feedback on it.

    If you’re still curious about our new test new policy, please check out leading hospitality and restaurant subject matter expert, Bruce McAdams, from the University of Guelph, on why we should rethink traditional tipping:



    Q : How will it work?

    A : 100% of the 16% hospitality will be distributed to all staff. This is a prototype to test what we believe will be the future of wage scales in hospitality. We hope to conduct a thorough review of this test policy after its implementation and following feedback from our guests and staff alike. Earls.67 is the perfect place to try this. It is about innovation and experimentation in all facets of the traditional restaurant model.



    Q : Can I still tip if I want to?

    A : No, you have already compensated the wait staff and the kitchen staff with the automatic 16% hospitality.



    Q : What will happen if someone leaves an additional tip?

    A : Any additional gratuity will be divided equally among all staff.



    Q : What if my experience is unsatisfactory?

    A : We are committed to excellent service. If you are unsatisfied with your experience, please speak with a manager and we will make it right.



    Q : Who gets the money?

    A : All of the staff who contributed to your experience will share the 16% hospitality.



    Q : You say you are testing it – how will you evaluate the concept?

    A : We will be looking for comments from our staff at Earls.67 and other Earls establishments. We welcome your feedback. Please go to earls.ca/feedback to leave any comments that you have.



    Q : Is this a reaction to the increase to the minimum wage in Alberta?

    A : This test policy has been developed with the goal that every one of our Earls.67 employees are paid a consistent wage. While we understand that the minimum wage is due to increase in Alberta, our focus is simply to pay our employees a more consistent wage across all of the sectors of our business.

    We’re very excited to try this policy out and welcome your feedback on it. Please visit earls.ca/feedback to leave any comments you have.

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    We've discussed the tipping thing lots before here on beyond...

    Here's why I like it: Often times kitchen staff and dishwashers, etc bust their ass to get a meal out the door. Some idiot waitress gives shitty service, and only receives a 12% tip. Why should the chefs, etc have to take a hit because of shitty service out front?

    Here's why I don't like it: You're limited to tipping only the requisite 16% even if someone went above and beyond to make your dining experience memorable. I have tipped 20-25% before for outstanding service.
    ...

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    Originally posted by Maxx Mazda

    Here's why I don't like it: You're limited to tipping only the requisite 16% even if someone went above and beyond to make your dining experience memorable. I have tipped 20-25% before for outstanding service.
    Q : What will happen if someone leaves an additional tip?

    A : Any additional gratuity will be divided equally among all staff.
    I know it's been discussed before. Just nice to see a larger chain give this an attempt. I know other restaurants have tried it but I'm not really sure how it turned out.

    I'm guessing if this is successful in their eyes they will move it to other restaurants as well.

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    Originally posted by Earls.67

    Q : Can I still tip if I want to?

    A : No, you have already compensated the wait staff and the kitchen staff with the automatic 16% hospitality.



    Q : What will happen if someone leaves an additional tip?

    A : Any additional gratuity will be divided equally among all staff.
    What!?

    So...
    Originally posted by ZenOps
    I say we slow down the spinning of the earth so that there is 25 hours in the day.

    Join me.

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    ...
    Last edited by Sugarphreak; 08-15-2019 at 06:35 PM.

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    The flip side to this is that the waitresses that give shity service and are rude because their having a bad day are still entitled to the 16%.

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    So would it be safe to assume that all staff would now be taxed on all tips?

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    Originally posted by TL911
    The flip side to this is that the waitresses that give shity service and are rude because their having a bad day are still entitled to the 16%.
    We all have bad days. Do you pay less at the grocery store if the person at the till is in a bad mood?

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    So why not just go full tilt and show all the restaurant costs on the bill? This whole tipping thing is getting so silly. Can we just go European style and start rounding to the nearest bill.

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    Originally posted by HomespunLobster


    We all have bad days. Do you pay less at the grocery store if the person at the till is in a bad mood?
    You can tip at the till at the grocery store, and you can tip less if they are in a bad mood.

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    Originally posted by Maxx Mazda
    Here's why I like it: Often times kitchen staff and dishwashers, etc bust their ass to get a meal out the door. Some idiot waitress gives shitty service, and only receives a 12% tip. Why should the chefs, etc have to take a hit because of shitty service out front?
    Almost all restaurants/bar have tip outs based on sales, not tips accrued. If a server gives shit service and gets a $0 tip on a $100 bill but has a 4% tip out, that server still has to pay $4... it's just out of their pocket, now.

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    Originally posted by HomespunLobster


    We all have bad days. Do you pay less at the grocery store if the person at the till is in a bad mood?
    i dont pay more if she is in a good mood.
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    From what I've heard they are having a tough time finding servers. Anyone good at serving makes a lot more per hour than they will with this set up

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    Originally posted by A790

    Almost all restaurants/bar have tip outs based on sales, not tips accrued. If a server gives shit service and gets a $0 tip on a $100 bill but has a 4% tip out, that server still has to pay $4... it's just out of their pocket, now.
    Sounds like a poor system.

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    As I make sure to mention in every tipping thread, keep in mind that every restaurant in North America that gets rid of tips completely has failed with a year.

    Simply getting rid of it completely would be shooting themselves in the foot. People would get scared off by the higher menu prices. It's been proven time and time again.

    This is kind of a clever way of testing the waters when it comes to heading that direction. I'm mostly curious if the tips will still be given out weekly in cash, or now as part of the paycheques

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    ...
    Last edited by Sugarphreak; 08-15-2019 at 06:34 PM.

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    Originally posted by Sugarphreak
    they are supposed to be paying taxes on tips anyway
    If it now showed up on the paycheques though it would be subject to other deductions as well, not just taxes

    That's why I'm really curious if it's still handed out as cash or not

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    tipping is so stupid. How absurd would it be to go buy grocery and tip the farmer and truck driver at the door because they don't get their fair cut? Figure out how much I am supposed to pay. It's not the customer's job to investigate how everyone is paid.

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    T he tipping culture is why you get good service in the us and bad service in Europe though.

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    Originally posted by Buster
    T he tipping culture is why you get good service in the us and bad service in Europe though.
    You don't tip in Japan and the service is excellent. Tipping has very little to do with it, fair wage does, the culture has a lot to do with it too.

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