Best Way to Pay Servers

Discussion in 'Growing and Managing a Business' started by TheStar, Oct 23, 2009.

  1. TheStar

    TheStar
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    Typically servers are paid a low wage and their tips are part of their pay. But in my restaurant, I want to pay servers the general minimum wage (or something reasonably higher) and not allow them to accept tips. Obviously I cannot stop customers from tipping servers, but I want to make it a requirement that they turn their tips in [and they will be divided amongst all employees]. Is this a good idea? Can I do this if I choose?
     
  2. dahlia84

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    I like the way how you think different :) Well, I am not sure about the people mentality in your area but this idea will definitely not work in India. Server are tipped for their service to a table (that is, customer). They will not be happy if you ask them to share it with other fellow servers. What they have got is theirs - Simple Human Psychology! I personally would not implement this if I were a Restaurant Owner or a Server.
     
  3. seanstevens

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    I actually think this is a good idea and fosters a good team spirit, an "all in it together" mentality. I know some places in the UK that operate in the same manner and it gets good staff reviews. As long as the basic wage is ok then you can spell it out from the start that tips are not part of the wage and therefore the whole team gets to share them, then it is up to them if they accept the job or not.
     
  4. Fergal

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    Welcome to Business Advice Forum TheStar and thanks for asking your business questions.

    A lot of restaurants and bars in Ireland actually operate like that and it works out very well for them. It can encourage team work, because staff know that if they work together and make an effort to satisfy your customers, all staff earn more. It's also good for rewarding back room staff, who normally don't meet the customers, but still have an important role in customer satisfaction.
     
  5. TheStar

    TheStar
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    Thanks everyone. I feel that all employees should get tips because, after all, everyone takes part in serving the customers whether directly or indirectly.
     
  6. Tecknowoman

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    If you build a great team with a great team spirit this will work well for you. The only times I have seen it not work is where there was not a strong leader and not a strong team. If anyone is actually working better than most and not rewarded they get resentful, or alternatively if one is really poorly letting everyone down there is also resentment. However as I said I've only seen that be a problem where leadership wasn't strong and so the team spirit wasn't either!
    Good luck with it.
     

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