Most cafe, restaurant and fast food workers in the USA are paid less than the minimum wage, and rely heavily on tips to supplement their basic incomes. The tipping model for the restaurant industry is still an expectation in most places, but some establishments are instead deciding to put their employees on a full salary. For example, Bar Marco in Pittsburgh will be doing away with tips and will actually be giving their employees a $35,ooo per year salary, complete with benefits. The owners of Bar Marco will not shift the costs of the pay-raise to their customers by increasing prices, but instead they are hoping to bring in the money by expanding their business, featuring more menu items and hosting more private events. Employees will also be give given 500 shares in the company so they can actually have a stake in the outcome of the restaurant, and will be receiving 10 paid vacation days per year.
Co-owner Robert Fry says that, “America needs to realize that working in the restaurant industry is an occupation.” Fry did not come up with every aspect of the new approach on his own, but instead he asked some of his most senior employees what they thought would be fair. “They will have a lot of responsibilities, too like being present at bi-monthly finance meetings. We want complete transparency. We want people who want to be part of what we are doing and who want to grow with us,” Fry said. ( Source: Trueactivist.com). In the video below, Youtube Channel College Humor makes a great case for why tipping is a waste of time, how good service bears no relation to a good tip, and how it all started in the first place.