Restaurant Pays Workers $25 Hour By Replacing Tipping With 22% Service Fee

Opponents of workers relying on tips to get by got good news when an Oregon restaurant did away with this practice.

ABC affiliate, KATU, reports:

“As the hospitality industry struggles with staffing, one Portland restaurant is starting to do things differently. Kachka eliminated tipping this week, replacing that model with a 22% service fee.

The owner said this creates a base wage of $25 an hour for all employees, and they’re also able to provide healthcare.

Alek Hermon works in the kitchen as a prep lead. He’s now considering new ways of saving money and taking vacations, telling KATU this will improve his quality of life.

‘Considerably better. I think, relative to my spending and my living expenses, I have a lot more wiggle room now. My fiancée was able to get health insurance through here which was a huge, life-changing thing for her,’ Hermon said.

Owner Bonnie Morales said so far, the feedback has been mostly positive. But she has heard critiques from those who say they like to reward good service with tips.

‘When you have a performance review at work your boss isn’t saying, “You know what, I’m going to cut your pay 20% today, this week because you aren’t doing so hot.” That doesn’t happen and that should not happen to any restaurant worker either,’ Morales said.”

For the rest of the story, visit KATU here.


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