Utah Restaurants: Now Accepting Tips–Again

Utah RestaurantsUtah is not new to changes. Neither is it opposed to it. As a state recognized for its education system, Utah is at the forefront of innovation. But sometimes change is not a good thing. 

Case in point: The switch to no tipping, and why several companies decided to go back to the "traditional" way of doing things. 

No tipping at the back end

The “no tipping” policy should have addressed the wage difference between those with client-facing jobs, such as the waiters, and those in the kitchen, such as the cooks and dishwashers. According to a restaurant owner in San Francisco, the kitchen staff received a $13-$20 hourly wage, while the front of the house staff earned at least $25. Their wage could go up to $40. 

So why did Joe’s Crab Shack, which announced the move to the no-tip model late last year, decide to revert to the old ways? There was the issue of attrition and the imminent increase in minimum wage. 

Where the salary increase came from

Attrition became a major concern when companies started hiring and training younger staff (who would agree to the initial pay). And then these employees leave, eager to find better opportunities elsewhere. Companies also had to hike up their menu prices to cover the wage increase they awarded their current employees. 

Double T. Inc quips that with such money, imagine all the new sidings, chef training, and perhaps kitchen remodeling plans that the money could have been used for. That may have been one of the many thoughts of business owners who decided to go back to tipping. 

With spring setting in, carrying with it a cooler and wetter environment, it’s no wonder businesses in the service and hospitality industry would rather use a tried-and-tested method while keeping their prices low and having enough money to keep their establishment in good shape.