Restaurant Issues Ban on Tipping, Compensates by Giving Servers 20% of Sales Per Shift


Packhouse Meats isn’t just known for their food, rather, they’re known for their very public ban on tipping. The Kentucky restaurant opened earlier this year and with it a decree that no server will receive tips in any way, shape, or form. The floor of the establishment even features a giant picture of a hand with the words NO TIPPING in bright red, in case there was any confusing regarding the rule.

According to the Cincinnati Enquirer, owner Bob Conway implemented the policy as he felt it took advantage of the servers. Conway did find a way to make up for lack of tip money going towards his servers, however, by creating a system where servers can make either $10 an hour or 20 percent of their individual food sales each shift. Whichever ends up being higher at the end of the night. The system was designed to give servers a reasonable incentive to make sales rather than depend on what the customer feels like tipping at the end of the meal. Customers who pay with a credit will notice that there isn’t even a line for tips on the receipts.

While the policy was made in the interests of his employees, Conway has received some backlash for it. One particular concern was that it took away any incentive to provide good service once menu sales have been made. Tips, after all, are the safety nets between servers and customers that provide a sense of security with their foods. However, as long as my food arrives hot and my drinks loogie-free, I’m happy.

Picthx Packhouse Meats

By Peter Pham

Pete's favorite foods include pizza, tacos and pretty much any kind of breakfast. He'll usually snap a photo or two while his food cools down.

25 replies on “Restaurant Issues Ban on Tipping, Compensates by Giving Servers 20% of Sales Per Shift”

The idiot who complained about it taking away the incentive to provide good service is probably lousy tipper anyway. I think this plan is fabulous, and I would love to see it implemented in more restaurants.


However, there will no doubt be servers who oppose this decision if it ‘catches on’ everywhere and becomes the norm, especially the servers who make a couple hundred bucks a night in just tips alone.

Servers shouldn’t provide good service ONLY because they’re trying to get good tips. They should provide good service because it’s their job. Period.

And let me add that this in no way suggests servers shouldn’t receive tips. I’m simply saying that you do a job well because you like your job and you take pride in your job – not because you’re trying to score brownie points with the customer. Sadly, from working in restaurants, I’ve seen some kickass servers bust their butts and bend over backwards to make a table’s meal as enjoyable as possible and the fuckheads walk out without even leaving a dime.

most people are servers not cause they like the job but because there is a lack of said jobs. In fact the server position of a restaurant isn’t always a most desirable position because of rude customers. Perhaps there is a highly sensitive customer that requires more attention than others and would be willing to make a scene in the place. Any position where it comes to dealing with customers is extremely stressful and people rarely want thtat position. To say they have to like a job they are doing is totally blown out of proportion. Because most people hate their jobs, and work them to GET money.

You missed my point, dear.

I’m not saying every server actually likes their job. Some do, some don’t. A friend of mine is a waitress and she loves it. Me, I hated it with a passion. But that’s mostly because I’m not a people person, I haven’t the patience to deal with the majority of them. I was happier stuck back in the kitchen rather than dealing with the public.

However, my point was that ANY job, to do it well, requires a certain amount of pride in what you’re doing. Otherwise you’re only going through the motions. If one hates their job so much that they have to fake it just to get through it, then maybe it’s time to find something else. Not always easy, though, that much I agree with. Sometimes you have to take what you can get. But if you have pride in yourself and what you’re doing – regardless of what it is – it will show.

Servers earn a wage just like literally every single other employee in the world. I don’t tip supermarket cashiers, I don’t tip car mechanics and I don’t tip air hostesses so why the fuck would I tip a restaurant server?
Still an ordinary job that they earn a paycheque for. Any server who thinks they’re entitled to tips is a moron. Only in the US would such a moronic system be put in place.

Besides, if you need extra money on TOP of your paycheque that you earn like everybody else to provide good service, you shouldn’t be working in any industry that involves working for other people anyway.

Yeah, but the problem is that some restaurant establishments pay their servers less than minimum wage. For the whole “no tipping” thing to fly, employers are going to have to start paying at least that. Otherwise they (the employees) would be better off getting a job flipping burgers.

Many servers rely on tips as part of their salary.

Servers make less than minimum wage because their tips are taxed. Every time a credit card receipt has a tip on it, that amount gets automatically reported as earnings. A server’s paycheck for 60-80 hours of work over the course of two weeks is typically less than $100. Not to mention that servers are often obligated to give some of their tips to the bussers, the bartenders, sometimes even the hosts and kitchen, usually to the tune of another 10-20%. Trust me, most servers aren’t making nearly as much money as you think they are; they rely on tips for their actual earnings.

Exactly. And therein lies the problem and why the whole tipping thing should probably just be tossed out the window.

I always tip well, regardless. Even if I dislike the food I still tip well because it’s not my server’s fault that the food sucks. That and I’ve worked in restaurants, I see the B.S. the servers have to go through and you’re absolutely correct in what you said, that the servers, in some restaurants (don’t know how it is in ALL of them) have to shell out some of their tip money to the bussers, etc. That’s why I get so angry at the people who sit back and say “well I don’t tip my lawyer or the bagger at the grocery store” because many servers don’t even make as much as a bagger does. Car mechanics, to use Gaz’s example, make a nice salary. So do air hostesses. Cashiers, eh, it’s not a huge salary, but they still make more per hour than a waiter or a waitress, in many cases.

I hate that logic.

Except, in the US, the average wage that they earn hourly is about $3. Unless the system is changed, not tipping means that your diligent, cheerful, unobtrusive server who just spent an hour making you happy (along with 20 other people or more in that same hour) just got less wages than will buy a gallon of gas.

Except in California where the tipped minimum wage is the same as the untipped minimum wage & the servers complain about their tips just as much proving that lack of tips isn’t the issue so much as a feeling of entitlement. I hear complaints from people who “only” made $60 in tips in one night. Sounds like some good money to me for not having to get a degree and the student debt that comes along with that, yet the whiners keep whining.

are you kidding me? servers are only paid about $2.50 per hour PLUS TIPS!! Why dont you go live off of $2.50? THAT is why you should tip you ignorant person!!

I’m sure the extra pay for the servers is built into the prices at the restaurant, so for customers who tip, it’s probably not much different in their total bill. I’ve never been a server, so I don’t know what it’s like, but one thing this does is take away a bonus from the really excellent servers. As is the case in every job, I’m sure most servers are average and earn average tips, a few are bad, and a few are outstanding. Why penalize the outstanding servers by getting rid of a financial reward for their excellence?

And I don’t get the point of the no tipping logo. Does that mean to suggest that if you tip the servers, they’ll cut off your finger? LOL

Outside the US, a 10-15% service charge is fixed. Restaurants started seeing it as extra revenue, and eventually servers didn’t get ANY of it. The effect? Everyone gets the same crappy service. The moral? The path to hell is paved with good intentions.

I’m in the UK, and I can assure you that we don’t have fixed service charges in most places. We have discretionary tipping *and* the same minimum wage for waiting staff as everyone else.

A couple friends and I discussed the constant complaints of the employees of the service industry and came to this same exact business model. Glad to see someone else is thinking.

Why not have both? With the current system in place, allowing customers to tip would only make the servers’ lives better. Seems to be more of a marketing piece than care for the servers.

Interesting concept. Customers return based on their experience. This includes service as well as satisfaction with the food and prices. To the extent that service contributes to return customers and overall revenue, there seemingly should be incentive to provide good service.

I have no problem in principle to tipping but it’s got to the point where it’s an expectation regardless of the experience. If playing a role in making sure I return because a person’s take home will be enhanced I’m fine with that.

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