Restaurant Creates Tip-free Model by Paying Workers a Living Wage and Sharing Profits With Workers

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A restaurant has created a tip-free model by paying workers a living wage and sharing out the profits.

Zazie, a restaurant in San Francisco, has gone against the norm when it comes to their staff receiving tips.

Zazie has declared its restaurant as a tip-free place to dine after they started to pay their staff a living wage and increased their perks.

Employees across the service industry can often find themselves relying on tips to make up their wages, Upworthy reports.

However, that isn’t the case at Zazie as their new tip-free model means that all staff receive a living wage and paid sick leave, the outlet reports.

They also receive fully funded health and dental insurance, 401(k) plan and paid maternity/paternity leave.

According to Eater San Fransisco, although the restaurant is now tip-free, it has increased its prices by twenty percent to account for it.

Jennifer Piallat, owner of Zazie, told the outlet that she decided to say goodbye to the traditional tipping system in order to create equality in the front and back of house.

It’s a big change to the system, however Piallat told the outlet that she did a lot of math to ensure that nobody would be losing out in the situation.

“The only person losing money is me,” Piallat said. “My accountant doesn’t like it, but I didn’t want to risk anyone being dissatisfied.”

Piallat also told the outlet that most customers have took the price increase well, though she does expect that some may now feel the restaurant is too expensive.

“Maybe they’re the kind of people who wouldn’t have tipped 20 percent in the first place,” she said. “Or maybe they’re just not doing the math. But hey, if that means the brunch wait on the weekends goes down to 45 minutes instead of an hour and half, that’s okay with me.” 

What do you think? Do you think it’s a good idea?