New York Sushi Restaurant, Sushi Yasuda, Eliminates Tipping Because It Pays Waiters A Salary With Benefits

  • metta

    Posts: 39140

    Jun 11, 2013 6:07 PM GMT
    New York Sushi Restaurant Eliminates Tipping Because It Pays Waiters A Salary With Benefits

    "Most restaurants use tips as an excuse to pay their servers less, even though surveys find employers often duck the federal requirement that only allows them to pay below minimum wage if tips make up the difference. As a result, servers’ poverty rate is nearly triple that of the entire workforce. They are also almost twice as likely to rely on food stamps than the general population."


    http://thinkprogress.org/economy/2013/06/11/2134891/new-york-sushi-restaurant-eliminates-tipping-because-they-pay-waiters-a-salary-with-benefits/
  • Posted by a hidden member.
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    Jun 11, 2013 6:28 PM GMT
    My partner & I tip very generously, above the average. It results in our being pampered and indulged in the places we frequent. OK, so we buy our loyalty and service, but it works.

    And we really do like our servers. We'll socialize with them outside their workplace, even have some over to our place to be our own guests, where it's we who serve them, so we're not really class snobs in that regard.

    But I also understand the thought inherent in this article, that we're subsidizing and covering with tips the pay shortfall the restaurant & bar owners should be paying their employees.

    But if the servers worked on salary alone, without tips, would their performance at the table suffer? What's their incentive to serve us cheerfully & well, if their income is pre-determined, almost no matter what they do?

    Plus it really is a 2-way street. I often ask a server for recommendations, and expect a competent one to guide me in my menu choice. I'm almost always pleased with their suggestions, and tip them accordingly. If they're working on a fixed salary, without tips, would I get that same level of individual service?

    I dunno, and so I'm undecided on this. I want servers to have a good income. I'm simply not sure what's the best way to make that happen, and yet still give me the proper service I expect in a restaurant or bar, and am willing to pay to have.
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    Jun 12, 2013 12:29 AM GMT


    Hmmm....I rather like this.

    Hamburger with the works but hold the mustard, add jalapenos, butter no margarine please, multi grain bun, and toasted please, one cheese slice melted and one not, etc etc etc.

    OR

    A plate of lobster tails.

    The first will be a lot of work, with a small tip. The second will be minimal work, with a huge tip. I've never liked the way that worked.

  • Posted by a hidden member.
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    Jun 12, 2013 12:33 AM GMT
    I've complained about tipping since my first time I ever had to tip. It's about time a restaurant can pay its employees a livable wage without relying on tips.
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    Jun 12, 2013 12:55 AM GMT
    This isn't so great.

    That tip money was cash, i.e. tax free. And in an extremely high tax state like New York, and in an extremely high tax city as New York City, chances are the people will actually net LESS cash than under the old system.

    And as for "now they get health insurance paid by their employer" - well, they would have had to have gotten health insurance paid for by SOMEBODY (maybe even them) now that the Affordable Care Act is about to go into effect.
  • metta

    Posts: 39140

    Jun 12, 2013 12:59 AM GMT
    chefBH saidThis isn't so great.

    That tip money was cash, i.e. tax free. And in an extremely high tax state like New York, and in an extremely high tax city as New York City, chances are the people will actually net LESS cash than under the old system.

    And as for "now they get health insurance paid by their employer" - well, they would have had to have gotten health insurance paid for by SOMEBODY (maybe even them) now that the Affordable Care Act is about to go into effect.


    So are you saying that it is better to keep it the way it is?: ". As a result, servers’ poverty rate is nearly triple that of the entire workforce."
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    Jun 12, 2013 1:02 AM GMT
    metta8 said
    chefBH saidThis isn't so great.

    That tip money was cash, i.e. tax free. And in an extremely high tax state like New York, and in an extremely high tax city as New York City, chances are the people will actually net LESS cash than under the old system.

    And as for "now they get health insurance paid by their employer" - well, they would have had to have gotten health insurance paid for by SOMEBODY (maybe even them) now that the Affordable Care Act is about to go into effect.


    So are you saying that it is better to keep it the way it is?: ". As a result, servers’ poverty rate is nearly triple that of the entire workforce."


    Well, we really don't know about these particular people at this particular Sushi restaurant do we? The article is very short on specifics when it comes to just how much "salary" they are getting paid.

    What I am saying, and what I said, is that chances are the people will actually net LESS cash than under the old system for the reasons I cited.
  • metta

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    Jun 12, 2013 1:09 AM GMT
    ^
    Those statistics are the restaurant industry statistics, not the statistics for Sushi Yasuda.
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    Jun 12, 2013 2:17 AM GMT
    metta8 said^
    Those statistics are the restaurant industry statistics, not the statistics for Sushi Yasuda.


    Right, but the story is about Sushi Yasuda, yet you are citing industry-wide statistics. Are we talking about the restaurant industry as a whole, or Sushi Yasuda?

    I thought the article was about Sushi Yasuda, which is why I confined my comments to Sushi Yasuda and pointed out that:

    a) The article doesn't tell us what this "salary" amount is.

    b) That because this is a restaurant in New York City, it is highly likely that the waiters will end up with LESS money in their pockets as a result of not getting tips and instead getting a salary.

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    Jun 12, 2013 2:16 PM GMT
    chefBH saidThat tip money was cash, i.e. tax free. And in an extremely high tax state like New York, and in an extremely high tax city as New York City, chances are the people will actually net LESS cash than under the old system.


    OK, well, it's NOT tax free. The server may not report it, but that's tax fraud.
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    Jun 12, 2013 2:38 PM GMT
    showme said
    chefBH saidThat tip money was cash, i.e. tax free. And in an extremely high tax state like New York, and in an extremely high tax city as New York City, chances are the people will actually net LESS cash than under the old system.


    OK, well, it's NOT tax free. The server may not report it, but that's tax fraud.


    Welcome to the real world of working in a restaurant. Cash tips are not reported as income. So the point being that a "salary" may not be as good as what they had before.
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    Jun 12, 2013 2:44 PM GMT
    Aristoshark said
    chefBH saidThis isn't so great. That tip money was cash, i.e. tax free.

    Um, hardly. Servers are expected to pay taxes on tips, and servers as a career group are among the most frequently audited by the IRS due to their well-known aversion to, er, accuracy in reporting.


    Nobody I've ever worked with mentioned to me that they've been audited, but I know that doesn't prove anything. Has anyone at the restaurants you have worked at been audited?

    Anyway, the larger point which everyone seems to be avoiding is that these people may actually be worse off on "salary" than before.
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    Jun 12, 2013 3:32 PM GMT
    chefBH said
    Aristoshark said
    chefBH saidThis isn't so great. That tip money was cash, i.e. tax free.

    Um, hardly. Servers are expected to pay taxes on tips, and servers as a career group are among the most frequently audited by the IRS due to their well-known aversion to, er, accuracy in reporting.


    Nobody I've ever worked with mentioned to me that they've been audited, but I know that doesn't prove anything. Has anyone at the restaurants you have worked at been audited?

    Anyway, the larger point which everyone seems to be avoiding is that these people may actually be worse off on "salary" than before.


    Chef, for some reason you appear to think none of us know restaurant owners or workers.

    Admitting to taking advantage of a tax loophole is one thing, admitting to fraud quite another.
  • Webster666

    Posts: 9217

    Jun 12, 2013 9:05 PM GMT
    I LOVE THIS !