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No-Tip Policy at Restaurant

Discussion in 'BBS Hangout' started by SacTown, Mar 19, 2014.

  1. SacTown

    SacTown Member

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    I believe this is the future.

    Noodles CEO dishes on no-tip policy, minimum wage

    http://www.cnbc.com/id/101501060

    No need for your internal Emily Post to debate about the merits of 15 percent or 18 percent here. At Noodles & Co., the recommended tip is nothing.

    "Respect doesn't cost you anything," said Noodles CEO and Chairman Kevin Reddy in an interview. "Being nice doesn't cost you anything, and we don't really feel that folks should have to pay something additional for us to appreciate that they're choosing us over another restaurant."

    The no-tipping policy also plays into an emphasis on relative value at Noodles, which has about 380 locations in 29 states and Washington, D.C., that serve a variety of noodle and pasta dishes, he added. The average meal sets diners back about $8—a price tag that's more expensive than fast food giants, like McDonald's or Wendy's, but less so than casual dining chains, like Darden Restaurants' Olive Garden or DineEquity's Applebee's.

    Like competitors Chipotle and Panera Bread, guests order and pay at a counter. Noodles workers then deliver meals to tables.

    (Read more: McDonald's hit with lawsuits over 'stolen' wages)
    "We don't want our guests to feel we're trying to upsell them," Reddy added. "We'd rather have them feel we'd rather upserve them than upsell them. That's why we're really cautious even about the price increases we pass on."

    Reddy stressed that the recommended policy isn't about denying team members tips since the policy means that Noodles must pay workers enough to make sure that it's not an issue. (He also mentioned that some customers insist on tipping despite the policy, which workers will then accept.)

    While the company did not share payroll data, Noodles mostly pays workers above minimum wage, Reddy said. Since its pay is generally higher, potential hikes in the minimum wage rate won't affect the business too much, he added.

    In recent months, the federal minimum wage has been a hot-button issue. Last month, President Barack Obama boosted the minimum pay for federal contractors hired in the future to $10.10 per hour. He's also voiced his support for the federal level for all workers to rise to $10.10 from the current $7.25. Separately, organized protests of fast food workers have lobbied for a jump to $15.

    If minimum wage rose much higher than expected, the move could reset expectations across the industry, Reddy said.

    Although he said he supports the idea of trying to pay people fairly, he doesn't think there's an easy answer to the minimum wage debate.

    "I'm not opposed to things that help folks, but I'm also very pragmatic and I'm frustrated at times that good intentions don't get executed well and that there is waste in our government," he said. "So to me, I think as a society we should help people and set up a system where people can be successful and have high self-esteem."
     
  2. Mr. Brightside

    Mr. Brightside Contributing Member

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    Not sure if it is just me, but I've never tipped at Mcdonald's.
     
  3. Dairy Ashford

    Dairy Ashford Member

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    I made a sit down order there once and brought a Barron's to read. I got up for maybe five seconds to go to the bathroom; came back and my order number thingy was removed, and some Kravitz-looking dude behind the "bar" was reading my paper. I leave cash out of habit and to debunk certain stereotypes, so I guess that money's always gone to the managers.
     
  4. Ubiquitin

    Ubiquitin Contributing Member
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    Tip the server at McD's. Tip them like 25 cents.
     
  5. Haymitch

    Haymitch Custom Title
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    For every employee that doesn't add fecal matter to my burger, I tip a dollar.
     
  6. Dairy Ashford

    Dairy Ashford Member

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    Incidentally, we could totally use more of those franchises around.
     
  7. TheRealist137

    TheRealist137 Member

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    tipping is dumb, charge me higher prices at restaurants and stop relying on my tips
     
  8. Dairy Ashford

    Dairy Ashford Member

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    Restaurants are actually very much like farms in that they provide a critical food supply service in large cities; which don't always have the free space to house full grocery stores, but they are also extremely risky and have high regulatory overhead. Like farms they really can only afford to consistently pay less than minimum wage; so tipping bridges the gap, particularly in larger cities with more expensive rent.
     
  9. HookemHorns1250

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    Eh, I usually try and tip on the higher side if they do a good job. What's the "Normal" rate these days? First it was 15 percent, but it seems it's gravitated towards 20.

    I just have a difference of opinion on who should be and who shouldn't be tipped. I can't tell you how many times I've gotten dirty looks or fussed at at Sonics for not tipping. Look, you came out and brought me my food. Thank you...but you didn't wait on me, you didn't make back and forth trips to make sure my meal was well cooked.

    That being said I do have friends that don't tip at all no matter where we go, and that just drives me absolutely insane. No offense to anyone here if they do that I don't judge others outside of who I spend my time with. But to not tip at all, bleh.
     
  10. redefined

    redefined Contributing Member

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    If you can't afford to pay your workers minimum wage, you shouldn't be in business, period. I don't care what industry you're in. As mentioned above just raise the price of your meal by fifty cents if needed to cover that gap. There is NO reason a waiter should be earning more than min. wage.
     
  11. bigtexxx

    bigtexxx Contributing Member

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    A lot of times I won't tip, but will fist bump and tell them "I'll get ya next time"
     
  12. supdudes

    supdudes Member

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    Considering the origin of the word tip (originally conceived as an abbreviation for "To ensure Promptness"), it actually makes more sense to tip at MacDonald than some high-end restaurant.

    Also, Waiters are paid to wait tables. Other than a command of language, and perhaps enthusiasm, I don't really see how and why they deserve extra. Of course, nothing is as dumbfounding is tipping a taxi driver though.
     
  13. Jontro

    Jontro Member

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    If only strip clubs have this policy.
     
  14. bigtexxx

    bigtexxx Contributing Member

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    ? if that were true, why wouldn't it be a tep?
     
  15. SirCharlesFan

    SirCharlesFan Contributing Member

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    I'm not sure what the point of this article is. :confused::confused: I used to live in an area w/Noodles restaurants area and it never even crossed my mind to tip at this place. And it's not that I am stingy, I am usually a very generous tipper.

    This is like the CEO of Panera Bread or Cosi coming out and saying you don't have to tip at their establishments.
     
  16. bobloblaw

    bobloblaw Contributing Member

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    He meant to type "To Insure Promptness/Performance" which is still wrong. The word "tip" has a specific meaning and can be used outside of service (e.g. "Here's a tip for you. Get lost").

    Anyway, refusing to tip at restaurants where employees are dependent on tips is stupid.
     
  17. what

    what Member

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    I would quit that job immediately.
     
  18. Lurch

    Lurch Live Wilder.

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    Tips are earned. Not automatic. Don't tell me a sob story about living off of tips. You chose to work at a restaurant.
     
  19. VanityHalfBlack

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    I tip because it gives them the incentive to put a little more effort into their work. I tip big too, like 50%
     
  20. FishBulb913

    FishBulb913 Contributing Member

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    Unless your service is just horrible, I do not understand how some people are ok with not tipping. I don't consider myself a good tipper at all but good lord, give them something.

    I have a buddy who the moment he sits down at a restaurant he starts looking for reasons to deduct from the tip. "Oh they didn't give enough ice, thats coming out of their tip" "Did she just look at me funny?! that's coming out of her tip" give me a break.
     

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