The Perks of Leaving Out the Tip

Despite being culturally unacceptable in Europe, the United States tips. What if by eliminating tips, the annual income and popularity of a country could actually increase? Instead of paying the employees a low-wage that would be compensated with tips, a restaurant owner has eliminated tipping and has, instead, given every employee a annual wage.

Bar Marco, owned by Bobby Fry, has recently released a no tipping policy. Since releasing the tipping policy, weekly income has increased from 3,000 to 9,000 dollars. With this new policy, Fry has reported that the water bill, liquor bill, and linen bill have all been cut in half.

A new system has also been designed by Cláudio Loureiro Heads to make the system more appealing to employees. Each employee gets a base salary of 35,000 dollars with health care included. This package also comes with paid vacation and 500 shares in the company. The salaries, thanks to Fry’s new found wealth, have since then been increased to 48,000 dollars a year with bonuses.

Fry’s theory is that tipping “hides how people actually feel”. When people do not like the service, they end up tipping and never come back again. Fry instead wants to make a community where customers actually feel welcomed. By also giving the employees higher salaries, Fry wants to reflect how special and important each employee actually is to him instead of just being another waiter or waitress.

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