Technically, it’s called a ‘Hospitality Charge’, but we all know it’s mandatory tipping.
Earls .67 in Calgary recently reopened after being closed for renovations and when it did, patrons found an automatic 16% added to their bill as an alternative to tipping. Is it an alternative if you have no choice in the matter?
“Currently, a large portion of that goes to the server and it creates a disparity in the wages from our cooks all the way to the servers,” Craig Blize, Earls VP of operations said on Monday.
“In this new model, what it allows us to do is to redistribute that compensation so 100 per cent of the 16 per cent hospitality charge goes to our highly-trained cooks and it goes to our servers and what we’re testing to see is if it promotes teamwork, promotes engagement – that will hopefully result in a better guest experience.”
Apparently Earls has done a lot of research around the no-tipping model. The same thing is happening in New York and in other major cities in the U.S. Some restaurants in Vancouver and Toronto are also experimenting with the new system.
Servers are welcoming the new system because it promotes a more-friendly environment in terms of tipping. Probably mostly for the people who are glad to not have to deal with tipping. But for the cheap people who never tip, I can’t see them being to happy about this…