How a No-Tipping Policy Helped This Restaurant Triple Profits in 2 Months

originally posted by: Snarl

originally posted by: onequestion

originally posted by: Snarl
Sorry guys.

Denying Ignorance Is All

What's that have to do with anything?

Did'ja even bother reading the reviews. It's a trendy place. It's overpriced. The service ain't that great.

That's what happens when you change a business model that has worked for Centuries.

So what?

Does that mean that all businesses who pay their employees are guaranteed to have a low quality product or bad service?

No it doesn't.

originally posted by: peck420

originally posted by: Snarl
Did'ja even bother reading the reviews. It's a trendy place. It's overpriced. The service ain't that great.


That's what happens when you change a business model that has worked for Centuries.

That is what every restaurant's reviews look like...when you 'Sort by Lowest Rated'...as your link was set.

Wow lol. Why am I not surprised someone went to this length to turn a positive story negative that doesn't tow the tried and broken capitalism line.

Kudos to the owner for apparently doing the unthinkable:

Turning a profit while making the workers happy. I thought that type of nonsense would crash the economy?

Well done to the owners, I am not surprised that they are profiting from this model. When the employees actually have a stake in the success of the business, they work smarter and harder - because if the business does well, they do well also.

Quite logical really, and good for staff morale/customer relations all around.

This guy just implemented a "stealth" German style "Work Council" and no surprise, Entrepreneur Magazine, makes no mention of other countries where this EXACT same kind of arrangement, between workers and management, is also done and has be done for decades.

Do you want to know why it can't be called a "Work Council" in the United States? Because "Work Councils" are illegal unless they are accompanied by a recognized Labor Union, see the case Electromation, Inc. v. NLRB (1994).

In fact, he may be in violation of labor law and doesn't even know it, unless the business is classified as "employee owned" or a "co-op":

The NLRB addressed the legality of "employee involvement" or "employee participation" organizations in Electromation Inc., 309 N.L.R.B. No. 163 (1992), aff'd, Electromation Inc. v. NLRB, 35 F.3d 1148 (7th Cir. 1994). There, a nonunion company decided to establish employee action committees after employees expressed their dissatisfaction with changes made to the attendance bonus/wage policy. The company established five committees with managers and employees to develop solutions to five key issues: (1) absenteeism/infractions, (2) no smoking policy, (3) communication network, (4) pay progression for premium positions and an (5) attendance bonus. Employees volunteered for committees and were allowed to conduct meetings on company property during paid time. Management members set the meeting agendas and decided whether to submit team proposals to upper management for approval. A majority of the NLRB held that these action committees violated the NLRA.

The servers are getting screwed. A restaurant with those prices if they aren't making 50-60k they took a HUGE pay cut. What you see as a good thing is probably pretty bad for them. I live in a very low wage state and my friend clears way more than that.