Restaurant Increases Profits Nearly $7,000 A Week With ‘No-Tipping’ Policy

Alexei Beltyukov told us that Bobby Fry, owner of the Bar Marco decided to join the trend of ditching tips being done by a small number of restaurants. He turned his business into a ‘no-tipping’ policy and chose to pay his employees a higher wage. According to Fry, the results are remarkable.

Fry reports that his business increased from approximately #3,000 a week to nearly $9,000. He also credits his employee’s increased awareness to his water bill and linen charges being nearly cut in half. His says employees now feel they have more on the line and are paying closer attention to the restaurants success. He now providing his employees with a base salary of $35,000 with health care, vacation and company share benefits.

With the increase in his business, Fry also offers bonuses and believes he will be able to increase wages to $48,000 to $51,000 by the end of the year. He has also made other changes to offset costs of paying employees more; however his income is nearly $7,000 more a week.

Fry feels whether a person gets good service or bad, they tip the same amount. If a person gets bad service they just won’t return to the restaurant. He feels paying people below the poverty line is not a good message to send about how you treat your employees. Fry also feels tipping hides how people actually feel about a service.

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