Tipping Case Study

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Higher Wages in Place of Tipping is not Necessarily a Good Thing Last year Joe’s Crab Shack decided to test the no tipping approach. They chose to pay their servers a set wage of fourteen dollars an hour and do away with customary tipping. As a server the idea of never getting “stiffed” again and to get a steady paycheck seems like a dream come true; however, raising server’s wages and taking away the customer’s right to show appreciation through tipping is not beneficial to employees, employers, or the customers. In fact, it would be quite damaging to the whole food/beverage service industry right down to the food vendors. When a business has to increase wages, automatically menu pricing must go up in order to compensate; therefore, discouraging …show more content…
The result of this could mean closing down the business or having to cut back on how many employees they can afford. Not only would this affect the loss of jobs in our community it will also affect the sales of the vendors who sell the food to the business. There are some people who think that raising the server wage and getting rid of customary tipping would be more beneficial to servers. That by doing this it would put an end to discrimination of tipping in the serving world. The server would not have to worry about getting “stiffed” by a customer anymore. Also that it would provide a steady paycheck instead of going week to week not knowing how much you will make. These are people that have either never been a server or never been a very good server. In conclusion server wage should definitely be increased but not at the cost of taking away the custom of tipping. In Virginia the minimum server wage is two dollars and thirteen cents an hour. However minimum server wage does vary state to state. It would be great if we could increase server wage without crippling the businesses. Serving with a smile can be difficult especially when you get “stiffed” by a customer, but in the end it evens itself out with the great tips you get from the other

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