Waffle Now Case Study

Waffle Now is a restaurant that has, until now, chosen to pay their employees below minimum wage so that their servers can make up for what they do not revieve from the company in tips. The idea behind this is that the need for good tips from their costomers will create an incentive for employees doing well at their jobs. This is a plan that only works in theory, as there must always substanital tips from cusomers to fully make up for what the workers are not paid. Recently, the Waffle Now employees have found that the wages they recieve are simply not enough for them live on alone. Not only is this true, but they have also found that there is research on how this incentive-based tipping system is systematically broken, outside of Waffle Now and that other states have already begun to move away from tipping in its entirety.
To begin, It has been shown that the tip system does not, on average, give the workers a standard minimum wage. Due to the current increase of cost of living, the workers have found this increasingly difficult. She makes this point saying that, despite minimum wage increasing, tips have stayed the same. Besides this, I am aware that, from personal experience, many people do not tip as much as they ought to, mainly because there is a lack of understanding about this system. In general, the …show more content…
Tips do not usually work out in they way they are intended and instead, leave the employees without much extra earned at the end of the day. She says that tips are almost never based on how well the servers are doing at their job. Customers rarely change the amount of their tip substantially, they only ever really increase by 1.5%. This meager sum does not provide enough money for the employee's work and does not provide enough of a living wage for someone in this