Reporter
Delanie Dickens
A drastic change in server wages has been debated throughout the country for years. Many consumers claim they would prefer that their server be paid a higher hourly wage to compensate for tips but the long-term effects of such a decision would have a devastating impact on workers, consumers, and businesses alike.
One important ramification of this increase is that the price of both product and labor in the restaurant industry would inevitably skyrocket.
“Labor costs would increase and therefore menu prices would increase,” said Dr. Kali Bard, business chair at Crowder College.
Bard believes this spike could “impact profits significantly.”
Under current law, wages for tipped workers is set at a federal minimum of $2.13 an hour. According to the Missouri Department of Labor and Industrial Relations as of this year, the current tipped wage in the state is $4.30 per hour, however, “If the tipped employee does not make up the other half of the minimum wage in tips, the employer is required to pay the difference.”
In order to pay for a massive wage increase, typical food costs could potentially double to account for the usual gratuity. This effect would be especially harmful in communities where local customers can have a major impact on local business.
Proponents of a higher tipped wage suggest that servers are not always guaranteed a gratuity.
“Some customers don’t even leave a dime on the table,” said Payton Waits, education major at Crowder and a former waitress, “If they (servers) are not making minimum wage they should be because no one can make a living if they are only making $4.50 an hour.”
While there is no way to assure that wait staff are properly tipped by every guest, many restaurants are implementing new technologies that encourage guests to leave a fair gratuity.
Recent evidence suggests that most servers and bartenders currently make more than the minimum wage after tips. This is one of many reasons why successful servers continue to pursue the occupation.
According to a recent survey of full-service restaurant operators from the National Restaurant Association, entry-level servers make upwards of $19 an hour in Chicago while more experienced servers make nearly $25 an hour after their tips are accounted for.
Evidence also suggests that, despite some opposition, most guests are willing to leave their server a fair gratuity. A new wage increase in some areas might reverse the progress that wait staff have made over the past few decades.
“Less experienced part-time servers might prefer a minimum wage over tips because they are less experienced and haven’t built up a clientele of regular customers,” Bard argued.
An overall wage increase would primarily affect the majority of servers that do rely on tips, rather than employees who utilize serving for extra cash on the side. A higher wage would also leave these part-time workers with another large check to manage rather than extra spending cash in their pocket.
Restaurant operators could also expect a substantial decrease in competition and performance if wages were raised for wait staff.
“Increased wage might hurt staff retention and recruitment,” Bard said.
The serving industry is a competitive field. Servers must be skilled in handling customer interactions.Their jobs directly affect a restaurant’s public appearance and its ability to produce a steady flow of business. As a server, giving my best performance at work is not only crucial to helping the store succeed, but also determines how much money I make each shift.
A wage hike would devastate the competition that helps many businesses succeed. Servers making the same amount of money would lose motivation to give exceptional service. From any angle, it’s simply not fair for a server working harder to give guests outstanding service to be paid the same as an inexperienced or less motivated coworker.
This competition is particularly important in maintaining a successful business. If wages rose, customers would immediately notice service began to plummet, eventually avoiding these restaurants altogether.
If you’ve never worked in customer service, you might view tipping as an obnoxious burden forced on the consumer for absolutely no reason. In reality, servers, business operators, and even customers, rely on gratuities in significant ways. Tipping helps workers feed their families, owners run a business, and gives customers pleasant dining experiences.
Next time you dine out, remember that customer service keeps most businesses running when other areas fall short, and that a few extra bucks can make a difference in your servers life.
Leave a Reply