Restaurant Issues Ban on Tipping, Compensates by Giving Servers 20% of Sales Per Shift

Packhouse Meats isn’t just known for their food, rather, they’re known for their very public ban on tipping. The Kentucky restaurant opened earlier this year and with it a decree that no server will receive tips in any way, shape, or form. The floor of the establishment even features a giant picture of a hand with the words NO TIPPING in bright red, in case there was any confusing regarding the rule.

According to the Cincinnati Enquirer, owner Bob Conway implemented the policy as he felt it took advantage of the servers. Conway did find a way to make up for lack of tip money going towards his servers, however, by creating a system where servers can make either $10 an hour or 20 percent of their individual food sales each shift. Whichever ends up being higher at the end of the night. The system was designed to give servers a reasonable incentive to make sales rather than depend on what the customer feels like tipping at the end of the meal. Customers who pay with a credit will notice that there isn’t even a line for tips on the receipts.

While the policy was made in the interests of his employees, Conway has received some backlash for it. One particular concern was that it took away any incentive to provide good service once menu sales have been made. Tips, after all, are the safety nets between servers and customers that provide a sense of security with their foods. However, as long as my food arrives hot and my drinks loogie-free, I’m happy.

Picthx Packhouse Meats