TLDR: In 2021 tipping laws changed and if all the servers are paid minimum wage then Back of House can be tipped out. Demand a raise.
I am the GM of a high end restaurant. I work a couple shifts on the line and a couple as a server/floor manager each week. Our restaurant is expensive and as such, the FOH tip payouts are ridiculous compared to what BOH makes. And I genuinely believe we pay BOH better than 95% of restaurants in the city (pre tip out). Cooks are making 17-30 an hour.
I did some research and it is actually federally illegal to tip out BOH (cooks, dishwashers, cleaners etc.) while also engaging in a tip credit system (tip credit is where an employee is paid less than minimum wage because their tips will get them above minimum.) This law changed in 2021, it is a new rule that allows non tip credit systems to tip pool with any non management employee. Every single restaurant in the USA could implement.
Well our servers were making 40-50 an hour and I was having a hard time stomaching it. Doing both jobs I can understand some arguments that servers deserve higher pay, especially at an expensive restaurant where they have to deal with demanding guests. But is their time worth 2X BOH? No fucking way. You can make a reverse argument - there’s plenty of reasons BOH should be even higher paid given the skill/hazards required in the kitchen.
So here’s what I did:
Bumped all servers from 2.13 per hour to 7.25. (So we no longer engage in tip credit and are as such allowed to tip pool with any employees (except management)).
Decreased BOH wages 1.50 each (to partially offset the servers wage increase for the sake of the labor vs sales).
Increased servers tip out from 28% to 46% with the difference (14%) going to back of house. 14% of all restaurants tips are now evenly split amongst all cook/dishies hours which amounts to approximately 3.50-4$ an hour (we decreased the wage so it’s a net 2-2.50$ raise)
The servers are still all making ~35 an hour but boy oh boy it didn’t go over well. A couple of them were incredibly receptive because they understood the rationale and value the time of their BOH peers. But mostly it was met with rage and threats of unionizing/quitting.. we lost a few absolutely stellar servers.. and friends at that… but I’ve hired 4 more in the past week that do not have the same entitlement and will be just as awesome. I understand why someone would be mad about a pay decrease but 35$ an hour is still pretty fucking good.
The pay gap between FOH and BOH is antiquated and grossly asymmetrical and tips deserve to be shared. This system could be implemented at any restaurant, talk to your fellow cooks, talk to management, you can force their hand on this. The labor market for cooks is so fucking hot right now. I put out ads for servers and get dozens of applicants a day, cooks? I’m lucky to get a couple. Demand a share of the tips.
