Cara and Cecile Stadler have announced plans eliminate tipping at Bao Bao and Tao Yuan as of December 1st. The restaurants will add a service charge to the bill that is “a percentage of the pre-tax amount a consumer spends while dining.” According to the press release, the “service charge will allow for an increase in pay for all kitchen employees as well as each restaurants management team. Positions that were once before a, ‘tipped’ position will now be paid hourly.”
It goes on to explain,
With the implementation of this system the wage inequality that currently exists between what is referred to as the, “back of the house,”(kitchen) and the, “front of the house,” (tipped employees) will be drastically reduced at first, with the goal to have pay be equal across the board. It will provide a steady year round income for all restaurant employees. The no-tip system will also allow for numerous benefits to employees, including healthcare, vacation time, and parental leave. With these benefits, Cara also plans to invest significantly in her employees through extra curricular experiences, bonus incentives and educational offerings. “We want to invest in people that want to invest in our company for the long term,” says Cara Stadler, “this system just makes sense.”
The Stadler’s new restaurant Lio will also be tip-free when it opens next year.
Update: the Press Herald has published a front page story about this upcoming change at Bao Bao and Tao Yuan.