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Thread: Gratuity

  1. #151

    Default Re: Gratuity

    Nice breakdown, jeep. I, too, looked at the menu to see their pricing. It does look like quite the uphill climb to be profitable.

    Perhaps they are also depending slightly on the uniqueness and added public exposure by doing this. This is basically uncharted territory for restaraunts in America. Also you will need less management/HR to hire and find people like most restaraunts have constantly due to extremely high turnover. Where it looks like there is a lot of added expense in doing this, there could very well be underlying savings.

  2. #152

    Default Re: Gratuity

    Quote Originally Posted by Anonymous. View Post
    Nice breakdown, jeep. I, too, looked at the menu to see their pricing. It does look like quite the uphill climb to be profitable.

    Perhaps they are also depending slightly on the uniqueness and added public exposure by doing this. This is basically uncharted territory for restaraunts in America. Also you will need less management/HR to hire and find people like most restaraunts have constantly due to extremely high turnover. Where it looks like there is a lot of added expense in doing this, there could very well be underlying savings.
    That is great point on turnover expenses. Another factor is that you may end up with a higher level of staff as they are full time professionals and not students working part time

  3. #153

    Default Re: Gratuity

    Equally, you eventually have to pay those staff. There are plenty of servers in OKC making $40k+/year and more than you would think making upward of $60k.

    How long does it take @ Bar Marco's for the highest paid server to max-out with the company? Is it a wage that a veteran server will sustain, or will that person move on after 7 or 8 years because $50k is their ceiling?

    Also, this is not unchartered territory, even in the US. There have been a slew of restaurants going over to this model. It's still a small minority, but it's a tide that will affect all the boats eventually. It will be interesting to see how it plays out.

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