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| quote: | Originally posted by Cro_Addict
So why not just raise their pay to regular minimum wage? Or say even a little more. Raise their pay by 20% so that will make their wage $10.68. Bringing your costs from $10000 to $12000 plus the insurance/benefits...so say $13000. So just under 29% of your sales. |
Think about what you're suggesting though. As I pointed out in my original reply to Joe, the 15% figure for tips has no significant relationship to the difference between pre-tip and post-tip income for servers. Tips are calculated on sales, not salaries.
If salaries for wait staff were increased by 20% but tips were eliminated, the majority of the staff (at least the competent staff) would walk, immediately. Nobody would do that work for minimum wage, it's too stressful, might as well take some equally low-paying but also low-responsibility job at a coffee shop or fast food joint.
At some point every business owner realizes that you have to offer at least the potential for competitive salary/benefits if you want to attract good people. Imagine telling a staff of salespeople that they'll no longer make commissions, but hey, it's all good, because their salaries are going up by 20%. Think most of them would stick around?
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