We are considering a restructure of our waitstaff wages, bonus scheme, and tip out. Here is the relevant data.
- We are a fine dining restaurant open for breakfast, lunch, and afternoon tea (no dinners)
- Regular waitstaff make $7.25 per hour wage, plus tips.
- Tips typically run about $350 per day. This about is pooled and split between waitstaff on a prorata basis (based on number of hours worked)
- In addition to wages and tips, we give bonus to managers. This abouts to about $250 per month each.
- Owner has migrated from kitchen functions (e.g., cooking, baking, cake decorating) to working the front of the house. That include meeting and greeting customers, answering phones, busing tables, and handling merchandise sales. However, owner retains no tips.
- Historically, we have asked waitstaff to tip out to the Kitchen staff. This has amounted to roughly $50 of total pooled tips (or $25 per wait staff).
Because the Kitchen staff have become more productive (measured in terms of dollars we pay in Kitchen wages v.s., gross income from meal receipts), we are proposing to increase tip out to the Kitchen. The reason for this is two fold. 1) while the front of the house wages have gone steadily up, the kitchen as actually decreased - all during an increase in gross revenue. 2) To provide incentive / reward to the kitchen for providing quick order turn around. Waistaff can see that tips are directly proportional to quick service which is contingent on kitchen performance. If they don't get the kitchen performance, they lean on the kitchen very quickly. Kitchen, receives reward for good performance.
The question: Does this sound fair? Any flaws in this plan that are obvious that I might have missed? Any better ideas?
Queen Mary Tea