A few months ago, we learned about this Philadelphia restaurant that banned tipping and is paying its employees a decent livable wage. The good news is that it not the only one.
Bar Marco, a Pittsburgh restaurant, joined the small but growing group of restaurants who are doing the right thing by paying their employees a livable wage and not having them rely on tips. All employees at Bar Marco get a base salary of at least $35,000, health care, paid vacations, 500 shares of the company, and bonuses (based on profits).
Bobby Fry, the restaurant’s founder, says that this approach has made his employees work harder and waste less. Fry told Entrepreneur, “Our water bill was cut in half, our linen bill was cut in half, our liquor inventory was lean.” Since getting rid of tips and adjusting its employees compensation, profits at Bar Marco went from about $3,000 per week to $9,000 per week.
A portion of these profits go back to the employees in the form of bonuses, therefore annual salaries at Bar Marco are expected to reach $48,000 to $51,000 this year.