since its inception in 2017, beak has always been a gratuity-free restaurant, meaning that we do not accept any tips. there are no additional service charges added to the bill, and extra gratuity is not built into the menu prices. all staff, front and back, are paid a starting wage of $20/hour plus $0.50 per six months worked, with the possibility of bonuses and/or profit-sharing. staff are also provided with a free “family meal” with each shift they work (in addition to sizeable discounts on menu items when not working).
our credit card payment systems do not have an option for adding tips, and any cash tips that are left on the table are placed into a pool for donation. at the end of the month, staff members propose various local nonprofits, charities, and benefits that could use the money, and then all staff vote on the recipient. for a list of previous recipients, see the beak community donations.
it is a significant commitment to run a gratuity-free restaurant, and there are many reasons most restaurants do not run this kind of model. however, we have found in our research (see sources at the bottom of this page) and in our own experience, that there are several meaningful benefits to a gratuity-free system, including:
consistency. it’s no secret that wages based on tips can be very inconsistent. in the summer months, when there is more tourism traffic, wages tend to be much higher than in the winter months, which can make budget planning more challenging for employees. additionally, while some diners may tip as much as 25%, others might tip as little as 5%, further contributing to the arbitrary nature and high variability in tipping, resulting in uncertainty in a server knowing how much any given shift will pay. beak restaurant would prefer to demonstrate respect and value its employees with a consistent year-round wage that employees can rely on, independent of the season or the whim of the diner.
higher quality of service. while some may argue that a tipping system incentivizes servers to work harder and provide better service in order to earn a higher tip, in reality this is often not the case. many studies actually reveal that there’s little data to suggest that better service correlates to higher tipping. in reality, when working for tips, it’s too easy for a server to see each new table as an opportunity to collect 20% of their ticket, and the focus can be limited to the dollar value of their order; customers with higher tickets are most often consciously or unconsciously privileged above those with lower tickets (which can lead to inequity across socio-economic classes as well). instead, when establishments like beak provide a consistent wage and remove tipping from the equation, servers can focus exclusively on the dining guests, which leads to a more genuine and personable interaction without the emotional pitfalls common to a tipping system. furthermore, the servers don’t have to worry about feeling judged, and they don’t have to compete with one another for high-dollar tables. the whole team can feel more cohesive with higher morale, and everyone can feel more comfortable in their work environment.
honesty in pricing. tips are often a sneaky way to conceal the final price of a meal by turning over the employer’s commitment to paying the employee onto the customer via a “hidden fee” of sorts. the price diners see on the final bill, once the tip is accounted for, is deceptively higher than the initial menu prices. for example, what we initially think is a $25 meal is, in reality, more like $30 after tip. at beak, we try to be as up-front and honest about the final prices as possible.
equity through combatting sexism. many studies have revealed how a tipping system perpetuates sex and gender discrimination in a variety of ways. in the first place, a tipping system can expose women in particular to sexual harassment from customers. when some diners feel in control of directly paying for part of their servers’ wages, they can start to feel entitled to unwelcomed and inappropriate behavior such as flirting. however, despite this, in tipping establishments, women on average still have historically tended to generate less income from tips than men do. gratuity-free establishments like beak not only fight sexism and discrimination, but they also work to promote equity in pay.
equity through combatting racism. studies also reveal that people of color across america statistically receive less in tips from their diners than do their white server counterparts. similar studies also suggest that there are common perceptions that non-white dining guests on average tip less than their white diner counterparts, which results in an implicit bias. this in turn can lead to guests of color receiving less attention, as well as inequitable and unjust treatment. again, gratuity-free restaurants serve to prevent racism and discrimination by encouraging a more equitable environment for all.
indeed, the tipping system seems so ingrained into the restaurant service industry in america that it may often feel like an inevitable part of the dining experience. however, beak restaurant’s continued success is a testament to the viable alternative of a gratuity-free model, and we hope our commitment to a more equitable and inclusive model inspires our industry peers to consider taking similar action to see us through to a better future.
you can also watch this humorously insightful take on the matter in “adam ruins everything” by adam conover, who graciously dined at our restaurant in 2019 (and appreciated not tipping us!):
a few sources for further reading:
*la times: “there’s little economic justification for tipping. but we can’t stop doing it.”
*vox: “tipping perpetuates racism, classism, and poverty — let’s get rid of it!”
*npr: “the tipping divide: study finds differences in tips by black, white restaurant patrons”
*eater: “the case against tipping in america—the data is overwhelming: tipping encourages racism, sexism, harassment, and exploitation”