Blue Plate [restaurant chain] responds to minimum wage increase by dipping into servers' tips

[geardaddy]

http://blogs.citypages.com/blotter/2014/08/blue_plate_responds_to_minimum_wage_increase_by_taking_tip_money.php

On August 1, Blue Plate Restaurant Company notified employees at each of its eight locations (including the Freehouse, the Lowry, and Longfellow Grill) that as per Minnesota's incremental minimum wage increase, wages would indeed be raised by $0.75 per hour.
The good news didn't last. After telling employees that they "want [the raise] to be visible in the warm welcome and bright smile you bring to our guests," Blue Plate explained that due to increased expenses resulting from the raise, the company will take 2 percent of all tips paid with a credit card in addition to taxes servers already pay, reports the Star Tribune.

Blue Plate will take a $1.25 million blow as a result of the increase coupled with rising health care expenses, but with eight bustling Twin Cities restaurants, it's likely that the minimum wage increase barely makes a dent.

Charging servers a percentage of their tips is nothing new for Parasole Restaurant Holdings (owners of Burger Jones, Chino Latino, Manny's Steakhouse, and more), who have engaged in the practice since September 2011, and one Twitter user claims that Psycho Suzi's charges servers a similar fee. Last week, City Pages wrote about Stillwater's River Oasis Restaurant after they started charging customers a minimum wage fee of $0.35 on each bill. Customers have since retaliated by bombarding Oasis' Yelp page with negative feedback.

In the past few days, local restaurant owners and foodies alike voiced their disdain on Twitter for Blue Plate's new practice. We've gathered some of the highlights: (at link)

[myrna minx]

1. Arg! I practaclly live at the Lowry. This is very bad news.

[geardaddy]

3. Did you see this?

http://blogs.citypages.com/blotter/2014/08/stillwater_cafe_now_charging_customers_a_minimum_wage_fee.php

I'm not sure The Lowry is adding the fee so blatantly on the bill, but they are part of Blue Plate.


http://twitter.com/ChrisMorse22/status/495639192463224832/photo/1

[myrna minx]

6. Can you believe it?

Such theatrics over 35 cents.

I'm really disappointed in Blue Plate.

[EleanorR]

13. I'm not seeing it

Where does it say the Stillwater restaurant is part of the Blue Plate Co?

[raging moderate]

2. Everybody: Give the tips separately, and in cash.

This was discussed earlier this week somewhere on this website. Many restaurants have been doing this for a long time. Some DUers were suggesting that tips should be given in cash, not on the credit card.

[hifiguy]

7. Excellent idea.

[geardaddy]

9. That's a great idea. n/t

[TorchTheWitch]

18. it won't matter

Cash tips are usually pooled, and management can still get their sticky fingers on it. And they do.

[global1]

4. Sounds Like A Good Reason For Me Not To Patronize The Blue Plate Restaurant Company......

again backward thinking on their part to institute this 2% cut will backfire on them as people stop coming to their restaurants. Unfortunately the servers get caught up in the middle. So if you do patronize Blue Plate Restaurants leave a cash tip.

[geardaddy]

5. I plan on boycotting them anyway.

One of their restaurants has publicly added a "minimum wage fee" on all tickets so that the customers know why the prices are going up.


http://blogs.citypages.com/blotter/2014/08/stillwater_cafe_now_charging_customers_a_minimum_wage_fee.php

[Lochloosa]

10. Boycotting only hurts the servers more. Give cash for the tip.

Then call the manager and without identifying the server explain what you did and why.

[Orsino]

12. Or builds demand at other restaurants where servers are paid better.

The way we do when we, say, patronize union shops preferentially.

[Lochloosa]

15. Touché

[Lurks Often]

16. The manager will know exactly who the server was

Servers at busy restaurants are assigned blocks of tables to work, partly because it is more efficient that way and partly to make sure the work and the opportunity for tips is divided as evenly as possible.

[onethatcares]

8. the real reason prices are going up

is because the hedge fund that owns that chain of restaurants is greedy, greedy, greedy.

they're too fucking cheap to take a 10.00 cut in their monthly dividend probably.

if I lived near one or patronized one, I'd stop in and tell them "no more money from me you cheap bastages"

[joeybee12]

11. But, but, but...corporations are people, too, and they have families to feed...

Wait, no they don't. Phuckers

[Justice]

14. Department of Labor website

"Credit Cards: Where tips are charged on a credit card and the employer must pay the credit card company a percentage on each sale, the employer may pay the employee the tip, less that percentage. For example, where a credit card company charges an employer 3 percent on all sales charged to its credit service, the employer may pay the tipped employee 97 percent of the tips without violating the FLSA. However, this charge on the tip may not reduce the employee's wage below the required minimum wage. The amount due the employee must be paid no later than the regular pay day and may not be held while the employer is awaiting reimbursement from the credit card company."

http://www.dol.gov/whd/regs/compliance/whdfs15.htm

[tblue37]

17. Is that even legal? nt

[WillowTree]

19. See #14