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The History of Tipping in Restaurants: The Complicated Past, Present, and Future

7 Shifts

When you dine out at a restaurant, you tip your server. A guest's tip subsidizes wages for most of America's restaurant workers. In most other parts of the world, tips are not expected—and in some cases, it's considered rude to tip. History of Tipping: How did gratuity become integral to our restaurant culture?

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Our Wage Models are Broken

7 Shifts

The institution of tipping and the existence of the sub-minimum wage is heavily rooted in slavery , and has led to decades of underpaying a workforce that is majority black, brown, and female. In other words, tips can legally be split between kitchen and waitstaff. This isn’t an easy conversation to have.

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Q1 2022 Legal Update

Modern Restaurant Management

District Court Denies Restaurant Industry Request to Halt New Tip Credit Regulations : On February 22, 2022, a Texas district court denied an emergency motion for a preliminary injunction brought by the Restaurant Law Center and the Texas Restaurant Association. Proposition 12 was passed by California voters in 2018 as a ballot initiative.

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New & Notable: TEAM Schostak Celebrates 40, AI in Food Service and Beachy Tech

Modern Restaurant Management

.” 7shifts Launches Tip Pooling. 7shifts launched a new solution designed to help operators and managers streamline the complicated and time-consuming tip tracking and distribution process. " Tip Pooling has been designed to offer three benefits to operators and managers: Create and customize tip pools with ease.

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What Now? COVID-19 Survival Guide for Restaurants

Modern Restaurant Management

Restaurant Workers Community Foundation was founded in 2018 to advocate for gender equality, racial justice, fair wages, and healthy work environments in the restaurant industry. Click here to read more tips to help your business get through the pandemic from a financial point of view. and Canada. Sign up here.

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[Updated for 2023] The State-by-State Guide To Tip Pooling Laws

7 Shifts

But one can't deny that tips make up a majority of restaurant workers' take-home pay. One of those ways is tip pooling, where all tips are collected into one “pool” and re-distributed back to employees. One of those ways is tip pooling, where all tips are collected into one “pool” and re-distributed back to employees.

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State of the Industry and More Restaurant Research

Modern Restaurant Management

Among the results: Tipping culture is here to stay, in fact 48 percent of card or digital payment transactions at QSR restaurants included a tip – up 11 percent since 2020. The average Valentine’s Day dinner with food, drinks, and tip cost diners $121 in 2023. San Francisco only saw approximately 2 percent growth.

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