Coffee Shop In Salt Lake City Eliminates Tips and Increases Salaries; Customers Say Welcome Change

A coffee shop in downtown Salt Lake City is running an experiment to cope with the tipping fatigue and negative views of the tipping culture in the US. Three Pines Coffee has decided to eliminate tipping and its owner, Nick Price said as a consumer, he experienced tipping fatigue too, in a KUTV report. Price thinks tipping is outdated and certainly not the best way for his employees to earn a living, thus, he has abolished tipping and increased their salary instead.

Why Did Three Pines Coffee Eliminate Tipping?

According to Price, during the busy summer times, their business sees an increase in tips and the income for employees is pretty good. However, during the winter times, the tips run pretty low causing a fluctuation in income.

Thus, Price thought that it wasn’t fair for his employees to make less money during the slower winter months. So he abolished tipping entirely and raised the hourly pay of his employees from $8 to $18.

How Does The Coffee Shop Manage Finances?

As per the KUTV report, Three Pines Coffee raised the prices of all of its items by approximately one dollar to offset the elimination of tips. Thus, the tip is now essentially included in the prices of the items and it is displayed on the menu board of the shop.

One of the baristas, Everett Hamby, said that he initially felt discomfort with the new policy but he now appreciated his steady income. "I know how much I'm going to bring home. It's very comforting because tips can be very volatile," he said in the report.

Hamby further added that he often felt awkward to ask customers for tips when they used digital forms or credit cards for payment.

The experiment of the no-tipping policy has been running for about 30 days, and so far the transition has been successful, according to the owner. Price has decided to evaluate the long-term viability of the policy for over 90 days after which he will decide if it can become permanent.

What Do The Customers Think?

The report also mentioned comments from one of the customers of the coffee shop, Pickle Williams. She said that she supports the no-tipping policy and is happy to pay a bit more for her coffee if it ensures a fair wage and steady income for the baristas.

Tipflation and Tipping Fatigue In The US

Recently, a survey conducted by Bankrate revealed that about two-thirds of Americans have developed a negative view of tipping, especially towards payment prompts with predetermined tipping options.

This has affected workers across the US as the minimum wage for tipped employees is lower than the standard minimum wage in several states. Thus, employees rely on tips for their income, and the negative view of citizens towards tipping has put their financial well-being at risk.

Thus, experiments like that of Three Pines Coffee is a positive step towards solving the problem of tipflation and tipping fatigue. Price expressed that there is a potential for industry-wide changes and he is looking forward to seeing if other businesses join the suit. “I think it's the future of our industry," Price said.