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Under the current gratuity system, not everyone at a restaurant is getting a fair shake. Waiters at full-service New York restaurants can expect a full 20 percent tip on most checks, for a yearly income of $40,000 or more on average — some of the city’s top servers easily clear $100,000 annually. But the problem isn’t what waiters make, it’s what cooks make. A mid-level line cook, even in a high-end kitchen, doesn’t have generous patrons padding her paycheck, and as such is, on average, unlikely to make much more than $35,000 a year.
The fact that the people cooking your food often earn less than the people who serve it is a troublesome issue not just for the cooks themselves, but also for their employers — especially in a high cost-of-living city. "We’ve never faced a shortage of talented cooks like we have this year," Meyer told me. "We’re in a day and age where there are more talented cooks than there ever have been, but fewer of them who want to live in New York to start a fine dining career."
The solution to this problem is ostensibly simple: pay cooks more...
A little explanation of how waiters get paid: Most New York servers make per hourly wage set at $5.00. The city’s minimum wage is $8.75, but the five bucks per hour is a legal rate called the "tipped minimum," an amount employers are allowed to pay as long as gratuities bring up wages to be equal to or greater than the full minimum. That means servers’ paychecks are low — a 40-hour week translates to $800 a month, or $10,000 a year — but tips add up quickly, bringing full-time servers to annual amounts that far outstrip the incomes of their coworkers. A server making $40,000 a year is earning the equivalent of $20 per hour.
So just redistribute the tips, right? No luck. Gratuities are the legal property of a restaurant’s waitstaff, and while tip pools are a legal way to divvy up the night’s proceeds among captains, bussers, and bartenders, owners can’t use so much as a cent of those funds to better compensate cooks and back of house staffers.
Starting in January, the state tipped minimum will go up 50 percent to $7.50. By comparison, the full minimum, the lowest pay earned by cooks, is only going up by twenty-five cents, to an even $9. It’s a move that will surely help out waiters working outside of the radius of the city’s tonier dining rooms, where the tips are more modest, but in many Manhattan and Brooklyn restaurants, it will only exacerbate the pay disparity between the kitchen and the dining room.
This won’t be a semantic game where a tip is just called by another name, and still goes only to the service staff’s bottom line
By ending tipping right now, and paying everyone more equitable hourly rates or salaries, Meyer can avoid almost all of these issues. But that’s not the only reason to terminate the gratuity system, and quickly. Restaurants in New York City are facing all sorts of new margin pressures: new federal regulations make more employees eligible for overtime and a state sick leave law now requires up to 40 hours of paid leave per employee. Most pressingly, a new state wage ordinance guarantees city fast-food workers a minimum wage of $10.50 as of December, which will climb to $15 in three years; this means that if non-fast-food operators don’t raise their employees’ wages, they’ll face the possibility of an exodus of staff to the greener pastures of McDonald’s and Burger King.
(That last possibility is particularly not okay by Danny Meyer. "Fine dining has an obligation to lead fast food in everything," he said. "Whether it’s how we source ingredients, how we hire, how we train, how we design, how we interact with our communities — we can’t have a situation where we are asking someone to pay $40,000 to go to the Culinary Institute of America to then work for $12.50 per hour, when they could work in fast food for $15.")
Perhaps the restaurants you've worked in didn't face the same challenges regarding pay inequities between servers and chefs as the higher end ones mentioned in thia article. But it appears to be a serious issue for higher end ones in certain markets.