NORFOLK, Va. (WAVY) — A Norfolk restaurant is leading a “frank” discussion about tipping, as it has decided to add a 15% automatic tip on all dine-in orders and a 5% charge on all takeout.
According to a social media post, they are aiming to being the new gratuity policy Aug. 1.
Perfectly Frank ODU explained that while people are still eating out, they are tipping at lower levels.
“The past couple of years I’ve noticed people just stopped tipping,” said Perfectly Frank owner Tarah Morris. “I think that inflation has hit people hard and they’re cutting back. They’re not cutting back on coming out to eat, they’re cutting back on tipping.”
She understands tip fatigue, but said her employees do more than wait tables.
“They’re prep cooks, they’re cashiers, they’re bussers, servers, dishwashers, hostess, expediter,” she said.
Normally, employees don’t leave until they graduate college, but that’s changed.
“Over the last couple of years I lost my manager, maybe 10, 12 [employees],” Morris said.
Employees here get less than minimum wage — between $7 and $10 an hour, and Morris said she’s stuck between a rock and the tip jar.
“I can either include gratuity because I can’t trust people’s judgment anymore, or I can take tipping off the table and double my prices,” Morris said. “And I don’t think we would last a semester if I did that. What college kid can afford a $9 hot dog?”
Amazon has been quietly raising prices on everyday items: Report
Customers at Perfectly Frank ODU said they understand the issue. Longtime customer Erica Whitley said she always pays above 15% for a tip.
“The kids are constantly checking on us, if we need a refill,” Whitley said. “We don’t feel forgotten here. They’re always giving really good service.”
And student Erin Winters understands the struggle.
“I feel like, as students, we try and do our best to tip where we can and tip as much as we can,” Winters said. “Overall, I think it’s a good policy.”
As an added incentive for customers, Morris will offer a 4% discount on cash payments.
“I bust my tail and I care about my kids that work here,” Morris said. “I take really good care of them. I’m trying to maintain a balance between what’s right for them and what’s right for the customer.”
There will be signs on the tables, on the door and over the cash register notifying patrons of its new policy, and staff will be verbally reminding folks as they check out.
