Utah coffee shop eliminates tipping, gives employees 125 percent raise instead

While the tipping culture in the US may be out of control, at least one business is determined to do something about it.

Beginning January 1, a coffee shop in Utah made a bold move that has a lot of people talking.

Nick Price, the owner of Three Pines Coffee in Salt Lake City, Utah, decided to completely eliminate tipping from his business. In return he increased his employees hourly pay from $8 to $18 per hour.

Price acknowledged that even he was getting tired of tipping culture, so he knew his employees who relied on it as a part of their salary couldn’t take much more.

“Because we get busy in the summer, tips are pretty good. Then we get slower in the winter, and tips are pretty bad. I didn’t think it was right for my employees to make less money in those slower months,” he said.

To offset the increase in wages, Price increased the cost of each item by approximately 15%.

“We understand this may make us one of the more expensive coffee shops around, and we appreciate your understanding as we strive to ensure our team members are fairly compensated,” he wrote on the company’s Instagram.

Price assured customers the coffee shop’s quality would not suffer.

“Despite these changes, our commitment to providing exceptional service remains unwavering. We’re dedicated to creating a welcoming atmosphere where you can enjoy your favorite cup of coffee without any judgment, ensuring every visit is a delightful experience.”

Everett Hamby, a barista at the coffee shop, was initially hesitant about the idea, but has since found it “very comforting” to know their salary is stable.

“”I know how much I’m going to bring home. It’s very comforting because tips can be very volatile,” he told KUTV.

When Price made the announcement on Three Pines Coffee’s Instagram the response was overwhelmingly positive.

So far the policy has been in effect for 30 days. Price plans to keep it in place for 90 days before re-evaluating to see if it will become permanent.

“I look forward to seeing if other businesses jump on this because I do think people are sick of tipping. I think it’s the future of our industry.”

What are your thoughts on businesses increasing the cost of their products in order to put an end to tipping culture? Share your thoughts with us on Facebook.


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