Skip to main content
Updated:
Original:

2 Minneapolis cafes eliminate tipping and raise staff wages

The future of tipping is under the microscope as Minneapolis considers a $15 minimum wage.
Author:

Two Minneapolis cafes announced this week they've eliminated tipping, and are raising the pay for their employees.

Common Roots Cafe (2558 Lyndale Ave. S.) and Butter Bakery Cafe (3700 Nicollet Ave. S.) informed their customers of the change by posting signs in their establishments and on their social media accounts.

In a lengthy explainer, Common Roots Cafe says it will be raising the pay of its staff from at least $11.40 per hour to a minimum of $15 per hour, plus benefits. As a result it won't be accepting tips, something the cafe said "never felt right for our business." To cover the extra cost, prices are rising 15 percent.

"We believe all people, regardless of where they work, should make a fair wage and should not have to depend on tips as a major part of their compensation," the cafe's Facebook post said, adding: "We think of this [as] a small step we can take toward making the restaurant industry more equitable and to make our workplace stronger and more supportive of all staff."

The Butter Bakery Cafe posted a shorter message to customers on Tuesday, saying that it has "built fair wages into our menu prices" and is now a "tip free" eatery.

Other restaurants in the cities have experimented with no tipping policies before but they've not always been successful. WCCO reports Upton 43 and Victory 44 ended their no-tipping policy last March after a trial run.

Chef and owner of both establishments, Erick Harcey, said it actually went over well with customers and staff members, but caused the restaurants to be priced out with competitors who didn't have the same policy.

Tipping under the microscope in Minneapolis

The shift in policy at the two cafes comes amidst a wider wage discussion. Minneapolis is considering plans to implement a city-wide, $15-an-hour minimum wage, something that some in the restaurant industry are opposed to.

Mayor Betsy Hodges wants the city's new minimum wage policy to not include a "tip credit." That's where tips are used to top up the earnings of wait staff, getting them up to or above minimum wage levels.

But a coalition of Twin Cities restaurants are objecting to the proposal, saying that thanks to tips, some workers actually make more than $15 an hour and would end up making less if restaurants were forced to pay a higher base salary.

It would also mean menu price hikes that could potentially cost jobs if customers shy away, even though they wouldn't necessarily have to tip.

The minimum wage in Minnesota is currently $7.75 for small businesses and $9.50 for large.

Next Up

giant bear

Video: 'THE fattest bear we have ever seen' spotted on MN trail camera

"This might be THE fattest bear we have ever seen in our area," researchers said.

u.s. attorney

Guilty plea from man who stockpiled guns, equipment to make bombs, drugs

Prosecutors say he had multiple guns, items to make weapons and pipe bombs, and lab equipment to make drugs.

polaris Ranger XP Kinetic

Here is Polaris' new electric Ranger off-road vehicle

The Minnesota-based company unveiled the electric UTV on Wednesday.

MNWOSO_Aurora

MN women's soccer team narrows name, logo options to final 3

The winning nickname and logo will be announced in January.

Kirill Kaprizov

2nd period surge leads Wild to fourth straight win

With three goals in the second, the Wild blasted the last-place Coyotes.

Gopher Basketball / R.J. Stephens

Late-tip in helps Gophers pass first big test, improve to 6-0

Luke Loewe's bucket with 2.4 seconds remaining helped the Gophers stay undefeated.

ambulance

Man, 40, found dead stuck in air duct at his Otter Tail Co. home

The discovery was made by family members Monday morning.

Biden Minnesota visit stream screengrab - 11.30.31

What Biden said during his visit to Minnesota Tuesday

The president spoke at Dakota County Technical College.

Grand Marais

Cook County registers its first COVID-19 death of the pandemic

The sparsely populated, highly-vaccinated county has continuously had one of the lowest rates of COVID in the state.

Waits family screengrab CNN

Support for MN family after anti-maskers target child of school board chair

An online group opposing Kelsey Waits outed the child as transgender.

Related

Minneapolis brewpub weighs up $300K cost of a $15 minimum wage with no tip credit

Servers at Northbound in Minneapolis earn $28-$30 when tips are included.

In $15 an hour debate, 100 restaurants spell out the case for a 'tip credit'

Pathway to 15 says not including a 'tip credit' in the city's new minimum wage would be a devastating blow to the restaurant industry.

Minneapolis won't hit $15 minimum wage for years, so why is Whiskey Junction closing now?

It cites the impending minimum wage hikes, but it won't hit $15 for small businesses till 2024.

What is the 'tip credit' and why does Mayor Betsy Hodges not like it?

Minneapolis is weighing a new minimum wage for businesses, but Mayor Hodges doesn't want to see a "tip penalty" included.

Minneapolis says viral post showing chicken in dirty cafe sink is a fake

The footage has been debunked by the Minneapolis health department.

Minneapolis says viral post showing chicken in dirty cafe sink is a fake

The footage has been debunked by the Minneapolis health department.

The Colossal Cafe is moving to a place where it's less tiny

The cafe's owners say it is planning a "new concept" for the soon-to-close original location.

The Colossal Cafe is moving to a place where it's less tiny

The cafe's owners say it is planning a "new concept" for the soon-to-close original location.