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These restaurants don't take tips

A handful of restaurateurs have started 'no tipping' policies. Here's why, and how they're paying their staff.

Paying workers equally

Bobby Fry Bar Marco
  • Where: Bar Marco, Pittsburgh
  • Owner: Bobby Fry

After three years of operation, Fry decided to eliminate tipping and instead offer workers a $35,000 base salary and health-care benefits. To help cover the costs, Fry adjusted menu prices and changed portion sizes. The restaurant also decreased its cost of goods to create higher profit margins.

Why: "For us, it was more about paying the front and back of house equally," said Fry.

The result: After six weeks of the new policy, Fry said the restaurant's sales are 26% above projections and that overhead costs have decreased to 27% from 40%.

  @KathrynVasel - Last updated May 20 2015 11:40 AM ET

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