How Do you Want To Be Paid?
How about a bit of serious discussion about salary?
If we really are thinking about pushing our vocation as a profession then we ought to think about sustainability - for ourselves. The current model for most baristas is that they make a base hourly wage plus tips. As many of you know, tips can and will vary from day to day. This makes it extremely difficult for anyone to budget accurately and really start long-term planning.
I understand that for many of you, thoughts about family, health care, mortgages and such stuff are still relatively abstract and off somewhere in the future, but maybe it's time to start considering this - especially if you desire to make barista your chosen profession and not merely something to do while you wait to do something else - or become a trainer or roaster.
The question is whether or not the base rate plus tips compensation plan works? Can you plan for the future and pay for a house on that plan? Can you afford children and education? That said, are there better salary methods that can help you achieve your goals?
Some restaurants utilize a uniform service charge on all tickets and/or pay their staff a set salary. This, of course, does not allow for the wild swings that a tip-based compensation plan can offer but it does offer a set (and known) schedule of earnings that help you position yourself as one of responsibility (in terms of banks and loans). Can this kind of compensation plan be adopted by the barista world and is it applicable?
One of the reasons I bring this up is because I remember a conversation I had with a barista who had been given a salary instead of the usual base plus tips. He told me, very excitedly, that he finally was able to buy a new car for himself. He was making a livable wage and a steady wage that allowed him to buy something nice for himself and his girlfriend. He was able to join the rest of the world instead of living on its' fringes.
And isn't that what we want for our profession?
I'm interested in discussing all opinions and viewpoints on this topic in the hopes of finding a better way to compensate baristas and help them provide a living wage that allows them a little luxury in life.
If we really are thinking about pushing our vocation as a profession then we ought to think about sustainability - for ourselves. The current model for most baristas is that they make a base hourly wage plus tips. As many of you know, tips can and will vary from day to day. This makes it extremely difficult for anyone to budget accurately and really start long-term planning.
I understand that for many of you, thoughts about family, health care, mortgages and such stuff are still relatively abstract and off somewhere in the future, but maybe it's time to start considering this - especially if you desire to make barista your chosen profession and not merely something to do while you wait to do something else - or become a trainer or roaster.
The question is whether or not the base rate plus tips compensation plan works? Can you plan for the future and pay for a house on that plan? Can you afford children and education? That said, are there better salary methods that can help you achieve your goals?
Some restaurants utilize a uniform service charge on all tickets and/or pay their staff a set salary. This, of course, does not allow for the wild swings that a tip-based compensation plan can offer but it does offer a set (and known) schedule of earnings that help you position yourself as one of responsibility (in terms of banks and loans). Can this kind of compensation plan be adopted by the barista world and is it applicable?
One of the reasons I bring this up is because I remember a conversation I had with a barista who had been given a salary instead of the usual base plus tips. He told me, very excitedly, that he finally was able to buy a new car for himself. He was making a livable wage and a steady wage that allowed him to buy something nice for himself and his girlfriend. He was able to join the rest of the world instead of living on its' fringes.
And isn't that what we want for our profession?
I'm interested in discussing all opinions and viewpoints on this topic in the hopes of finding a better way to compensate baristas and help them provide a living wage that allows them a little luxury in life.
Replies to This Discussion
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Permalink Reply by Benza Lance on
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A very good, and pertinent topic, Jay.
About two weeks ago, we opened the second location for the business. In this location, I have added "daily manager" to my list of duties. Because of this, I went on a salary, instead of hourly+tips. Not only was my boss extremely fair in negotiations with the pay, but I know find it a lot more easy on my mindset to stay at the cafe for 13 hours a day and not be constantly looking at the clock going "Damn, its 5pm, I've been here since 6am, this is bull."
Not only that, but its funny that you bring up buying a car, because I was just able to do so as well! Not brand new, mind you, but a Subaru nonetheless.
Overall, I think being on salary as an employee cuts out the ridiculous competition of who gets the "big money shifts" as far as tips are concerned, and shifts the focus from money to good service and good quality. I would imagine quite a few business owners would not be down for this, mostly because the tips people make aren't coming out of the owners bank accounts, but at the same time I would also imagine that more salaried positions would cut down on the insane amount of turnover that I've seen.
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Permalink Reply by Joe Marrocco on
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Jay, thanks for this post. This is a crucial issue, not only for the unique situation of an individual barista, but also for the existence of our industry in the future. If this industry is going to attract people who are professionals, we are going to need to up the ante in how we take care of these people. I am speaking as a person who has crossed the great divide between being new to coffee and having a sustainable income. I started as a barista making a low hourly salary. I fell in love with the industry and with coffee itself, so I stuck it out and worked for beans (he he) for a few years while building up my knowledge and ability. Now I am a roaster/trainer for a successful company and can live. Yet, it took a ton of work, time and a very tight belt. Not everyone is going to endure this. If we want to attract chef's, business school grads, and other professionals who would really help our industry in the long run, we have to invest in them now. I am of the persuasion that is a person cannot afford to pay a couple of serious staff well, then they should not open a shop. We have followed the fast food model of hiring temporary low wage staff who have low skill levels and are certain to move on. This is not a sustainable model for them. It is not a sustainable model for us.
Let's talk about that word too. By sistainable, I do not mean, "able make ends barely meet by living pay check to pay check." I mean, "able to begin saving a bit so that if something happens the individual will be able to get by, or retire, pay for medical expenses, have a family, etc..."
We as an industry are just cracking the surface on this. There are some companies that are paving the way though. So, what do we as members of the industry do to help this?
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dude.
Dude.
Right on.
Joe Marrocco said:Jay, thanks for this post. This is a crucial issue, not only for the unique situation of an individual barista, but also for the existence of our industry in the future. If this industry is going to attract people who are professionals, we are going to need to up the ante in how we take care of these people. I am speaking as a person who has crossed the great divide between being new to coffee and having a sustainable income. I started as a barista making a low hourly salary. I fell in love with the industry and with coffee itself, so I stuck it out and worked for beans (he he) for a few years while building up my knowledge and ability. Now I am a roaster/trainer for a successful company and can live. Yet, it took a ton of work, time and a very tight belt. Not everyone is going to endure this. If we want to attract chef's, business school grads, and other professionals who would really help our industry in the long run, we have to invest in them now. I am of the persuasion that is a person cannot afford to pay a couple of serious staff well, then they should not open a shop. We have followed the fast food model of hiring temporary low wage staff who have low skill levels and are certain to move on. This is not a sustainable model for them. It is not a sustainable model for us.
Let's talk about that word too. By sistainable, I do not mean, "able make ends barely meet by living pay check to pay check." I mean, "able to begin saving a bit so that if something happens the individual will be able to get by, or retire, pay for medical expenses, have a family, etc..."
We as an industry are just cracking the surface on this. There are some companies that are paving the way though. So, what do we as members of the industry do to help this?
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Permalink Reply by John P on
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Jay,
in order to pay barista well, to pay them a salary, don't we first need significantly raise our revenue on A) a per ticket basis and/or B) by raising standards, ingredients, and prices significantly to create a clear distinction between a "high level coffee shop" and a place that serves coffee.
My other thought is that, unless in LA, New York, or similar, can a barista reasonably expect to be paid a decent salary without food being part of the mix. Small plates, or what Deferio was doing at Carriage House... (wonder if he was paid well for that?) I think a transition needs to be made where coffee is A focus but not necessarily THE focus in order to create a sustainable business model.
The money has to come from somewhere, and even as well as Intelli in LA is, I doubt they are paying their top barista $40K a year (which in California money isn't that great). ... Are they?
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John, I think you would be surprised. For example, in "God in a Cup", its stated that the LA Intelli kids are getting paid (tips included) upwards of $50K/year... of course, that's including tips, and you also have to take into account the godawful Southern California (well... Cali in general) housing scene.
If coffee isn't THE focus in your business model, then you might not really be a part of this conversation in full. Here in Sacramento, the speciality coffee scene is still relatively young and fresh, but at Temple customers have no problem paying 3.5 for a capp, or 5 for a french press of Guatemala FVH microlots, for examples. Yeah, Sacramento has a huge metro area, but as I stated, the scene isn't caught up with the amount of people.
I would state that as a business owner, you will be making less initially, but you'll have happier staff, attributing to better service, which in turn ups sales, and eventually you'll be back where you were, making bank while your staff is well taken care of and less likely to jump the boat to other jobs.
John P said:Jay,
in order to pay barista well, to pay them a salary, don't we first need significantly raise our revenue on A) a per ticket basis and/or B) by raising standards, ingredients, and prices significantly to create a clear distinction between a "high level coffee shop" and a place that serves coffee.
My other thought is that, unless in LA, New York, or similar, can a barista reasonably expect to be paid a decent salary without food being part of the mix. Small plates, or what Deferio was doing at Carriage House... (wonder if he was paid well for that?) I think a transition needs to be made where coffee is A focus but not necessarily THE focus in order to create a sustainable business model.
The money has to come from somewhere, and even as well as Intelli in LA is, I doubt they are paying their top barista $40K a year (which in California money isn't that great). ... Are they?
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Coffee is the focus of what we do. My point is that you either need HIGH volume and moderately high prices or HIGH prices and a (still) moderately high volume. $3.50 for a cappa is low if were looking at setting a standard or trend. I'm all for the $3, $5, $7 model. espresso, cappuccino, latte. But in any case, you need to be a volume based operation. And without the volume or the price/revenue how many independents can do enough on a strictly coffee menu to pay their staff well? Just posing the question.
I made the equivalent of $42K a year delivering pizza, but my actual wages only amounted to less than $15K per year. I know you can make serious money if you consistently get tips, but tips aren't guaranteed, salary is.
And as far as the real world goes, if they are not claiming "$50K" on their tax returns, then it ain't so. (even if it is).
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Believe me, using organic, local milk with some awesome coffee, i think it would be reasonable to charge $4-$5 dollars for a capp. Our prices aren't so because we use regular Crystal by default, but have organic milk as an option. If I were to run my own shop, and do everything right (local as possible with milk, sourcing excellent beans, etc), I wouldn't hesitate to charge that much for a capp. I would also go as far to say that if you aren't doing significant volume, you would probably have more problems than whether or not to install salaried employees.
And don't get me wrong, I'm totally about doing food things... but if they're paired with coffee's or employ coffee in the ingredients, to show off the coffee. I understand on this point I'm being mildly ridiculous to some, but if I want a sandwich, I can name off other places besides a coffeehouse that I would go to. Pastries/delicasies are one thing, but sandwich/salad/soup aren't really up my alley.
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Permalink Reply by Stephen Curtis on
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Almost hijacked the tip-sign thread...then remembered I had read something about this issue (sort-of) before.
Jay,
You propose an interesting concept (perhaps not purposeful) that I have been mulling over for a while now. But first, what would be your proposed gratuity solution (optimal, not current)? No gratuities? More like a cook, not a server? Why do you not nix the jar?
To my knowledge even the servers at very high-end restaurants do accept gratuities. Do the cooks share in a percentage of gratuities? In a bar, both the wait-staff and the tenders share in the pool (although I do not know how standard this is).
To me, what you are talking about is not a matter of the profession, per se, but more where you work in that profession. Someone who tenders at the local pub probably would not be considered as 'professional' as the barkeep at a top tier bar. There is not any getting around the fact that coffee is in the service industry, it's just a matter of where you fall in that category.
It is my personal feeling that until we separate out the functions of the whole process, then everyone is brought down the the 'lowest point' (as perceived by the customer) Do you see top cooks working a cash register? Do they take people's coats or work seating arrangements?
The thing is that, the smaller the company, the more tasks each person will have to perform. You may just see many more of these types of things being carried out by said 'cook'.
Perhaps something like this?:
Styled similarly to an open-kitchen restaurant. Servers deal directly with the customers and the baristas are in the 'kitchen' or designated are on the various machines. This concept doesn't work for everyone obviously. Another way could be like a bar, with the the tenders working with anyone seated at the bar, and those who belly up to the counter, and the wait-staff taking care of anyone who would like to be seated. The main problem I see with this concept is: most places in the states prohibit to-go cups for alcohol, whereas in coffee it is allowed, and thus taken full advantage of. This could be managed by prohibiting it in the establishment itself, but this does not allow for the 'hands-off' approach that a government regulation would allow.
After all that, it still sounds like it comes down to the concept itself, rather than the profession. Thoughts?
Jay Caragay said:Quite frankly, I'm against the whole tipping jar thing. I'd prefer it went away. Especially since baristas are paid higher than servers who make an hourly wage lower than minimum. Although, if baristas were willing to work for $4.35 per hour...
That said, I don't handle tips. That's strictly between the customer and the barista. We do have a tip jar but it is small and discreet. No signs of any kind. In fact, placing those cutesy signs you see on so many tip jars is cause for immediate termination.
If the idea is to push our craft into a noble profession, there's nothing less noble than being a person holding out your hands for alms - and the tip jar sign is the most pathetic method of holding out your hand.
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Permalink Reply by Jay Caragay on
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Stephen,
Those are some great points of discussion.
In an ideal environment, I would prefer that customers not tip staff. Compensation should be appropriate for staff to provide not only a living for themselves but to also earn enough to save and plan for their future. To my mind, that is the ultimate goal in business: to develop a company that not only produces the highest quality product and hospitality for customers but also provides for a life (and future) for its' staff.
For ten years now, I've been against the tip jar. It has always been my feeling that the work we do is what we do and that work does not require or have room for the expectation of a "tip." In many situations, a "tip" seems expected by the staff and I really am against that. As a customer, I expect to pay a fair price for the goods and services I receive - why should I be expected to provide additional compensation in the form of a "tip"? It's essentially extortion.
My battle with the tip jar goes back to the beginning of Jays Shave Ice exactly ten years ago. When we started out, we did not have a tip jar and did not encourage tipping by our customers. It was my intention never to have a tip jar and I was surprised at the mass numbers of customers who literally insisted that we accept their tips. At some point, I decided to acquiesce to their demand and produced a tip jar - which, literally, was a quart size paint can with nothing on it to denote "tips." And it's stayed that way ever since.
Come to The Spro today and you will find that same quart-sized paint can sitting unobtrusively and incognito on the counter. Customers still ask if we have a tip jar and we direct them to the little paint can if they feel so inclined.
But why keep the jar? It's a good question. To my mind, if "tips" are supposed to be an indication of great service then that's what I want it to be - a reward to staff for going beyond the expected. And I hope that's how it works in the minds of our customers.
That said, I still prefer to get away from the tip jar mentality.
Which is why I proposed this question. I'm concerned about staff being able to work in our craft professionally and plan for their future. How anyone can work for minimum wage and hope to marry, have a family and own a home is still beyond my understanding. And I'm hoping that questions like this are on the minds of those baristas who desire to pursue this craft as their profession.
When you ask if I see top cooks working the register, I can point out Schwa in Chicago where some truly talented cooks are also serving your food but that's certainly the exception rather than the rule. Even in restaurants where "barista" is a strong, identifiable position, the barista's place in the hierarchy of the FOH/FOB chain is unclear at best, making this the ideal time for us to define our own paradigm and set a standard.
Baristas are in the very unique position of creating and serving their product. It pulls the best elements of the FOH/FOB relationship yet we still float around undefined.
Part of my thinking leads me towards an ideal hourly compensation of $12 per hour (no tips), which unfortunately, is unattainable for many coffee shops. But this is the discussion I'm interested in having - how to create an environment that is conducive to wages of this level.
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Permalink Reply by Lorenzo Perkins on
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Great discussion Jay.
At our cafe in Austin, we are presently working through a model similar to what is being thought out here. We are starting with it only at night, from 6 pm on, to create an atmosphere of a night time destination. We will be offering our traditional menu (7 oz caps, lattes, etc.) in addition to a single origin espresso with four competition style signature drinks created around that espresso. Additionally, small tasting plates of artisan cheeses, local fruit and vegetables, as well as tasting salads and some interesting meats from a local charcuterie. All of the food will be of the snacking size (think tapas), and centered around the idea that it pairs with specific coffees that we are offering . . . trying to bring the culinary into the coffee to elevate the overall experience.
Now, here's where it gets interesting. We will be putting linens on the table with small centerpieces, dimming the lights a tad and playing music like the Buena Vista Social Club . . . energetic but not overwhelming. We will also have two employees working that shift, a barista and a server. This set up will enable us to convey to the customer that what the barista is doing behind the bar is very similar to how a chef will approach creating a dish for you, and having the server allows the barista to be focused on drink prep. Since the server will not be directly involved in any part of the drink prep, they are allowed the time and freedom needed to provide that higher tier of customer service.
Our barista will be a salaried employee making around $10-$11 an hour, with the server starting at $7.25. I hope that this model that we are creating will be accepted in a relatively non coffee forward city, but time will tell.
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Permalink Reply by Marshall Fuss on
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Doug Zell often repeats the mantra of "high quality, high prices, high wages." I do not know if it works in every market, but it certainly seems to work for Intelligentsia.
Switching from wages (hourly) to salary (weekly/monthly) raises tricky employer budgeting issues for most baristas in most states, because they will still usually be covered by their state's overtime laws.
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Some of the word that I've heard from Intelligentsia regarding barista compensation sounds very revolutionary but the numbers I've heard sound difficult for anyone to make: upwards of $50K for a line barista? And the expectation that all baristas can make this wage?
I'd like to know more about that possibility and the criteria a business needs to have in place in order to provide that level of compensation.
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