Ashland restaurateur says low tipping is causing him to lose staff. Here's his solution
ASHLAND — A local restaurateur has instituted an automatic 18% gratuity on all dine-in orders, saying low tippers have made it hard for his business to retain staff.
Alan MacIntosh, owner of Doragon Eatery at 1 West Union St. (Route 135), announced the new policy in a recent Facebook post.
"The tips have just gone away," he told the Daily News. "Our sales today (May 3) for lunch were around $1,000. My front-of-the-house staff made $30 (on tips). They can't survive on that. It's hard enough to find and keep staff and no one tipping makes it even harder."
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MacIntosh said the average tip at the restaurant is about 5%. The state minimum wage for tipped employees is $6.75 an hour (non-tipped employees must receive $15 an hour). Doragon Eatery pays its servers $7 an hour, but that's not enough to make up for low tips, he said.
"It's very discouraging for them (wait staff)," MacIntosh said.
Owner says tipping is not part of his clientele's culture
MacIntosh said the automatic gratuity does not include takeout orders. He said tips are not expected for takeout but are appreciated.
He said he believes the reason for the low tipping rates is the nature of his clientele. The restaurant, which specializes in what it describes as "Asian comfort food," attracts a large number of people from the local Chinese and Indian communities, and MacIntosh says tipping is not done in their culture.
"I have one customer who comes in three or four days a week and he spends $45 each time and leaves a $1 tip," he said. "It's not that he doesn't have the money — he pays with a $100 bill every time."
Stephen Clark, president and chief executive officer of the Massachusetts Restaurant Association, said mandatory gratuities have been happening for a while, but mainly for larger events and private events.
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However, he said, when tips average only 5%, he will not blame a restaurant for instituting a policy similar to what's been done at Doragon Eatery.
"At the end of the day, the restaurant owner needs to take care of their employees and if that is the change needed then that is what they're going to do," Clark said.
MacIntosh said there's a prominently displayed sign at the restaurant informing customers of the 18% gratuity policy. He said it will be printed on every menu, so customers are not caught by surprise.
"It's unfortunate that we have to do this," he said. "I have to do it for my staff."
Norman Miller can be reached at 508-626-3823 or nmiller@wickedlocal.com. For up-to-date news, follow him on X @Norman_MillerMW or on Facebook at facebook.com/NormanMillerCrime.
This article originally appeared on MetroWest Daily News: Ashland restaurant institutes 18 percent gratuity for dine-in orders
