Contact Us

One Restaurant’s ‘No Tipping’ Policy is Absolutely Genius


One restaurant in Kentucky is making waves, but in a good way. And it comes in the form of not allowing tips from its customers.

But why is that a good thing? Turns out, this restaurant actually is keeping its waiters’ and waitresses’ better interests at heart, and it’s making them a lot more money.

Packhouse Meats in Newport, Ky., has signs posted around the restaurant that explicitly say, “No tipping.” If you pay by credit card, there’s no place to add a tip amount. It’s all done.

What does Packhouse Meats do differently? It pays its servers a flat rate of $10, no matter how long they work. But here’s the kicker: if the server’s individual food sales are more than $500, they’re paid 20 percent of the total sales.

Bad tippers can ruin a server’s night easily, causing financial struggles since they depend on patrons to basically pay their bills — because that $2.13 per hour isn’t going to get you much gas in the tank. But going in knowing you’re going to make at least $10 an hour is brilliant. But by pushing food and being a great spokesman for the restaurant, you can make way more.

It wouldn’t be uncommon for a server to wait on 100 individuals on a Friday or Saturday night. Even if you put it at $10 per person, that’s $1,000 in food sales and $200 to the waiter. If all that’s done in a five-hour shift, you’re looking at four times the $10 per hour base salary.

It benefits both the restaurant and its employees greatly. When servers know their pay is based on how much food they sell and not on a stranger’s generosity, they’re going to sell their restaurant.

And, it means the servers don’t have to deal with people who don’t know how to tip. Love it.

Best of 101.5 KNUE

Recommended for You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for KNUE Country Club quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive KNUE Country Club contests, events, coupons, presales, and much more delivered to you for FREE.