Living Wage

The Living Wage Fee – Understanding what it is

For years, dine-in restaurants have struggled with a growing problem in the form of wage inequality between front of house employees and back of house employees. While FOH tipped employees can earn over twice what BOH employees earn, that gap just keeps getting wider. And as more restaurants have adopted this practice, it has become harder to keep good staff without it.

Whenever we raise menu prices to cover inflation and government-mandated Minimum Wage increases, tipped FOH employees actually receive two pay raises: one in their hourly pay and again, in their gratuities as these are based on a percentage of the price increases. Whenever menu prices increase to cover our cost increases, the gap in wages just gets wider. As owners, we are obligated to address the problem, as it is not only inequitable, but unsustainable.

At the Burns, we have implemented a 2% Kitchen Living Wage Fee to our guest bills, which is far below industry average. This fee, though small, has a huge impact, as it closes most of the wage gap.

We are often asked, “Why don’t you just raise your menu prices instead?” We hope this answers that question, as raising menu prices just exacerbates the problem... Menu price hikes means larger bills, larger bills means higher tips, and the gap keeps growing. Effectively, The Kitchen Living Wage Fee is just a price increase, but it is transparent in its specific purpose to close the gap between tipped and non-tipped employees. For this to work, guests should adjust their gratuity accordingly. We believe this is a fair, effective and sustainable approach. Thank you for taking your time to read this, and enjoy your dining experience with us at the Burns Pub & Restaurant.