a woman and her husband at a restaurant
Dara Abrams and her husband at Calissa, where they both work.
  • Dara Abrams has worked as a server in the Hamptons since 1996.
  • She works at Calissa, a Greek restaurant with a no-tip model where she earns a living wage.
  • The reliable income has allowed her to live comfortably year-round and save for a trip to Italy.

This as-told-to essay is based on a conversation with Dara Abrams, a server at Calissa in the Hamptons. It has been edited for length and clarity.

I moved to the Hamptons right after college in 1996 and started waitressing to make ends meet. After falling in love with the business, I worked at many well-known spots such as Bobby Van's, Basilico, and Little Red.

Now, I work at Calissa, a Greek fine-dining restaurant in Water Mill, Southampton, as a senior server, a captain, and a bartender. Calissa reached out and asked my husband, who's a chef, and me to interview together because we're year-round Hamptons residents, and they wanted to transition Calissa from a seasonal restaurant to a year-round restaurant.

We both started in summer 2019, but when COVID-19 hit, we were trying to figure out the best way to move forward, because without in-person dining, there are no tips. Management had discussed trying the no-tip model previously, but the pandemic was the catalyst.

Calissa started using this model in 2020

Calissa decided to add an 18% service-administration fee to all checks, including to-go orders, in March 2020. They also raised our hourly wages from $10 an hour to between about $25 and $50 an hour, depending on seniority and other factors. I make closer to the top end of the rate because of my experience.

Being an hourly employee has been amazing. It's made my life so much easier knowing what I'll make. I don't have to deal with the stress of squirreling away the higher tips I make over the summer to make it through the winter. Even though my hours go down in the winter from 38 to 28 hours, knowing exactly what I'll earn is invaluable.

Some customers still tip

Occasionally, customers still tip even though the restaurant lists the administration fee on the menus, the website, and the checks. It's usually nominal — an extra $5 or an extra $10 — but occasionally, customers are so happy they'll throw in an extra $50. The restaurant then distributes that money to all front-of-house employees: captains, servers, back waiters, runners, barbacks, and bartenders.

It's never a ton of money, but we greatly appreciate it; they're giving you an extra pat on the back because they're impressed with your service. We always try to elevate our service so customers feel the administration fee is worth it.

Typically, I make about $75 to $150 a week on top of the hourly rate.

Having a husband, a child, and a mortgage means this model is a godsend

I'm no longer crossing my fingers, hoping for generous customers who spend a lot of money or order a nice bottle of wine.

In the past, if someone came in for a chat and just a few glasses of wine, that wasn't great. On a $70 check, hopefully I would get tipped $14. But if they ordered appetizers, entrées, and desserts, the check would now be $250, and I'd get $50. This no-tip model takes away all that uncertainty.

I've worked with people who stressed at the end of the month, saying things including, "I didn't make any money this month, and my car payment is due in a couple of days," or "I have to pay my babysitter tonight, but I didn't make anything and have no cash to pay."

Thanks to my reliable income, I was fortunate to have saved enough for a 12-day trip to Italy with the family this year, where they also don't have a tipping model. I still left a few euros on the table at restaurants as a gesture of appreciation.

I plan on staying at Calissa

My husband is now the executive chef, and I'm happy to be working for a company with this model in place. The restaurant doesn't have plans to go back to a tipping model now that pandemic restrictions have eased because both employees and management are happy with what's currently in place.

Read the original article on Business Insider