Portland Restaurant Reverses No Tipping Policy After Incurring Losses
When it announced several months ago that Bao Bao Dumpling House in Portland would be eliminating tipping for servers, it raised a lot of eyebrows. The restaurant called it an experiment. But after months of that experiment, the restaurant readily admits...it failed.
According to CentralMaine.com, Bao Bao Dumpling House reversed their no tipping policy on Wednesday after months of lower profits. The restaurant declined to state just how much money they had lost as compared to the previous quarter, but it was substantial enough to reinstate the tipping policy. The restaurant had raised prices nearly 20% to offset the no tipping policy.
This reversal by Bao Bao will add fuel to the fire for those that believe that raising the minimum wage while eliminating the tip credit statewide will cause a downturn in business and profits for Maine's restaurant industry. Others will argue that without more participation from other restaurants on the no tipping experiment, Bao Bao was essentially left on an island to fend for themselves. There is no word on whether Bao Bao will return to their original prices.
What do you think? Are you happy that the no tipping policy has been reversed?