A coffee shop in Denver has initiated to raise the wage of their employees. This move is made in order to put a stop to the tipping system and that workers would not rely on tips for their salaries.
Raising Prices, Raising Wages
The Amethyst Coffee Company announced on Instagram that to provide their staff with a living wage, prices for their coffees will increase as well. This initiative took effect when three of their locations were reopened in May.
In the post, the coffee shop explained: “We raised our prices to include gratuity and better financial compensation for our team because we need to figure out a more sustainable future for our industry.”
‘No More Tips, Please’
Along with their post is a photo of an overlay of a bill, accompanying a message: “NO MORE TIPS, (PLZ)”
As CNN noticed in a reply on the business’s Instagram post, Amethyst Coffee Company revealed they wanted to eliminate the tipping culture by paying their workers right.
“It’s problematic that baristas do so much unpaid emotional labor at a price that is subject to the guest’s discretion,” the coffee shop wrote.
The increase in prices ranges between 20 to 30 percent only, which is about the same amount that customers usually tip. For example, their latte’s updated price is $6.75 from the previous $4.50. Their mocha went up from $5.50 to $7.50, per CNN Business. Compare that to $3.95 for a Starbucks latte.
No More Paycheck-to-Paycheck
But it is paying off. In a local publication, Amethyst Coffee Company’s Winn Deburlo told The Denver Channel that “working for Amethyst has changed my life, and I have worked in hospitality half my life now.” He also noted how his previous jobs, half of his pay, are actually reliant on tips. For Deburlo, being employed for the coffee shop has been “the most stable.”
According to Business Den, this modified pricing will enable Amethyst’s staff to earn $50,000 per year.
Deburlo further said that they have customers who still insist on giving tips. He said that this is a “more human way.” A lot of their customers are not complaining, he noted.