Coffee shop abolishes tipping, raises workers’ pay from $8 to $18 per hour

SALT LAKE CITY — An idea percolating in the mind of a coffee shop owner in Utah for some time has come to fruition -- he has abolished tipping, but raised his employees’ hourly wages substantially.

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Nick Price, the owner of Three Pines Coffee in downtown Salt Lake City, hiked hourly wages from $8 per hour to $18 hourly, KUTV reported.

Fed up with tipping fatigue as a consumer, Price said that as a business owner, a gratuity is an outdated concept and not the best way for employees to earn a living.

“Because we get busy in the summer, tips are pretty good,” Price, who started Three Pines Coffee as a cart business with Meg Frampton in 2015, told the television station. “Then we get slower in the winter, and tips are pretty bad. I didn’t think it was right for my employees to make less money in those slower months.”

The menu at the shop’s current site, which opened in 2017, has been increased by approximately $1 per item to offset the no-tip policy, Price said. The tip is basically built into the cost of the item, KUTV reported.

The experiment has been in place for about 30 days.

Everett Hamby, a barista at Three Pines Coffee, said he was skeptical at first, but likes the idea of a consistent paycheck.

“I know how much I’m going to bring home. It’s very comforting because tips can be very volatile,” Hamby told the television station.

Hamby added that it was “awkward” to prompt customers for a tip when they paid for their items.

Price said he would evaluate the policy again after 90 days before deciding whether to make it permanent, KUTV reported.

“I look forward to seeing if other businesses jump on this because I do think people are sick of tipping,” KUTV reported. “I think it’s the future of our industry.”

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