Three pines coffee takes a revolutionary step to prioritize fair wages over tipping culture

In a bold move challenging the traditional tipping norms in the United States, Nick Price, the owner of Three Pines Coffee in Salt Lake City, Utah, has decided to do away with tipping altogether and instead provide his workers with a significant pay raise. The contentious decision comes amidst the ongoing debate over the etiquette and impact of tipping in the service industry.

“Because we get busy in the summer, tips are pretty good,” Price explained. “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.”

Taking a stance against the fluctuating nature of tip-dependent incomes, Price is shifting the focus to ensuring his employees receive a more stable and better living wage. The hourly rate for his staff has seen a remarkable increase from $8 to $18, a 125 percent boost.

But how does Three Pines Coffee manage to absorb such a substantial increase in wages without jeopardizing the business? The answer lies in a simple adjustment: adding $1 to the price of every item on the coffee bar menu. This strategy enables the coffee shop to maintain profitability while uplifting its employees.

Not all staff members initially welcomed the decision to eliminate tipping. Lead barista Everett Hamby expressed concerns about potentially earning less without the option for customers to tip. However, he quickly realized that the new hourly rate provided a more predictable and stable income, bringing comfort in the face of the volatility associated with tips.

The newly implemented tipping protocol is still in its early stages, and Nick Price plans to evaluate its effectiveness over the next three months before considering its permanence. Despite a positive response from both staff and customers so far, he remains cautious, stating, “I look forward to seeing if other businesses jump on this because I do think people are sick of tipping. I think it’s the future of our industry.”