SAFETY HARBOR, Fla. — A restaurant in Safety Harbor has implemented a commission-based pay model to pay servers and other support staff.
Southern Fresh on 3rd Avenue North adds a 20% service charge to every check for customers who dine at the restaurant.
The fee does not apply to takeout orders.
Servers receive 15%, while other support staff like bartenders and runners share the other 5%.
"At the end of the day, it lets everyone work based on commission rather than hourly and tips," said Aaron Stewart, owner of Southern Fresh.
"There has always been a bridge, a big gap between front-of-the-house pay and back-of-the-house pay, and this has allowed us to bridge that gap," said Stewart.
Southern Fresh has been in business for nearly 12 years. About a year ago, the restaurant implemented the service charge.
Customers may add an additional tip for exceptional service. If a customer leaves an additional tip, the server receives it in full.
Stewart said the new pay model allows them to avoid raising menu prices and fight the rising costs of operating a restaurant.
"We certainly hear of people that say we’re not coming back because of that model, but as a restaurant, our sales in 2023 rose 20% on top of 2022, so we are thriving," said Stewart.
Stewart has a sign on the restaurant's front door notifying customers about the service charge. There is also a sign on each table.
"This has allowed us to not only go out and recruit industry top performers but have more of them on and provide a better quality of life resulting in a better product at the table," he said.
Stewart said the restaurant went from critically short staffing levels to fully staffed. The restaurant is also expanding hours instead of reducing hours.
Zachary & Christina Feinstein implemented the commission-based model at their restaurants. The Feinstein Group operates Sonder Social Club, The Living Room, and The Black Pearl in Dunedin. Zachary Feinstein said the change has been successful and boosted wages for employees.
Faizan Ali, an associate professor at USF's Muma College of Business, said the restaurant's decision to adopt a service charge and commission compensation model reflects a newer trend in the service industry.
He added in an email, "The basic idea is to address wage disparities between front-of-house and back-of-house staff, providing a more equitable distribution of income. The move towards predictable and stable income for restaurant staff aligns with ongoing discussions about fair wages and worker compensation in the industry. In my opinion, while this approach offers potential benefits, effective communication with customers is very important to navigate potential resistance and ensure an understanding of the new compensation structure. Moreover, monitoring customer feedback, staff satisfaction, and overall business performance will be important in evaluating the success of this innovative model in Safety Harbor."
