Starbucks' Tip Dilemma

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  fowlbruce03/27/08 Report as spam
  1

  Be Righteous

  If they really do pay everyone working there a salary then do away with tips entirely.

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  recjr03/27/08 Report as spam
  2

  Tips

  They have a tip jar. They don't actively solicit nor do I feel compelled on every visit to leave a tip.
  
  I do because of the customer service I receive. It is true that everyone participates in the customer experience, managers to "baristas." It is a team effort and experience at Starbucks. Even the CEO and founder Howard Schultz himself, when visting his sites in the field, "roles up his sleeves," and joins in serving the customer. It is part and parcel to his leadership philosophy. If the manager and employees decide to share the tips, that should be left up to the Howard and the company to decide; not some court.
  
  Courts should see this as what it is, an attempt by an attorney to transfer wealth from yet another, "successful big corporate entity," into the attorney's own pockets. At some point, courts and those that serve the courts, have to become smart enough to determine what is truly a premeditated act against an employee in which legal action may be warranted, and one in which someone just wants to become rich at the hands of the other (this particular case being an example).
  
  Let me ask this blog, "Which act is the most larcenous?" An employee feeling as if they have been, "shortchanged" by not receiving their fair share of tips (Starbucks operates on a team platform in which managers "role up their sleeves" and join in serving the customer.) OR an attorney looking for a money grab.
  
  When the price of coffee rises or the customer experience isn't what it used to be or customer service declines, you can thank some attorney looking for a wealth transfer scheme from the business to his/her pockets. I've met some attorneys that are conscientious; most I've met are self-absorbed and egotistical; mostly concerned about, "the end, and not necessarily the journey to the end." Ironically, because they are who they are and are the top percentage of wage earners, they don't necessarily concern themselves with how much they choose to pay for a cup of coffee or things like customer experience or consumer satisfaction.
  
  Regards,
  
  Robert Chenault

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  jcocciolone-2181233797604935904998976893759903/27/08 Report as spam
  3

  When did the tipping rules change?

  I might come across as an old "fuddy-duddy" (or "old fart" to you younger folk), but when did we start tipping people who work a counter and provide a product for you to consume? I understand waitresses/waiters working for tips (they do a lot of running back and forth and serve at multiple touch points).
  
  I think the real culprit here is the owner who underpays their staff (all staff including managers or "baristas") and forces them to live on tips. In my opinion, no on should be paid under the minimum wage - no exceptions.
  
  I will continue to tip at Starbucks as I always have, but maybe I'll leave a litle extra for the owner. After all he/she may need it the next time they travel on Holiday.

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  recjr03/27/08 Report as spam
  4

  The story behind the story

  If you read Howard Schultz's story, this is not someone that came from being fed with a silver spoon. His desire to have his own business came first from seeing his father injured, unemployed, without unemployment or health benefits, and struggling to pay the bills and keep his family fed. Howard grew up in the Bronx and not from some privelaged upbringing. Later in life, his competitiveness found its way to college football. He almost lost his bid for his business when a venture capitalist wanted the business for himself. I have visited Starbucks from New York to California and I have yet to meet a disgruntled employee. Most just sing the praises of the company. How many employees do you know where you can walk into a business, regardless of location, and not hear something they hate about their jobs?
  
  I have never had my arm twisted to leave a tip at Starbucks. I do so because of two reasons: 1) I get great customer service, and as a result, I enjoy the customer experience; 2) I wish to support a leader like Howard Schultz that acts responsibly when it comes to taking care of his employees (i.e. he ensures that everyone making as little as $20,000 annually receives health care). I admire him for building a coffee empire and giving back to his employees. It is because of the people he hires that the customer experience is what it is.
  
  While you poke fun at leaving a little more so he can enjoy his holiday, you might think about leaving a little more to support an American businessman trying to provide entry level jobs and careers for people; who supports an environment where employees can be as successful as they want to be.
  
  Regards,
  
  Robert

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  recjr03/27/08 Report as spam
  5

  RE: Starbucks' Tip Dilemma

  I say leave Starbucks to what Starbucks does best. Provide a customer experience via coffee that keeps people coming back. How they want to distribute their tips should be left up to Howard Schultz and those in his command. If you read the bio on Howard you'll find out that the things he's done at Starbucks for the employees that work there are phenomenal. Things like health benefits for those that make as little as $20,000 annually. His desire to lead a company came from a crucible in which he saw his father injured, unemployed, without benefits, and trying to feed his family while recuperating from his injury.
  
  I don't know the history behind why this occurred but to me it is nothing more than the government/courts and a money hungry attorney trying to usurp monies from a company that is the epitome of one man's dream to have his own American business. One wonders why companies choose to offshore their businesses when stupid stuff like this continues to occur.
  
  I don't know Howard but I believe in what he is doing for his employees and for himself. He has obviously built a coffee empire based not only on providing a unique coffee experience for his consumers but his employees believe in him as a leader and because he takes care of his employees, they in turn take care of the customer. That, in my humble opinion, is why he is so successful.
  
  A note to the California judge/courts/attorneys and now the one in Massachusetts: FIND SOMETHING BETTER TO DO WITH YOUR TIME.
  
  Regards,
  
  Robert Chenault
  Master of Science in Leadership, Ken Blanchard College of Business, Grand Canyon University

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  Mike Cudzich03/27/08 Report as spam
  6

  RE: Starbucks' Tip Dilemma

  Only in America!
  
  You and your ludicrous litigation settlements!
  
  The main winners, as usual, will be your overpaid lawyers; - what, I wonder, were the court costs for this affair?
  
  Also for this industry generally, unless restaurant staff are self-employed, how come they are not automatically covered by the minimum wage? The minimum wage is surely for an hourly rate that must be paid whether a restaurant has customers or not; if employees are required to be there then they should be paid the minimum per hour, - the risk of no custom should only be born by those who stand to make the rewards (profits).
  
  Personally speaking I do not tip people who don't come out and serve me, and most people I know don't either. One doesn't tip a bus driver or a shop assistant (sales clerk to you Americans) so why does one tip someone who simply serves from behind a counter? A bar tender (or barmaid if female in the UK) might be tipped if they are particularly affable and one is feeling chatty, but because our law in the UK does not allow one to defer payment, the bar tenders don't keep coming and filling up one's glass because payment must be given before each and every drink is consumed. Thus there is less opportunity for earning tips unless they come out and serve at the table.

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  recjr03/27/08 Report as spam
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  Response to UK

  Great post. To your point, the cottage industry made from the minimum wage is called, "labor lawyers."
  
  Thanks,
  
  Robert

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  dkharley5903/27/08 Report as spam
  8

  RE: Starbucks' Tip Dilemma

  I have a problem with supervisors working the front counter in the first place. Unless a supervisor is in the position of staff shortage due to workers calling off or not showing or covering a break that is an exception but other than that supervisors should not be at the front counter. Maybe when a supervisor is working the counter their "tip" is donated to a worthy cause. I also have a problem when bartenders at private parties putting out a tip jar. This service has already been paid for and if the bartender is not being paid enough then they need to take it up with their boss. This is totally unacceptable but is becoming more common place.

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  psoucheray@...03/28/08 Report as spam
  9

  RE: Starbucks' Tip Dilemma

  This issue has also hit the Twin Cities. Managers who work the counter ought forgo the tips as a matter of leadership and management. Have to wonder, too, if management work at the counter is limited to rushes.

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  Nana Yaw06/13/08 Report as spam
  10

  RE: Starbucks' Tip Dilemma

  it's perfectly described as a DILEMMA; but once the law says it's for the worker bee, hmmmmmmmm! too bad for starbucks, but that is it.