"How might we improve the experience of restaurant workers in financial crisis?"

TEAM

In most places in the United States the majority of restaurant worker's earnings come from customer tips. Because of this payment dynamic, restaurant workers remain some of the most at risk for financial crisis. Due to the inconsistency of busy and slow nights, as well as often not receiving healthcare from their employers and paid time off, workers bare much uncertainty with little support.

Aditi Kapre

Damian Ashton

Grace Kang

Jen Ulloa

Sky Wei

ROLE

Research Interviews

Probe Design & Facilitation

Strategy

Co-Design

Creative Direction

Testing

DURATION

Four Months

CHALLENGE

Currently, at a federal level employers are only required to pay $2.13 per hour to workers and the rest is to be made up through tips. Not surprising, the department of labor reports every year that seven out ten of the lowest paying jobs are from the restaurant industry. Out of the 7 lowest paying jobs in America, 4 are tipped occupations. So even including tips, restaurant workers make up 4 of the 10 lowest paying jobs in America.

If restaurant work and tipped occupations create so much uncertainty and financial crisis, why haven't there been changes to the tipping system, and what's more, why is tipping well regarded? Much of the barriers surround beliefs and perspective on tipping, which is consistent among both workers as well as customers.

LINES OF INQUIRY

FIRST INQUIRY

Inquiry at outset:

What are the impacts of the tip-based system on workers?

SECOND INQUIRY

Deeper line of inquiry: What are worker and customers thoughts and opinions on tipping?

THIRD INQUIRY

Refining the Inquiry: What may disrupt the deeply entrenched belief in tipping among workers and customers?

INSIGHTS

The subminimum wage system facilitates toxic power dynamics that leaves workers vulnerable to financial instability.

“The manager has the power to end the shift whenever there is less crowd, in order to save money. “ - Restaurant Worker

“Customer can make or break my shift.” - Restaurant Worker

Tip-based restaurant work is a lot like gambling. You either win big or lose big

“I know if I work Friday nights and Saturdays, I don't always know how much I’ll make but I know I can make $200-400.” I know you get paid for the three hours you clock in regardless, but if you only make $20 worth of tips, and you only leave with $20, that’s it you only leave with $20” - Restaurant Worker

The tipping system is tied to a false idea of the American dream- if you work hard, you reap the rewards

“I like knowing that I’m providing a service, and if it’s good, I get a good tip.”

- Restaurant worker

"It's tradition." - Customer

"Hard work deserves good pay." - Customer

OPPORTUNITY:
Communication Design and Strategy

In order to provide more financial security to tip-based workers we need to confront and dismantle the gratuity system. We spoke with several organizations that aim to address the financial insecurity in the industry, including grants, policy lobbying, as well as reimagining restaurant earnings structure by including gratuity into the cost of dining. Although these initiatives, especially policy, will have direct and lasting impact, there is still a need to address the beliefs and values people have on tipping.

For this reason we developed several campaigns and tools to support the awareness of the problems of the tip-based systems as well as tools for customers, those with the purchasing power, to support a shift to alternative earning structures instead of tipping.

The three interventions include a Yelp-like ad for customers and workers to rate the quality of the working environment as well as find and patronize restaurants with ethical treatment of employees. Second is a restaurant fair-wage certificate badge, like the department of health posters, that participating restaurants can hang in their window, both to attract customers based on their employment ethics as well potential employees. Last is a general educational campaign using public ads, such as subway posters to h illuminate the fallacy of the tip-based system