We believe the traditional restaurant compensation model is broken. It fails to provide the kind of stability and equality of pay we owe to our employees. There is currently a deep pay disparity between those working behind the scenes, in kitchens and dish rooms, and our front-of-house service staff, despite both teams being critical to the guest experience. This is largely a product of the customary tipping system in the U.S. -- a system that data has shown suffers from bias and discrimination and which this pandemic has laid bare the vulnerabilities. We feel compelled to offer a different business model to our employees, our community, and the industry as a whole; one that ensures workers receive fair and equitable pay in a transparent way.
At Eastern Point, we offer all of our hourly team members between $17 and $21 an hour, and work to offer them sufficient hours of work per week to earn a living wage. We cover 50% of health, dental and vision insurance premiums for our hourly team members after 90 days of employment and 100% of those premiums for our managers after 30 days. We believe good pay and an open dialogue leads to a stronger, happier team, and ultimately, a better experience for you as a guest.
To cover our increased payroll expenses, we have added a 22% service & equity charge to all dine-in, take-out and delivery orders, instead of charging an automatic gratuity on the bill or manipulating menu prices. This 22% goes directly to payroll and benefits for our team—100% of it. We aim to increase benefits as the business becomes more stab, once we are able to get to the other side of this pandemic. Based on our experience and research, we think this is the best way to help bring positive change to the hospitality industry.
Should you tip too? There is no need to leave a tip, but if you do, we will split it evenly among the hourly team members working during that shift. Our managers never receive any portion of the tips left for the hourly team.
We will continue to seek new and innovative ways of operating restaurants that create a better life for employees and a better community for our neighbors and guests.
Thank you for supporting us in this journey.
Hollis Wells Silverman
CEO, Eastern Point Collective