Tips Eliminated, Another Charge Implemented

Kachka eliminated tipping this week, replacing that model with a 22% service fee. This creates a base wage of $25 an hour for all employees, and they’re also able to provide healthcare. The owners of the Russian-inspired Portland restaurant say the tipping system is rooted in inequality.

Owner Bonnie Morales said so far, the feedback has been mostly positive. But she has heard critiques from those who say they like to reward good service with tips. Morales said she recognizes other locations in Portland tried this model before, and ultimately went back to allowing tips. “They folded that money into the cost of the goods, so they just raised their prices, and unfortunately, as a society, that doesn’t work because we’ve been conditioned for so long to pay for service outside of the cost of goods,” she said. Morales said tipping often benefits those working in the front of the house, while back of house employees don’t usually see tips. 

“We fell in love with the hospitality industry because we love taking care of others. In reality, we came up in an environment that never considered taking care of its own. For too long the restaurant industry has propagated a system of inequality, racism, and discrimination,” owners Bonnie and Israel Morales wrote. “In opening our own business, we could finally correct these inequities, but were scared to make waves in an established system. It’s time to break from the dysfunctional status quo.”

The biggest change for customers will be no longer choosing a tip amount for servers and other staff. “We know that it’s a big ask for our guests to relinquish control over tips, but we hope the last eight years have shown that we are trustworthy operators with no ulterior motives,” the Morales wrote. “We want you to know that by being a patron at Kachka, your money is going to a small business striving to create a positive and enriching workplace.