KC-area restaurant franchise changes tipping protocol for servers
INDEPENDENCE, Mo. – A restaurant franchise with locations on both sides of the state line has been in hot water on social media after a letter to employees surfaced.
It talks about tip money coming out of servers’ pockets when patrons use credit cards to tip due to processing fees.
Employees with Twin Peaks sit on both sides of the change.
A Twin Peaks employee sent the letter to FOX4. The letter is addressed to “3B Lodge Employees,” which includes Twin Peaks restaurants in Kansas City, Independence, Olathe and Wichita, according to a manager.
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The letter says, starting this year, the restaurants will implement a tip refund for credit card processing fees on certain credit card transactions.
For each dollar in tips received through Visa, Discover and Mastercard, a 2.5% refund will be deducted from a server’s final checkout. For tips through American Express, a 3.25% refund will be deducted.
“It goes out to be about .25 cents like every $10,” Twin Peaks server Isabella Palkowitsh said.
“Instead of girls claiming 100% of credit card tips, they now only claim 90% to make make up for the about 2% that was charged back,” a manager at the Independence location said.
She said her employees are OK with the change, including Palkowitsh.
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“We get it made up for other ways within the company,” Palkowitsh said. “They take care of us pretty well when it comes to that. So I’m not as worried about that if I’m being honest.”
FOX4 talked to another employee at the Kansas City location who didn’t want to speak on camera. She’s not happy about the changes.
“They are going to put their business expenses on their employees who live off their tips,” the server said.
Community member Al Rettenmaier said he understands the concerns.
“That’s not good,” Rettenmaier said. “I think the servers need to be compensated as much as their tips as they can, 100% really.”
The hit servers take only applies to credit card tips, not cash tips.
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“I never carry cash,” Rettenmaier said.
Twin Peaks owners didn’t want to comment. However, in the letter, they blame rising operating expenses and said, “we understand this implementation may raise concerns, and we assure you that this decision was not made lightly.”
The Independence manager said they installed an ATM inside their restaurant. Palkowitsh encourages people to tip in cash.
