Amaya restaurateur Hemant Bhagwani takes tipping off the menu

Hemant Bhagwani said he's been grappling with "retaining the best talent, the best people in the business" throughout his decade-long culinary career in Toronto.

So atthe newIndian StreetFood Company a reincarnation of Amaya Indian RoomBhagwaniis ditching tipping.

"I realized: Come up with a no-tipping policy, give [staff] more wages, let them share profits into the company," saidthe chef and owner of the Amaya fleet of restaurants.

• Bar Isabel closing earlier to give workers 'a little bit more rest'
• Danny Meyer's 'no-tipping' restaurant policy stirs up New York dining debate
• No-tip restaurants fight to gain traction

Instead,Bhagwanisaid, hewillcharge a 12 per cent administrative fee on every bill. He will alsoallocate 10 per cent of restaurant revenue toward higher wages forworkers.

"Instead of paying [staff] minimumwage, we create a pool and it goes into their wages, depending upon the positions, how many hours they're working," he said.

Ontario's currentminimum wage is $11.25.Depending on the position, staff wagesare expected to rise to between $18.25 and $20.25, he said.

Michael vonMassow, an associate professor of hospitality, food and tourism management at Ontario's University ofGuelph, said the tip-free restaurant idea is gaining tractionlargely because of"trouble keeping kitchen staff."

I've always felt the dishwasher in the restaurant works the hardest and he gets the lowest money.- HemantBhagwani, Amaya owner

He saida model such asthis one, aimed atpaying workers in the backofthehouse better, "will really help to lower the turnover that kitchens experience."

But retaining talented staff is only one part of the thinking behind the no-tipping stance,Bhagwani said. He also wants to encourage amoreequitableenvironment.

"I've always felt the dishwasher in the restaurant works the hardest and he gets the lowest money.

"I wanted them to feel a part of the restaurant," he said. "It's their restaurant as much as it is mine. That was key for me."

A wait-and-see approach

Going tipfree is adecidedly bold move.This week, New York restaurateur Danny Meyer saidhis13-restaurant empire will phase out tipping, making big waves in the restaurant and hospitality industry.

But B.C restaurantSmoke 'N Water, considered the first Canadian restaurant to abolish tipping,reinstated the practice after three monthsin 2014. Its customers simply did not buy the concept.

Bhagwani is not fazed and is taking a wait-and-see approach. In fact, he said the move toward fairer wages might encourage customers to return.

"I don't think customers will have an issue with it," he said. "When they know that a restaurantis paying a fair wage, Ithink it willbring people back into the restaurant."

At first, however, members of his wait staff were not convinced, he said.

"They thought I wascrazy," he said. "They thought it was bizarre. But Ihad toconvince some of them to stay with me and see how it goes."

Yatin Bhatia, service manager at the Bayview Avenue restaurant, said it is fair to divvy up gratuities with back-of-the-house workers.

"Some share of tips should be divided, not only with the kitchen, but with the dishwasher and people who are at the back. That's fair," he said.

As for the tip-free policy, he is eager to see its effect.

"Expectations are high. It should be positive. Let's see how it goes."

Will tipping be obsolete?

A tip-free policy is indicative of the restaurant industry thinking about its staffers' quality of life but also retaining long-term employeesbecause it makes business sense,von Massow said.

"People are important. Servers are important. Kitchen staffare important.They are an importantpart of our experience in restaurants," he said, adding that long-term staff contribute to the speed, consistency and quality of service and food.

"Turnover costs you money,but it also costs you your experience."

"Restaurants are recognizing this," he said.

Von Massowsaid diners are likely to feel relieved not to have to calculate atip.

"I think for a majority of customers itactually becomes a more pleasant experience."

Some will still tip

"It's kind of nice to not have to worry about [tipping]," saidKaren Lim, art director atFood & Drinkmagazine.

But it may not deter her from tipping altogether, she said.

"I would always leave a little bit more."

Lim added she feelsBhagwani's systemis fairer than the traditionaltipping model.

"Everybodyhas to worktogetherto put that meal together for a customer. It takes a team."

"They get a fairerpaychequeat the end of the day. Ithink everybody would appreciate it."

Zina Bezruk, who dined at the restaurant on its opening night, said it is "unfair" for only servers to get gratuities.

"Sometimes Ithink that they should share the tips and that doesn't always happen, so this is a fairer way of doing it."

Fairer or not, vonMassow anticipates going tip-free will becomemore commonover time and it "may eventually become a universal practice."

"Ibelieve this model is going to come. Is it going to come quickly? No. Is it going to come without some growing pains? No."

"Ithinkfor the right restaurantwith the right customer base it will be profoundly successful."