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Rethinking Server Pay: The Commission Model Revolution with Zach Feinstein
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Traditional tipping is broken, but there's a better way to pay your restaurant staff. In this episode of The Pre-Shift Podcast, we talk with Zach Feinstein, CEO of The Feinstein Group, about the innovative compensation model transforming his Tampa Bay restaurants. Zach explains how implementing a 20% service charge coupled with a commission-based pay structure for servers has dramatically reduced turnover, improved front and back of house relationships, and enhanced the guest experience. Instead of hoping for generous strangers, servers earn a guaranteed commission on sales while still collecting additional gratuities. Meanwhile, kitchen staff benefit from higher wages funded by the redistributed server hourly pay. This compensation revolution isn't just about money—it's about creating stability for your team and consistency for your guests. If you're struggling with retention or looking for a more equitable pay structure, Zach's practical insights offer a roadmap to transform your restaurant's culture.
Resources
Connect with Zach Feinstein 🔗
Visit: The Living Room 🍽️
Visit: The Black Pearl 🦪
7shifts Restaurant Staff Retention Guide 📝
Chapters
- 00:00 - Introduction to Zach Feinstein
- 01:40 - The Feinstein Group's restaurant history
- 03:08 - Why Zach developed a commission-based payment model
- 05:27 - How the commission model works in practice
- 08:57 - Customer response to the service charge approach
- 11:04 - Benefits for servers: eliminating "table bias"
- 15:21 - Improving front and back of house relationships
- 17:50 - Competing with other industries for talent
- 20:07 - Is this model right for every restaurant?
- 23:42 - Getting started with a commission model
- 24:42 - Lightning round: Training opportunities and inspirations
📲 Connect with D.J.
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About Us
7shifts is a scheduling, payroll, and employee retention app designed to help restaurants thrive. With an easy-to-use app and industry-specific solutions, 7shifts saves time, reduces errors, and helps keep costs in check for more than 50,000 restaurants.
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