Is Kentucky Restaurant a Meatball Head for Not Accepting Tips?

yes…and no


As a one-eighth Italian, I love meatballs. So when I found a restaurant an entire menu dedicated to meatballs, I was excited. Turns out, meatballs aren’t the only thing that sets Packhouse Meats in Newport, Kentucky, apart. This restaurant also has a no-tipping policy.


That’s right: People eat, pay for their food, and then leave without dropping so much as a stick of gum for the server (I hope you’ve never left a piece of gum as a tip).

Instead of letting the customer decide how much to skimp out on the wait staff, Packhouse servers earn either $10 per hour or 20 percent of individual food sales per shift—whichever is larger.

According to the Indy Star, Packhouse owner Bob Conway said he is enforcing this policy to protect his servers and ensure they can support themselves through their paychecks. To compensate, Conway charges more for his meatballs than he would if his servers earned tips. Higher food prices help cover the cost of paying his staff, as well as the typical expenses of running a restaurant.

So a single meatball that would only cost 60 cents to make, ends up costing about $3. For the customers, the price is the same as if they had left 20 percent tips.

Packhouse servers, all working part time, earn an average of $15 per hour, plus any extra cash customers leave behind.

Some people are not sold on the idea however, saying it takes away from a server’s drive to excel. Christian Fernandez of the National Restaurant Association said, “the restaurant industry is a still a heavily service-based industry, and tipping promotes the spirit of hospitality that is traditionally associated with our workforce.”

Will lack of competition between employees breed indifference toward service quality? Servers who aren’t incentivized by large tips may never go the extra mile to learn all the details of wines, food, and etiquette—at least, that what some fear.

Either way, servers are guaranteed a steady paycheck and financial security that some wouldn’t have based on tips alone. As to whether or not customer service will go out the window as a result, the jury is still out.

So is Packhouse a meatball head? Yes—but more because of their variety of tasty meatballs than because of their tipping policy. Only time will tell as to whether the policy will be beneficial.

What do you think? Should all restaurants do away with tipping?