Discourse continues to swirl around I-82 and the DC restaurant scene. Consumers are confused and annoyed by service fees, their implementation and what shape the food scene will take in DC over the next few years. Restaurant owners also seem skeptical of the future, navigating inflation, new labor costs, and other hurdles that have cast a shadow on the capital’s culinary institutions.
A ton of the conversation has circled around rising wages that I-82 will bring. Supporters of I-82 say that this will help bring fair wages to tipped workers, and normalize an exploited labor market. It will also not place the burden on consumers to feel obligated to tip for people’s livelihood, but instead tip for good service. Opponents of I-82 state that this will place too large of an administrative and financial burden on restaurants, and staff of many restaurants also feel like this will end up making less money.
As the debate has gone on, I feel like some crucial information has been missing from the conversation. The claims that restaurants would not be able to take on the financial burden, mixed with the staff claims that they will make less money seemed like guess work. I would read articles, talk to people in the industry, and often walk away thinking the same thing, I want to see your books. To me, this is an accounting and math problem that no one wants to solve.
Luckily, I was in a position to try and examine some numbers, even if they were out of date. I have worked in the DC restaurant industry on and off from 2015 to 2020. I decided to go back and look at my old bank and tax statements to try and place some numbers on this conversation.
I will start in 2017. While I worked in college as a bouncer and barback, it was intermittent and hard to create a clear picture of payment. I graduated college in May of 2017, and started working as a server soon after. This breakdown will show what the restaurant paid me. It will not include cash tips I made (minority of what I made, vast majority of people pay by card).
| June | $928.69 |
| July | $1,243.01 |
| August | $1,919.29 |
| September | $909.69 |
| October | $1,097.64 |
| November | $954.02 |
| December | $999.24 |
| Total | $8,051.58 |
I will add some context, because people are probably curious how I survived. From June to August, I lived in a twin bed under the stairs in a friend’s house. I was Harry Potter. It was a nice group house that had about 8 bedrooms plus one under the stairs. I paid about $700 for the summer. After that I moved into a townhome with friends, and paid $750 a month in rent. Also, the restaurant was pretty chill about the staff eating and drinking their food, so my bills were very low. Finally, being 23, I was still on my parents phone and health plans.
Now for 2018. Starting in January of 2018, I gained an internship on the Hill. It had a stipend of $500 a month. My main source of income was still tips via customers. Working two jobs was no fun. The breakdown will not include my Hill stipend.
| January | $1,705.43 |
| February | $1,196.42 |
| March | $952.99 |
| April | $859.62 |
| May | $1,272.78 |
| June | $2,401.12 |
| July | $1,356.55 |
| August | $1,331.09 |
| September | $707.15 |
| October | $812.94 |
| November | $850.44 |
| December | $292.9 |
| Total | $13,739.43 |
This year was more stable than the previous one. I was making enough to get by, and starting in August I gained a salaried position once my internship ended. I also moved to a different restaurant group. Over this year I had moved on from server to bartender. As I transitioned into a full time salaried job, I took less hours in the restaurant field, and you can see the drop off occur between August and September.
In 2019, I worked much more sporadically, because it did not need to be my main source of income, just had to supplement my salary. I accessed my 2019 tax return to see the total made in 2019, instead of having to go through each month individually. In 2019, I made $5,876.72 working in restaurants.
Conclusion:
For a variety of reasons, I was able to make this lifestyle work. I lived in cheap group housing with friends, had family support, and often had more than one source of cash coming in. But it was definitely difficult. But I think it can help tell a story.
First, all the restaurants that I worked at are still running in DC. The first place I worked at in 2017, that ownership group has opened other restaurants in the DMV area. I moved on from them to a restaurant group that has many locations in DC. Both places I worked at for them are also still open. Even with all the struggles the industry is facing, they obviously have made money.
I wish that I had a better breakdown of hours worked, but I gained a general idea as I went along. I will note (specifically in 2017) I remember a few times when tips did not cover what would have been DC minimum wage for the hours I worked and the restaurant had to match what I would have been owed. I don’t think it ever occurred once I transitioned to bartending. As I was exploring my old statements, the transition between employers helped paint a clearer picture of hourly wages. The first place paid me via direct deposit in a lump sum of tips and hourly wages. The second I would go in and pick up physical checks. One check represented tips, the second was my wage. This left a very funny trail in my bank, as there would be back to back deposits that would look like $121 for one and $17.25 for the other. And this visualization of the back to back deposits of tips vs wage is what I want people to understand.
From how I see it, the money is being spent. People were coming and patronizing these restaurants, and spending enough money to support the restaurant, and my livelihood. As I-82 takes effect, restaurants need to step up and work with staff. For consumers, the lump sum being spent at these institutions shouldn’t change much, but instead of it being luck and charity determining staff’s weekly pay, a normalized hourly wage will take its place.
Final takeaways:
- Restaurant staff, do not assume that I-82 means you will make minimum wage. Look at what you are making now. That should be your hourly rate! People are already spending that money! If the restaurant institutes a service fee and pays you significantly less, you are being ripped off.
- Restaurants need to work with their staff to find a balance. This industry is very boom and bust. Some weekends are trash, others will pay your whole rent. But over time a median will form that should show both parties what a fair wage would be.
- Not all places are struggling, and new restaurants continue to open. I think places will figure out this balance, but it should happen sooner rather than later. Consumers and staff will be hurt during the transition, especially if restaurants fight the change instead of adapting.
- Adjustment will have to happen. But the money is being spent. Managers and owners should compile the total amount of tips made during a month. Would give a good idea of what people are already spending at their restaurant. That knowledge could help them plan how best to pay staff, and what menu adjustments are necessary.
- A lot of restaurant work is not great pay, as you can see from my breakdown. While I know a lot of people make good money, a lot of others basically make minimum wage. The current system allows for uncertainty and exploitation, as tips are not reliable, and often can be stolen.
I hope this breakdown can give people a visualization of what staff could be making at restaurants, and a better understanding of how owners should work to figure out how to take the total sum consumers are spending (bill+tip) and translate it into living and fair wages for their staff.