Hedge Coffee, The San Francisco Cafe That Removed Tips In Favor Of Paying Baristas $30/hour – CoffeeTalk

Hedge Coffee, which opened in San Francisco’s Mission District in late October, has garnered attention for both its exceptional coffee and the absence of a tipping system. Unlike most coffee shops, Hedge does not accept tips; instead, gratuity is incorporated into the menu prices, which range from $5 for a batch brew to $9 for a vanilla latte. This model has become more frequent among Bay Area restaurants post-pandemic to enhance employee wages but remains rare in the coffee sector. Hedge Coffee emerged from co-owners Olga and Alex Sobal’s previous endeavors in the coffee events business, and they aim to demonstrate that a tipless model can be viable.

The pandemic has intensified discussions about tip culture, with growing frustrations regarding increased tip requests and surcharges. Sobal, who expressed opposition to the tipping system, noted that it creates uncertainty for baristas whose earnings rely on customer gratuities. At Hedge, baristas earn $30 an hour, significantly above San Francisco’s minimum wage, which helps provide a stable income. The owners hope to offer additional benefits such as health insurance by 2026, following successful models established by other local businesses that have gone tipless.

Customers have shown mixed reactions; while many are pleasantly surprised by the tip-free model, some have expressed concerns over the relatively high prices. The Sobals believe the pricing reflects not just the coffee but the entire café experience, enhanced by an aesthetically elaborate space featuring a DJ booth and a stunning design. Hedge generates revenue from hosting coffee events, providing it with a financial framework that may not be available to all coffee shops attempting similar models.

Despite their innovative approach, the Sobals are cautious about promoting their tipless policy too aggressively, citing previous instances where businesses reverted back to tipping due to financial pressures or customer demand. Nonetheless, they are in a unique position to evaluate the success of the tipless system in their establishment.

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