In Nov 2022 we started conversations with other shops in the city as well as our staff about switching our tip structure to included a guaranteed wage including base pay plus tips. We had seen this tranistion happen at other shops within the industry and, while we recognized the sacri liked the stability it offered to our staff in slow months. At the time we paid a base rate of $11 - $15 an hour plus tips, depending on job responsibilities. We did not guarantee any additional payment.

In Sept 2023, after months of research, talking with other shops and having conversations with managers & staff, we made the decision to move to $18.00 - $22.00 guaranteed (base plus tips). This means that no staff member will make less than $18.00 an hour with PH Coffee paying the difference. With this model of pay our base rate is $9 - $13.50 with a guarantee min of $18.00 - $22.00 (base plus tips depending on responsibilities). We also have non tipped positions that range from $14 - $20 an hour. Current Missouri minimum wage for non tipped staff is $12.30. Missouri minimum wage for tipped staff is $6.15

PH Coffee enacted this pay restructure that involved a one time reduction in base rate in conjunction with a guaranteed rate of $18.00 an hour that we carefully considered with all of our staff, managers, legal counsel over a period of months. This included multiple meetings, both groups and one on ones, with transparent communication to each and every staff member. PH Coffee retained 100% of our staff when we transitioned to this model. There is never an ideal time to restructure how to pay your staff but, a huge thank you goes out to all of our staff for their willingness to compromise and for their trust in PH Coffee to reset and move to this system.

Sources:

https://rb.gy/d0dn5y (Missouri Labort Department Website)

If you have additional questions about our this program, email us at info@ph.coffee with subject line of “Transparency question about living wage”