At Red Hen, we’ve chosen not to use a tipping model. That decision is intentional, and it reflects the kind of workplace and culture we want to build.
Instead of relying on tips, we build compensation directly into our pay structure. We believe employees should earn dependable, transparent wages that are not tied to the mood of a shift, the season, or a customer’s decision at the register.
Our Approach to Pay
We review our pay ranges annually using:
-
Vermont Department of Labor wage data
-
Local market comparisons
-
Cost of living considerations
-
Internal equity across teams and departments
For customer-facing roles that traditionally rely on tips elsewhere, we build a tipping differential directly into the wage range. Our compensation model is designed with the understanding that these positions would typically receive tips in a traditional model.
We aim for employees to earn competitive, livable wages without depending on variable gratuities to make up the difference.
Why We Believe This Matters
Predictable Income
Tips can fluctuate dramatically day to day and season to season. We believe employees should be able to count on what they earn.
Equity Across Teams
Every role at Red Hen contributes to the customer experience and the success of the business – from bakers to baristas, dishwashers and slicers alike.
A tipping system often disproportionately rewards only the employees that customers directly interact with, even though the work behind the scenes is equally essential.
Our model is designed to recognize the value of the whole team.
Incentivizing the Right Behavior
We want employees focused on:
-
teamwork
-
consistency
-
quality
-
supporting one another
…not competing for tips, upselling unnecessarily, or prioritizing certain customers over others.
We believe great hospitality comes from expertise, care and professionalism, not from pressure tied to gratuities.
What this means for our customers
Instead of leaving a tip when visiting Red Hen, customers have the option to make a donation to a staff-selected charity. We rotate these organizations throughout the year, focusing on groups that support our community and values.
Many customers appreciate the clarity and consistency of this approach once they understand it, and the charitable giving option allows guests who would normally leave a tip to still contribute in a meaningful way.
Our Commitment
This model only works if we continue to invest in wages, benefits, and long-term sustainability for our employees. We are committed to continuous review of our processes and policies to ensure Red Hen is a place where people can build meaningful, stable work over time.
We know no compensation system is perfect, but this approach best reflects Red Hen’s values of fairness, transparency, teamwork, and shared responsibility.