By: Andrew Jimenez
Introduction
As the November 5, 2024, election approaches in Massachusetts, a heated debate is unfolding over Question 5—a ballot measure proposing to eliminate the lower minimum wage for tipped workers. If enacted, the measure would gradually raise the base wage for servers and bartenders to match the state’s standard minimum wage by 2029. While supporters believe this will offer financial stability to tipped employees, many in the restaurant industry fear it could have detrimental effects on both workers and businesses.
Current System Benefits Both Servers and Patrons
Under the existing law, tipped workers in Massachusetts earn a base wage of $6.75 per hour, with tips expected to elevate their earnings well above the state minimum wage of $15. Employers are mandated to compensate for any shortfall if tips do not meet the minimum wage threshold. This system has long been a staple of the hospitality industry, fostering a culture where exceptional service is directly rewarded by patrons.
Experts Voice Concerns Over Question 5
Dan Roland, CEO and co-founder of Katalyst—a company specializing in point-of-sale solutions for the hospitality sector—and his father, Bill Roland, founding partner and lifelong restaurateur, are among the experts raising concerns about Question 5. Owners of the successful Stoneforge Restaurants with multiple locations across Massachusetts, they bring firsthand industry experience to the discussion.
“Our servers and bartenders often earn between $20 and $30 per hour when tips are included,” explains Dan Roland. “The current system not only benefits them financially but also incentivizes high-quality service.”
Bill Roland adds, “By eliminating the tipped minimum wage, we risk standardizing earnings at a lower overall rate. Patrons may feel less inclined to tip generously if they know servers are receiving a higher base wage, which could inadvertently reduce our employees’ income.”
Potential Impact on Small Businesses
Critics of Question 5 highlight the strain that increased labor costs could place on small, family-owned restaurants. The hospitality industry often operates on thin margins, and a mandatory wage increase could force businesses to make difficult decisions.
“For many establishments, especially smaller ones, the added financial burden might lead to reduced staffing or even closures,” says Dan Roland. “This doesn’t just affect owners; it impacts the livelihoods of countless employees who rely on these jobs.”
Servers Fear Reduced Earnings and Flexibility
Many servers and bartenders themselves are apprehensive about the proposed changes. The current system allows them to capitalize on peak hours and provides flexibility that a flat wage might not offer.
“Our staff values the ability to earn more through their hard work and excellent service,” notes Bill Roland. “Question 5 could take away that opportunity and replace it with a less rewarding pay structure.”
The Role of Tipping in Customer Service
Tipping has long been embedded in the American dining experience, serving as a direct feedback mechanism between customers and service staff. It encourages a higher level of attentiveness and personalization.
“The tipping system empowers servers to go above and beyond for their guests,” says Dan Roland. “If we move away from this model, we might see a decline in service quality, which could affect customer satisfaction and repeat business.”
Economic Ripple Effects
Beyond individual restaurants and their employees, there is concern about the broader economic implications. Higher operating costs might lead to increased menu prices, potentially deterring customers and reducing overall revenue for the industry.
“We have to consider the cascading effects,” warns Bill Roland. “If patrons dine out less frequently due to higher costs, it doesn’t just hurt businesses—it impacts the entire ecosystem, including suppliers and complementary services.”
Advocating for a Collaborative Approach
The Rolands emphasize the importance of involving all stakeholders in discussions about wage reforms. They advocate for solutions that address concerns without jeopardizing the viability of businesses or the earning potential of employees.
“Any changes to the wage system should be made with input from servers, bartenders, and restaurant owners,” urges Dan Roland. “We need policies that support, not undermine, the people they are meant to help.”
Community Engagement and Awareness
In an effort to inform voters, industry experts like the Rolands are engaging with local communities to discuss the potential consequences of Question 5. They believe that a well-informed electorate is crucial for making decisions that will benefit the state’s economy and workforce.
“We’re encouraging everyone to look closely at what this measure entails,” says Bill Roland. “It’s essential to understand not just the immediate effects but the long-term impact on our local businesses and communities.”
Wrap Up
As Election Day nears, the “Say No to Question 5” campaign continues to gain traction among servers, bartenders, and restaurant owners who fear the loss of income and flexibility. Experts like Dan and Bill Roland bring valuable insights to the conversation, highlighting the potential risks associated with the proposed changes.
“This issue goes beyond wages; it’s about preserving an industry that thrives on personal service and rewards hard work,” concludes Dan Roland. “We hope voters will consider all aspects and join us in voting against Question 5.”
The outcome of the vote will have significant ramifications for Massachusetts’ hospitality sector. As the debate intensifies, voters are urged to weigh the potential benefits against the risks to an industry that plays a vital role in the state’s economy.
About the Restaurant Owners
Dan Roland is the CEO and co-founder of Katalyst, a company providing advanced point-of-sale solutions tailored for the hospitality industry. With a background in restaurant ownership and technology innovation, he offers a unique perspective on the operational challenges faced by eateries across the state.
Bill Roland, Dan’s father and founding partner of Katalyst, is a lifelong restaurateur with extensive experience managing successful establishments like Stoneforge Restaurants. His insights stem from decades of hands-on involvement in the industry, witnessing its evolution and the factors that contribute to its success.
Published By: Aize Perez
