Chicago restaurants rethink tipping amid pandemic-born industry shifts

José Gonzalez has worked at Topolobampo, a Mexican fine-dining restaurant owned by celebrity chef Rick Bayless, for a decade.

Before the pandemic, Gonzalez’s take-home pay included tips and an hourly wage that was less than the standard minimum wage, a practice allowed in Illinois and most U.S. states.

But being paid in tips was challenging. Gonzalez said his earnings weren’t predictable, and he made less in the winter than he did in the summer. Applying for apartments or credit cards was difficult because his full earnings from the River North restaurant weren’t documented on his paychecks.

Then the pandemic hit. In summer 2020, as Bayless scrambled to figure out how to keep his restaurants open, he decided to try something new. He did away with most tipping at his Chicago restaurants Frontera Grill, Bar Sótano, Xoco and Topolobampo. Bayless instead implemented service fees and started paying staff higher base wages.

Now, diners at Topolobampo pay a 20% service fee in lieu of a traditional tip. (Customers are permitted to leave something extra on top of the fee if they want to, and some do,