What is a “Living Wage Fee”?

In order to properly explain this, we must first explain how pay is handled in the service industry. The hourly minimum wage for servers in NC is $2.13 and $7.25 for other FOH (Front of House, eg. Hosts, Server Assistants, Bartenders, etc. ) staff and BOH (Back of House, eg. chefs, dishwashers, etc.) staff who are considered “non-tipped employees.” These employees may or may not be included in the “tip-pool” whereas they may or may not receive a percentage of tips from customers.

Due to rising overhead costs, slim industry profit margins, and a minimum wage that won’t budge, some restaurants in the industry have taken it upon themselves, including Lula & Sadie’s, to bridge this gap in order to provide a more sustainable livelihood to our hardworking employees.

Restaurants that charge a “Living Wage Fee” or “Service Charge” have the option to absorb this amount into the business and use it however they choose with the ethical understanding that this be disclosed to the staff and customer. In our case, we have decided to split the 20% charge among all FOH and BOH staff that worked during the day/time that it was received. For us, this charge is not absorbed by the business, but rather divided up and split between traditionally “tipped” and “non-tipped” employees…which brings us to explain more about…

2. What does the “Living Wage Fee” mean at Lula & Sadie’s?

At Lula and Sadies, we believe in fair compensation for our hardworking team members. The “Living Wage Fee” is a flat 20% charge added to each bill, which allows us to pay all our staff members a living wage that exceeds the minimum wage requirements. We pay all staff members, no matter of position, a starting hourly wage that is considerably higher than the living wage. Because of this very intentional decision, our staff are able to take home their hourly wage + their portion of the “Living Wage Fee” collected at the time that they worked ensuring that all staff make above and beyond a living wage for Durham. The Living Wage in Durham County is $18.40 for a single adult with 0 dependents.

3. Why do you have a Living Wage Fee?

As a family-owned and community-oriented establishment, we are deeply committed to the well-being of our employees. The “Living Wage Fee” enables us to support our staff members by providing them with wages that go beyond the standard minimum wage. This initiative is part of our effort to foster a positive work environment and ensure that our team members can thrive both personally and professionally.

4. How much is the Living Wage Fee?

The “Living Wage Fee” is 20% of the total bill. The fee is transparently listed on our menus, website, and posted around the restaurant. Most importantly it is clearly stated on  the bill, allowing our guests to see the exact amount that contributes to fair employee compensation.

5. Is the “Living Wage Fee” mandatory?

Yes. The “Living Wage Fee'' is a contribution to support our commitment to providing a living wage to our employees. We greatly appreciate any support towards this initiative, as it directly impacts the livelihoods of our dedicated team members.

6. How do you use the “Living Wage Fee” funds?

The entirety of the Living Wage Fee goes directly to our employees, enabling us to provide fair wages that align with the cost of living in our community. Your contribution helps us create a more sustainable and equitable work environment for our team, which ultimately enhances the overall dining experience for you, our valued guests.

7. Are there other ways I can support your staff and the community?

Absolutely! Besides the Living Wage Fee, there are various ways you can contribute to our community efforts. You can spread the word about our restaurant, join us for special events, or participate in community programs and partnerships we are involved in. Your continued patronage and support mean a lot to us and the local community.

8. How do you ensure transparency with the “Living Wage Fee”?

We are committed to complete transparency with our guests. The “Living Wage Fee” is always itemized separately on your bill, and we are more than happy to answer any questions or provide additional information about the program if needed.

9. Can I leave an additional tip on top of the “Living Wage Fee”?

Absolutely! While the “Living Wage Fee” goes directly towards our employees, if you wish to show your appreciation for exceptional service or further support our team, you are more than welcome to leave an additional tip for your server.

We hope this FAQ provides clarity about our “Living Wage Fee” and why it's an essential part of our commitment to our team members and the community. Thank you for being a part of Lula & Sadies, where great food and genuine care for our employees and customers go hand in hand.