Dark Horse Espresso Bar addresses controversial tip-sharing policy
A Toronto coffee shop chain is facing considerable backlash online for implementing a controversial tip-sharing policy, in which tips are distributed between front-of-house staff, store management staff, and delivery workers.
Dark Horse Espresso Bar is a specialty coffee shop chain that has increased its presence throughout Toronto over the past 18 years and now services nine locations sprinkled throughout the downtown core and beyond.
A Reddit post made by a current employee at the cafe chain — who, for obvious reasons, remained anonymous — went viral on the social platform this week, garnering over 2,000 upvotes and nearly 500 comments.
“This is a throwaway account for personal protection reasons. But for those of you who don’t know, Dark Horse Espresso Bar has begun firing employees who have spoken out against their new tip pooling policy that began April 27, 2024,” the employee alleged.
According to the customer’s claims, the tip-pooling policy redirects 17% of the tips that baristas and front-of-house employees make and distributes them to bakers, upper management, front office, and logistics.
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“All of which are employees already in either salaried positions or making exceptionally more than baristas who start at minimum wage in the company,” the employee claimed.
“Until now, this hasn’t been shared very publicly, as it was written in employee contracts that employees would be subjected to pay reparations for ‘damage to reputation or any losses the company faces due to disparaging remarks.’ But now that the unjust firing has begun, it’s about time people know.”
The anonymous employee also alleged that there were multiple attempts by the chain’s workers to negotiate wages and have the new policy removed.
“However, corporate felt this was the ‘right decision.’ Due to intense backlash, wages were raised $0.75 per hour, which is A) nowhere near what the lost tips include, and B) will be negated once minimum wage increases to $17.20 in October of 2024,” they wrote.
“No matter the opinion on ‘tipping culture’ and it being out of hand, I need to point out that, unfortunately, barista jobs are often a minimum wage position, and in places like Toronto, it becomes very difficult to afford to live without relying on tips.”
Baristas, customers, and Toronto residents took to the thread to discuss the city’s tipping culture as well as the province’s minimum wage. While most folks on Reddit agreed that bakers and internal production staff should be entitled to a share of the tips, others raised concerns about them being distributed to management.
Others expressed that businesses in Toronto should explain to customers how tips get distributed to employees for transparency’s sake.
In a statement to blogTO, Dark Horse Espresso Bar confirmed that the company introduced an updated tip-pooling policy in April to “ensure fair distribution of gratuities among all team members” who take part in the chain’s operations.
“We believe that everyone involved in serving our customers should be involved in our tip pool,” the statement reads.
“The policy was implemented in consultation with our team and is aligned with employment standards regarding tip pool sharing. Additionally, we increased the base pay rate for all of our hourly employees, to mitigate the majority impact of this change on them.”
Dark Horse Espresso Bar maintained that no team members have been reprimanded due to the policy change.
The company says the breakdown of their tip-pooling distribution is as follows: 83% to front-of-house staff (including baristas, assistant managers, store managers), 9% to internal production staff (responsible for making coffee, pastry, bread), 4% to internal delivery staff, 2% to store management staff, and 2% to support staff who assist with vital day-to-day store operations including ordering, fulfillment, hiring, and technology.
“We value and respect the feedback of our team members and remain committed to supporting them with competitive wages and a positive work environment,” the company told blogTO.
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