Rethinking Server Pay: The Commission Model Revolution with Zach Feinstein

Traditional tipping is broken, but there's a better way to pay your restaurant staff. In this episode of The Pre-Shift Podcast, we talk with Zach Feinstein, CEO of The Feinstein Group, about the innovative compensation model transforming his Tampa Bay restaurants. Zach explains how implementing a 20% service charge coupled with a commission-based pay structure for servers has dramatically reduced turnover, improved front and back of house relationships, and enhanced the guest experience. Instead of hoping for generous strangers, servers earn a guaranteed commission on sales while still collecting additional gratuities. Meanwhile, kitchen staff benefit from higher wages funded by the redistributed server hourly pay. This compensation revolution isn't just about money—it's about creating stability for your team and consistency for your guests. If you're struggling with retention or looking for a more equitable pay structure, Zach's practical insights offer a roadmap to transform your restaurant's culture.ResourcesConnect with Zach Feinstein 🔗Visit: The Living Room 🍽️Visit: The Black Pearl 🦪7shifts Restaurant Staff Retention Guide 📝Chapters00:00 - Introduction to Zach Feinstein01:40 - The Feinstein Group's restaurant history03:08 - Why Zach developed a commission-based payment model05:27 - How the commission model works in practice08:57 - Customer response to the service charge approach11:04 - Benefits for servers: eliminating "table bias"15:21 - Improving front and back of house relationships17:50 - Competing with other industries for talent20:07 - Is this model right for every restaurant?23:42 - Getting started with a commission model24:42 - Lightning round: Training opportunities and inspirationsSend us Fan Mail📲 Connect with usEmail usFollow on LinkedInMore 7shiftsSpotify | Apple Podcasts | Google PodcastsSubscribe to Food Runner, our Monthly Restaurant Newsletter7shifts on YouTubeFollow us on TikTokRead the 7shifts BlogAbout Us7shifts is a scheduling, payroll, and employee retention app designed to help restaurants thrive. With an easy-to-use app and industry-specific solutions, 7shifts saves time, reduces errors, and helps keep costs in check for over 50,000 restaurants.