The Commission Model @ The Feinstein Group
About our Commission Model
Why We Implemented this Model
Our aim is to professionalize one of the only industries in the world that has no guaranteed income for the service provider, (i.e., the hospitality industry). We have adopted a service model that utilizes a sales commission for every dollar sold for an employee, regardless of discount. This commission-based system has been in use for decades.
Our commission approach is modeled after the system developed by Fire and Vine Hospitality in Seattle, Washington. In implementing this model we worked diligently to ensure ALL service staff members make at minimum what they were before we launched this compensation model. Instead, we are seeing that everyone is actually making much more. Indeed, our data indicates all wages increased in non-commissioned roles. We recognize that this model represents a paradigm shift. But, at a time when so many find it difficult to sustain a livelihood in the hospitality industry, our model uses a unique pay system to ensure all employees obtain a living wage and are properly compensated for their efforts. If you go to a car salesman to get a car, and it doesn’t go the way you had planned, you don’t get the opportunity to hurt the individual’s income. Inexplicably, that is the standard in the hospitality industry. We want to change that. Permanently. Below we have set forth the math and documentation behind our compensation models, accompanied by employee testimonies, and the general overview of how our company compensates its people So that our hospitality individuals have a stable and steady income.
We were asked to speak at the Florida Restaurant and Lodging Association on a panel with other restaurateurs that have rolled out the same model. We spoke to 500 restauranters, including large corporate chains. We anticipate this model will begin to get implemented all over the state. This is because the truth of the matter is we aren’t competing with other restaurants for staff, we are competing for staff with Amazon, Google, and Big Companies with fat bottom lines. This model ensures us to be able to attract top talent while always putting the employees first.
How We Got Here
This model was the product of an intensive and deliberate process. We hired a group of labor consultants that are at the top of this field (commission-based pay) in the nation, Fire and Vine Hospitality CEO Chad Mackay, and Charles Musgrove of Capserv360 Accounting. We used real pay data to determine the best way to offer all positions the best pay across the board. We hosted meetings with all employees and showed them their actual individual difference in pay using actual previous pay data of that employee. We created table tents and FAQ sheets, We created videos explaining that this model is used to ensure livable wages for all staff members. We thought we did enough, but after the backlash we realize full open book from day one would have better addressed a lot of questions we have since received from our patrons. We appreciate and value our employees. It’s why we did this. So, here it is!
Below is the Living Room concept and the math behind how it works, versus the old tipping model to show why it is ultimately better for the employee.
Some Notes:
The $1/hr wage enables us to raise kitchen wages drastically
100% of the Service charge goes to paying FOH employees (as your tips did before)
