Cingari Family Markets executive chef Matt Alexander, aka “Chef Nasty,” tells Fox News Digital why he believes customers would receive superior service if chefs and servers earned livable wages.
The 2024 election cycle has sparked another cultural uproar over upheaval in the restaurant industry, and front- and back-of-house workers want to make sure their opinions on the debate are heard.
“It would be huge. But it also goes both ways,” New York tri-state area executive chef Matt Alexander, commonly known as “Chef Nasty,” told Fox News Digital. “I think we should just eliminate tipping altogether. I think you’d get a superior experience if you just paid people a higher wage.”
“I don’t support this idea because I think paying taxes is kind of what we do as American citizens,” West Palm Beach-area server Olivia Kerwin also told Fox News Digital.
“So I don’t think that just because someone earns their salary by receiving tips means that they shouldn’t be taxed on their income, like anyone else in a different profession would be,” he added.
JON TAFFER, THE PRESIDENT OF ‘BAR RESCUE,’ SAYS TRUMP’S COMMITMENT ON TAX-FREE TIPS IS ‘MAXIMUM’
Both presidential candidates, Vice President Kamala Harris and former President Donald Trump, have publicly expressed support for a tax-free tip plan, which would end payroll taxes.
Do restaurant chefs and waiters have different opinions on how to tax tips? “Chef Nasty,” aka Matt Alexander, and Florida server Olivia Kerwin reveal their answers to Fox News Digital. (iStock)
Trump reportedly first announced the idea in June during a campaign stop in Nevada, while Harris announced during a campaign speech earlier this month – also in Nevada – that she would like to do the same.
“It would definitely hurt you if you worked so hard for these tips, [then] they will be taxed on you. But I think, for me personally and a lot of other people in the back of the house, if we’re working hard and we’re fully taxed, I think they should be taxed too,” Alexander said.
“I think we’ll take it home [pay] it would be bigger, but I think it would be more of a short-term gain, because most people in the industry don’t save their money properly,” Kerwin responded.
“Speaking from personal experience… you get into the mindset of, ‘Oh, well, I made $200, $250, $300 tonight. I can go out and spend it on this, and then I’ll just take a shift and make it.’ Backwards.’ And it becomes kind of a vicious cycle.”
Former President Trump explains how he plans to not impose a tip tax during the Republican National Convention.
Harris and Trump’s proposals, neither of which contain details, are likely to be popular among service industry players. However, the question remains whether they constitute good economic policy.
The nonpartisan policy group, the Tax Foundation, estimated that such a proposal would work it costs at least 10 billion dollars a year and will result in a $100 billion reduction in tax revenue over 10 years.
“I don’t think we’re going to be the superheroes here, that are going to take us to the next level that we need to go to in terms of the national debt. But I feel like the pay needs to be higher,” Alessandro said.
“And now it’s getting higher especially in fast food, but in typical full-service restaurants, I think there definitely needs to be a change,” he added. “With the cost of goods coming down from what we saw during COVID, I think there’s an opportunity now to really turn the tables, so to speak, and put some new, fresh ideas into action.”
“Thinking about the big picture and thinking long term,” Kerwin countered, “I feel like even if my salary went up because I wasn’t being taxed on my tips, what would happen in the future?”
“If I don’t pay taxes couldn’t I collect Social Security? Couldn’t I get any kind of residue for the taxes I paid based on my next year’s income, taxes-wise?” she postulated.
THE LARGE MAJORITY OF CONSUMERS BELIEVE TIPPING CULTURE IS ‘OUT OF CONTROL’
Prior to his current role at Cingari Family Markets, Alexander graduated from the esteemed Johnson & Wales University culinary school to work and survive in the bellies of Michelin-starred beasts. But he says the reason upscale restaurants, like those now depicted in modern media hits like “The Bear” or “Burnt,” don’t offer livable wages is because “it all comes down to profits.”
Kerwin transitioned from a full-time to part-time server earlier this year to pursue a new career opportunity. Now, working only one or two nights a week at an upscale steakhouse, he worries that full-service restaurants won’t be able to offer an hourly rate that matches what servers currently earn.
FOX Business host Larry Kudlow reacts to Vice President Kamala Harris adopting one of former President Trump’s ideas on “Kudlow.”
“I know that by putting in the extra effort and adding those little personal touches or taking extra care and doing those little special things for people, I will increase my chances of earning more,” she explained.
The best solution, according to the executive chef, who appeared on Food Network, is to follow the example of the fast food industry and pay every restaurant worker a living wage. He also pointed out misconceptions about grouped suggestions.
“Paying taxes is kind of what we do as American citizens.”
He told Fox News Digital that he often uses this analogy: “there’s always that person on the group project who got an ‘A,’ who never showed up to meetings, never turned in an assignment and leaves with an ‘A’.”
“There are buses, there are servers, there are other employees who need a tip,” Alexander added. “So your tip doesn’t go 100% to the person who actually gives you table service… And a lot of places are weatherproof or season dependent… the cards can be stacked against you. There are a lot of variables. It’s very variable. And I think people don’t realize that.”
Kerwin reiterated that there is “room for improvement” in the restaurant industry’s payment structure, but for now he believes the system is working as is.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Jon Taffer, host and executive producer of “Bar Rescue,” breaks down the impact of inflation and tax-free tips on the restaurant and food service industry.
“Tipping is optional. So I felt stiffed at times. We’ve all been there,” Kerwin added. “But I think just having a paycheck that you knew you were going to get every time you came in, [it] it won’t incentivize servers to actually engage in the way they do.”
“This is people’s livelihood, and not everyone has the privilege of being able to go to college or do internships that open other doors… I think, forget it.”