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Some Charlotte restaurants are seeing positive impacts behind extra gratuity fees on checks

This comes after years of feeling the pinch of the industry’s labor shortage and the impacts of the pandemic.

CHARLOTTE, N.C. — Restaurants have struggled to overcome the impacts of the COVID-19 pandemic for years, with a number of Charlotte businesses closing their doors. 

Business owners say there are several factors driving this, from employees having higher demands to customers simply spending less money due to rising inflation. 

"There is less of a drive to work and more of 'What can you do for me?'" Brandon Foster, the general manager of Leroy Fox South End, said. 

Foster said he's starting to see some progress and Leroy Fox is now fully staffed. He credits a changing culture that's better for workers as a primary factor in raising employee morale. 

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“I've kind of changed the culture here from what it was from when I took over," Foster said. "There was a lack of trust."

WCNC Charlotte spoke with a dozen restaurants from across the Charlotte area and most owners and general managers agreed that changes in the workplace are making a difference. Others pointed to a new trend in the service industry that's making employees happy. It's known as a "kitchen appreciation fee," and it's tacked onto a customer's bill with the proceeds going to the whole staff, not just servers who are waiting tables. 

RELATED: A new 'kitchen fee' is upsetting restaurant customers

Several restaurants said it's helped retain employees without driving up prices for customers. 

"People are questioning why they should come to work if they're not getting paid what they're worth," one person said. "I definitely feel like adding incentives to the bill could bring more staff into restaurants."

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Sophia’s Lounge is just one restaurant from Ivey's Hotel that's using the added gratuity incentive, saying the added option to tip the back of the house raised their pay from $15 an hour to $25 an hour. 

It's a small change making a big difference for employees. 

"I want everyone to get paid what they should be getting paid and sometimes that comes with adjustments," another person said. 

As restaurants continue to pivot toward growth, they're also encouraging others who are struggling to stay afloat during this uncertain time. 

"Don't give up," Foster said. 

Contact Tradesha Woodard at twoodard1@wcnc.com and follow her on Facebook, X and Instagram.

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