Oakland’s Burdell, named the best U.S. Restaurant by Food & Wine magazine in 2025, is facing a wave of online backlash after a customer shared the restaurant’s receipt policy on social media. The policy includes a 20% service charge in lieu of tipping, a practice Chef Geoff Davis implemented to stabilize wages and provide healthcare benefits to his staff.
A History Behind the Policy
Davis explained that the decision to forgo traditional tipping is rooted in the practice’s problematic history. According to Davis, tipping in the United States originated as a way for employers to avoid paying formerly enslaved Black workers a fair wage. Burdell’s receipt explicitly states, “Tipping in the US has an ugly past, allowing the continuation of underpaid labor.”
The restaurant’s policy, which is prominently displayed on the menu, has sparked outrage online, with Burdell receiving numerous negative reviews and threatening messages. Despite the backlash, Davis maintains that the service charge is not unusual and is a common practice in upscale restaurants.
Wage Stability and Employee Benefits
Davis stated that the service charge allows him to pay employees roughly double the local minimum wage, which was $17.34 in Oakland as of January 1. Full-time employees are too eligible for healthcare coverage, with the restaurant covering approximately 75% of the cost.
The initial surge of negative attention stemmed from a now-deleted Reddit post, though the criticism has persisted for weeks, even after Davis addressed the issue on Instagram on February 4. He noted that he carefully considered the language used to explain the policy, aiming to acknowledge the history of tipping without overwhelming customers with information.
Legal and Local Context
California law requires restaurants to pay employees the state’s minimum wage regardless of tips. However, federal law still permits a subminimum wage for tipped workers—$2.13 per hour, with employers able to use customer tips to make up the difference. Oakland and other cities have ordinances requiring service charge funds to be distributed to hospitality employees and requiring documentation for potential city investigations.
Frequently Asked Questions
What prompted the negative reaction to Burdell?
A now-deleted Reddit post featuring the restaurant’s 20% service charge policy sparked a surge of negative reviews and messages directed at Burdell.
What is the purpose of the 20% service charge?
The service charge is used to pay hourly staff a consistent wage and to help cover the cost of healthcare benefits for full-time employees.
What is the historical context behind Burdell’s decision to move away from tipping?
Chef Geoff Davis explained that tipping in the United States has roots in a system that allowed employers to avoid paying formerly enslaved Black workers a fair wage.
As the debate continues, will diners embrace alternative compensation models for restaurant staff, or will traditional tipping remain the norm?
