One day, while Kachka co-owner Israel Morales was working on payroll, he decided to do some additional math. He took the total tips the Russian restaurant had made that month and divided it by restaurant’s total number of employees. What he discovered blew him away: If the restaurant split its tips evenly, everyone at the restaurant could make at least $50,000 per year. “We started running the numbers, and it’s actually true, give or take,” says Bonnie Morales, the restaurant’s executive chef and co-owner. “If you take that 20 percent income that goes into the business, but distribute it more equitably, everyone can make at least $25 per hour.”
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