06/27/2014 05:04 pm ET Updated Dec 06, 2017

Restaurant That Banned Tips Gives All Gratuity To Charity And Pays Workers Competitive Wages

Noel Hendrickson via Getty Images

Updated July 14, 2014: 11:30 a.m. EST

A new restaurant in San Antonio has a policy that's challenging the status quo and raising some eyebrows in the process. Its servers don't take home their tips -- not a single penny of them.

Oaks Crossing opened its doors last Friday and, with its unique methods of paying employees, became the first restaurant in San Antonio to embrace a no-tips policy while benefiting the greater good, KENS 5 News reported.

Although the restaurant's manager, Nick George, is "flattered and humbled" that customers are moved to leave a few dollars on their tables before leaving, he's currently discouraging them from doing so. But when gratuity is given (the restaurant had collected about $600 when KENS 5 News reported the story on Wednesday) the money is donated to a good cause. The first to benefit from Oaks Crossing's satisfied patrons is the local Parman Branch Library.

A restaurant spokesperson told the news source that instead of relying on tips, servers are compensated with a competitive wage.

Restaurant chain Waffle House recently drew similar attention for a company-wide tipping policy, but for all the wrong reasons. After a generous diner at one of the restaurant's locations in North Carolina gave a $1,000 tip to his server on Mother's Day, Waffle House management gave the tip back to the anonymous do-gooder. According to company policy, large tips charged on a credit card are automatically returned to the customer.

The story had a happy ending, however, when the patron caught wind of the story and returned to the restaurant to write a check for $1,000.

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