A popular Bay Area bakery has banned tipping staff and opted to raise prices to fund a higher wage instead.
Backhaus removed the option for customers to tip staff at its two branches last month. Instead, it raised prices by an average of 11 percent - about 25 cents on a typical pastry.
The price rise goes towards funding a $23.50-an-hour wage for entry-level staff and benefits such as paid parental leave, comprehensive healthcare and a 401(k), the .
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