EAST LANSING, Mich. — Employees at Altu’s Ethiopian Cuisine in East Lansing have accused the restaurant’s new owner, Gutu Lencha, of stealing online tips intended for staff members. The allegations were brought forward by former server Nathan Herendeen, who claims that instead of tips being distributed to the restaurant’s servers, they were directed to Lencha’s personal bank account.
Herendeen explained that customers who order online at Altu’s Ethiopian Cuisine have the option to add a tip to their bill, which can be designated for in-house staff, delivery drivers, or both. In most cases, these tips are intended for the employees who provided the service, particularly since servers in Michigan earn a lower minimum wage that is meant to be supplemented by tips.
However, according to Herendeen, since Lencha took over ownership of the restaurant, the online tips have not been reaching the intended recipients. “We used to work very well together; like he had called me his right hand at one point. It’s only until this stealing of tips that we’ve had a lot of confrontation,” said Herendeen.
Herendeen shared that customers continued to add tips to their orders through the restaurant’s online system starting on December 31, but those tips never ended up in the hands of the servers. “It feels like we caught him and confronted him that he was stealing money,” Herendeen added. The former server claims there are still missing tips from the period between December 31 and January 8.
The accusations have prompted Herendeen to file a formal complaint with the Michigan Department of Labor and Economic Opportunity. The department has not yet commented on the ongoing investigation, but Herendeen’s allegations are a serious matter, particularly as they involve potential violations of state wage laws.
If the claims are substantiated, this could have significant financial and legal ramifications for Lencha and the restaurant. Servers, who often depend on tips to supplement their wages, could face economic hardship due to the missing funds, and the situation could also damage the restaurant’s reputation.
Altu’s Ethiopian Cuisine has not yet issued a public statement regarding the allegations. As the situation unfolds, the Michigan Department of Labor and Economic Opportunity will likely continue to investigate the complaint, potentially leading to further legal action.
