Published October 15, 2015

Danny Meyer Gets Rid of Tips at His Restaurants

Starting soon, diners at Union Square Cafe, Gramercy Tavern, or any other of Danny Meyer’s restaurants will notice a change on their checks: there will no longer be a line to leave a tip. Meyer hopes transitioning to a tip-free business model will be better for restaurant owners, servers, cooks, and patrons alike. The restaurateur has been against tipping for decades. He sent out a memo over 20 years ago that alleges that America’s tipping system forces servers to please hundreds of “bosses,” obligates customers to try to figure out how to fairly remunerate service employees, and deprives restaurant owners of the opportunity to reward performance and loyalty with higher salaries. Meyer will compensate for the lack of tips by increasing menu prices and hourly wages for servers.

Meyer is not the first person to experiment with getting rid of tips. Thomas Keller has tried something similar at Per Se, and some restaurants include an obligatory service charge in the bill. However, the tipless model is still a relatively new addition to the American dining scene, and it remains to be seen whether servers and customers will accept this new way of doing business. While removing tips from the equation will make servers less vulnerable to stingy customers, it will also prevent them from receiving the unexpectedly generous gratuities that make restaurant work appealing.

Read the full article here: Danny Meyer is Eliminating All Tipping at His Restaurants

Link: http://ny.eater.com/2015/10/14/9517747/danny-meyer-no-tipping-restaurants

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