The practice of tipping in restaurants has been under fire for a few years now, with arguments flying fiercely from both sides. We reported recently that
Danny Meyer announced all of his Union Square Hospitality Group restaurants would go tip-less, in favor of slightly higher menu prices and higher base pay rates for employees. The
New York Times is now reporting that Joe's Crab Shack, a Houston-based seafood chain with more than 130 locations across the US, will begin testing a no-tipping system at 18 locations.
As with many restaurants making the switch, the difference from the lack of tips at Joe's will be passed onto customers in the form of increased menu prices. Brand representatives indicated that the increase would be "
typically less than the average 20 percent service tip." Chief Executive Ray Blanchette echoed the sentiments of
many restauranteurs and industry insiders, calling the tipping system
"antiquated". The news may or may not be good from the perspective of servers, who may have made quite good money in tips on busy nights. However, it will make base pay more consistent, so on a slow night with no tips, servers can take home just as much. It's also a boon for back-of-house staff and managers that may not normally receive tips.
Tip-less systems with higher base pay for employees are gaining traction right alongside pushes to increase minimum wages across the country, with many cities and states enacting new regulations over the last year, or with possible new regulations on the books. Eliminating tipping and rolling those costs into menu prices could be a way to eliminate a bit of the strain of higher wages for employees.
Has your restaurant considered moving to a tip-less model? If you have, how is it working? For those who haven't, what is holding you back from making the switch? Let us know what you think via Facebook, Twitter and Google+.
Source:
New York Times
Image Credit:
Flickr
http://www.nytimes.com/2015/11/12/dining/joes-crab-shack-to-test-no-tipping-policy.html?_r=2
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