Looking at media headlines, you'd be forgiven for thinking that tip-less restaurant models are sweeping the nation. With minimum wage increases at the forefront of labor talks, and the spotlight being put on back-of-house staff, the tipless movement is indeed gaining some steam as people look to equalize pay. However, some restaurants, such as Joe's Crab Shack, have reverted back to a tipping model at many locations due to customer complaints, economic issues as well as increasing employee turnover. Still, as reported by
Grub Street, a new survey of 503 US Restaurants by the American Express Restaurant Trade Survey found that there are still quite a large percentage of restaurants that plan on making the switch to a no-tipping, "service-included" model.
Per
Grub Street, the survey found that 18% of restaurants had already implimented the new system, and 29% intend to go tipless. On the other side, 27% of respondents said they will not be changing to a tipless model, and 17% may do so only if more restaurants jump on the bandwagon. With wage increases being proposed and implemented across the nation, going tipless makes perfect sense, as it provides a context in which to raise menu prices and reevaluate expenses.
There are big name restaurants on both sides of the fence, with Danny Meyer's group being one of the most notable (though not all of their restaurants are "hospitality included"). Joe's Crab shack was the first chain to adopt the policy, but has reversed course in some locations. From LA, to New York and back to San Francisco, the jury is still out on
when the industry at large will make the switch, though the concensus seems to be that eventually, everyone will go tipless.
Has your restaurant made the switch? If not, what is keeping you on a tipping model? Let us know what you think via Facebook, Google+ and Twitter.
Source:
Grub Street
Image Credit: Nan Palmero on
Flickr
Tablebases.com
