Why Some Restaurants Have Declared War on Tipping

10/25/15
 
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from TIME Magazine,
10/23/15:

Danny Meyer’s Union Square Hospitality Group will cease the practice by the end of 2016.

The strip steak at New York City’s Union Square Café costs $35. But if you order it, you’re almost certain to pay closer to $40–and possibly more if you found the server appealing or she introduced herself by name or suggested a great wine. That’s because for nearly 150 years, eating out in America has meant leaving a not-insubstantial tip on the check. (The national average is 15% to 20%.)

But what if it didn’t? A small but prominent group of restaurants across the U.S. are testing that premise, eliminating tipping and making up for the lost cash by raising prices or adopting a service-included charge. They account for a tiny fraction of the nation’s more than 230,000 full-service restaurants, but their ranks are growing. And the latest addition may be the most influential yet.

Why fight a custom in place since the late 19th century, when Gilded Age aristocrats adopted the European practice to flaunt their status? In short: money and control.

The amount we tip is ultimately tied to how much a meal costs. And since prices have been rising, tips have gone up along with them–good news for the waiters, hosts and other staff members who receive gratuities (many of whom are wary of losing that income). But a confusing maze of laws bars most of the people who actually cook your food from sharing in those tips, which has created a vast pay gap. At a high-end restaurant, a waiter can make six figures a year. A line cook at the same place is unlikely to earn more than $35,000.

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