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USA embraces 'tipless' restaurants

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Don't tip me if old

Source: http://www.smh.com.au/travel/travel-news/usa-embraces-tipless-restaurants-20140506-37tib.html

USA embraces 'tipless' restaurants

Only in America would a waitress say "have a fantastic day" and mean it.

In the United States, customers are expected to add an extra 10 to 20 percent to their tab at the end of a meal - but increasingly restaurants are forgoing these tips.

Leaving a gratuity is de rigueur when dining out because pay for restaurant servers is so low.

While the US federal minimum wage is $US7.25 ($A7.80) an hour, wait staff can legally be paid as little as $US2.13 ($A2.29) in some places. In New York, one of the most expensive US cities, salaries for waiters start at $5.00 ($A5.38) per hour.

For wait staff, tips help bolster pay in line with other restaurant workers who don't receive gratuities.

However there is a new trend. Riki Restaurant in New York is one of a growing number of establishments eliminating tips by taking the unusual step of paying their staff higher wages.

"Riki Restaurant is now a non-tipping establishment," read notices at the popular Japanese eatery. "Tipping is not required nor expected."

The no-tip policy is especially being adopted by upscale restaurants, said Michael Lynn, a professor at Cornell University's School of Hotel Administration.

Folding tips into the meal tab protects waiters from being shortchanged by the occasional tight-fisted diner, said Lynn, who specialises in issues related to marketing and consumer behavior.

It's seen as an issue of equity, as restaurants attempt "to equalize the pay between the front and the back of the house," he said.

A downside is the sticker shock that patrons sometimes suffer when browsing through menus that have tips factored into the prices.

"American customers tend to not think of the tip as an expense, and they don't really factor that into their assessment of how expensive a restaurant is," Lynn said.

"It makes a restaurant look more expensive than a restaurant that has 15 percent lower prices, but expects tips."

Gabriel Frem, owner of the upscale Brand 158 restaurant in the Los Angeles suburb of Glendale, also sees his establishment's no-tipping policy as a way to protect staff from the whims of diners.

"We interview and hire our employees, not the guest, and we expect to pay them, and be responsible for their actions," he said.

"If they do great, we keep them, and if they don't, we let them go.

"We don't want their pay to be at the mercy of a guest's random calculation, based on unpredictable factors."

Tip vary wildly

As it turns out, tipping can vary wildly from guest to guest - and not always because of the quality of the table service.

Some patrons withhold tips because they feel the server was not sufficiently cheerful ("I don't like her smile").

Others do so because they didn't particularly care for the food - even if a meal's preparation is not under the control of the wait staff.

It's also a problem, Frem said, if workers don't know how much income they can count on from week to week.

"We want to ensure that they can pay their bills," he said.

Other managers say greater pay security in tip-less restaurant reduces turnover and improves morale.

The tipless restaurant is still a long way from becoming the norm, but some New Yorkers are beginning to warm to the idea.

"At first, I really thought that if a waiter was rude, I would want my discontent to be reflected in their tip," said Noel Warren, a young New Yorker who dines out at least twice a week.

"But then I thought, why would a waiter be disrespectful in the first place? Probably because he or she has lost faith that customers are going to tip well - so why put in any effort?"

Warren mused that it might in fact be fairer to take the decision about tips out of the fickle hands of restaurant patrons - which might even improve the table service that patrons.

"If they were properly compensated for their work, they might treat their customers better," Warren said.
 

terrisus

Member
Spoilers:
I bet the restaurant has higher menu prices to compensate.


The no-tip policy is especially being adopted by upscale restaurants, said Michael Lynn, a professor at Cornell University's School of Hotel Administration.

Folding tips into the meal tab protects waiters from being shortchanged by the occasional tight-fisted diner, said Lynn, who specialises in issues related to marketing and consumer behavior.

It's seen as an issue of equity, as restaurants attempt "to equalize the pay between the front and the back of the house," he said.

A downside is the sticker shock that patrons sometimes suffer when browsing through menus that have tips factored into the prices.

"American customers tend to not think of the tip as an expense, and they don't really factor that into their assessment of how expensive a restaurant is," Lynn said.

"It makes a restaurant look more expensive than a restaurant that has 15 percent lower prices, but expects tips."

Yeah, pretty much.
 

terrisus

Member
Also:

"But then I thought, why would a waiter be disrespectful in the first place? Probably because he or she has lost faith that customers are going to tip well - so why put in any effort?"

Yeah... That must be it...
All of those super-cheerful kids out waitering and waitressing, who are just full of joy they want to share, but are being beaten down by the man and the establishment


I'm not saying I agree with the wage setup - either the amount or the tipping process. But, some people are just jerks, and other people will just be jerks unless they have an immediately apparent reason not to be jerks
 

SmokeMaxX

Member
Spoilers:
I bet the restaurant has higher menu prices to compensate.

Yeah, pretty much.
Well, of course. Customer actually knows what they'll pay now and now waiters won't have to guess at how much they'll make.
Also:

Yeah... That must be it...
All of those super-cheerful kids out waitering and waitressing, who are just full of joy they want to share, but are being beaten down by the man and the establishment

I'm not saying I agree with the wage setup - either the amount or the tipping process. But, some people are just jerks, and other people will just be jerks unless they have an immediately apparent reason not to be jerks
I know a lot of waiters and they have a lot of bitterness which is directly due to how much they get tipped. Of course not everyone is like that, but now the incentive for being a good waiter is that you won't get fired rather than someone gives you a measly 10% tip.
 

Spongebob

Banned
If I was the kind of person that eats at restaurants, I wouldn't tip even if it was a "tipping restaurant".

Tipless restaurants are more to my liking.
 

Loofy

Member
Its funny how tip % is treated like rising gas prices and inflation. 10% in the 90s, 15% 2000's, 20% in 2010. There was an article(and I think a gaf thread) on how 25% is becoming the norm.
 

terrisus

Member
Well, of course. Customer actually knows what they'll pay now and now waiters won't have to guess at how much they'll make.

But wouldn't the customer already know what they'll pay if they just factored in an extra 15% on top of any of the prices?
That's basically what a restaurant would be doing by doing away with tips but increasing prices.

Fair point on predictability for the waiters though.

I know a lot of waiters and they have a lot of bitterness which is directly due to how much they get tipped. Of course not everyone is like that, but now the incentive for being a good waiter is that you won't get fired rather than someone gives you a measly 10% tip.

Oh, sure, there definitely are people like that.

But, it's just overly idealistic for someone to think that any waiter or waitress who is unpleasant is doing so because they're discouraged by the tipping system, and would be pleasant if they didn't have to deal with it, and that everyone who was pleasant would continue to be pleasant without a tipping system.
 
If I was the kind of person that eats at restaurants, I wouldn't tip even if it was a "tipping restaurant".

Tipless restaurants are more to my liking.

violin-steve-buscemi.gif
 

pestul

Member
I somehow read the thread title as 'USA embraces 'nipless' restaurants'.. shocked for a moment there..

I had a long day at work.
 

Sub_Level

wants to fuck an Asian grill.
Need to move to NYC.

The Tipping Wars will consume this nation in flames, and I want to be on the side of righteousness.
 

Ahasverus

Member
Good. The thing I'm more afraid of going to the states is getting myself into trouble for things like this. If GAF didn't exist I wouldn't have idea tipping was a thing.

25% Lol no.
 

Sub_Level

wants to fuck an Asian grill.
Some waiters complain if 20 percent is not the minimum. Dead serious.

Some waiters are entitled to a gross degree.

The job can be extremely stressful, but so can the one for the guy working prep area in the kitchen or dish at $8/hour.
 

Wthermans

Banned
We have a 19% service charge for valet, transportation, and all other products/services. Tipping is not anticipated nor expected. It's a great system and leads to a happier staff.
 

RoadHazard

Gold Member
Sounds great, that's how it should be. Pay restaurant workers what their work is worth right off the bat instead of shaming customers into making up the difference.
 

Zoc

Member
I think what's happpening here is that restaurant owners have noticed that tip expectations are trending sharply upward, especially in expensive restaurants, foresee getting a shrinking share of the money spent by customers, and are trying to rein things in. Profit margins are so slim at most restaurants that the owner may only be making ten or twenty dollars at a busy table, so I can see why it would be galling that the waiter is making forty or fifty.

In these threads, waiters are always the first to defend tipping, and I can see why.
 

reckless

Member
It simply shouldn't be legal and the proponents lobbying for a slave class (by not legally mandating a reasonable minimum wage) should be lined up and shot.

It isn't legal for them to make below minimum wage. If tips+ that pay don't make up at least the federal (state) minimum wage employers need to make up the difference.
 

braves01

Banned
Watch prices get raised, then people start tipping again but only for truly excellent service at first. Then the standards begin to slip, and once again we are expected to tip, only now with higher base prices.
 

tbhysgb

Member
I have an idea. Pay the wait staff a good wage and if we want, tip on top of that. I tip because of the system in place when we go out. But I still thinks its horseshit I have to psy for their employees. Such is life.
 

Sub_Level

wants to fuck an Asian grill.
I wouldn't do it to be an ass. I would do it as a protest against the current system.

That's totally within your rights but I wouldn't go back to that restaurant if I were you. Especially not on a slow shift where patrons are more easily picked out among a crowd.
 
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