Key facts
- Some US restaurants are banning tips and implementing higher, fixed wages for all employees.
- This model aims to create a more equitable pay structure, particularly benefiting kitchen staff.
- Increased menu prices are used to fund these higher wages, leading to a 'what you see is what you pay' approach.
- Customer reaction to higher prices can be negative, with some restaurants reverting to tipping.
- Challenges include customer perception of cost and attracting service staff accustomed to earning tips.
A growing number of US restaurants are experimenting with eliminating traditional tipping, opting instead for higher, fixed wages for all staff. This approach aims to create a more equitable compensation system, particularly for kitchen workers who traditionally earn less than front-of-house staff reliant on tips.
Restaurants like La Cigale in San Francisco and Nightshade Noodle Bar in Massachusetts have increased menu prices to fund these higher salaries. La Cigale advertises a 'what you see is what you pay' policy, while Nightshade Noodle Bar's owner, Rachel Miller, stated the move was to ensure fairness and address potential biases in tipping based on gender or race.
However, the transition is not without its challenges. William Michael Lynn, a professor at Cornell University, notes that customers often struggle to reconcile higher menu prices with the absence of tipping, leading to a perception of increased cost and potentially lower demand. Talulla, a restaurant in Cambridge, Massachusetts, reverted to a tipping model after a 23% price increase proved unsustainable, citing increased operating costs as tips are not counted as revenue.
Despite these hurdles, some establishments have found success. Dirt Candy in New York banned tipping in 2015, and its owner, Amanda Cohen, reports customers are often pleasantly surprised to learn they do not need to tip. Cassidy Van der Kamp, a filmmaker, experienced stability in her earnings after her restaurant moved to a tip-free model. Miller at Nightshade Noodle Bar also highlights improved staff retention as a key benefit.