Is This The End of Tipping For Restaurants?

Is This The End of Tipping For Restaurants

Whether we head out to eat or have the food we ordered delivered to us; it is common etiquette to tip these people even if it is just a couple of bucks — it would otherwise be rude if you don’t. What if the next time you eat out at a restaurant you didn’t have to tip? It’s becoming more common when people go out to eat.

Not tipping anymore at restaurants could be the new way to do things in the future, as it is right now in Europe. The no tipping policy will also mean prices will rise. Jay Holland, government affairs coordinator at the New York State Restaurant Association, stated that there is a growing movement to change how tipped workers get paid. Since January of 2015, the Trou Normand in California will no longer require their customers to leave a tip as the increase in menu prices will take care of it.

Many food industries believe it’s about time for restaurants to follow suit with what every industry already does and charge money for a service rather than depend on consumers to compensate their employees. One owner of a popular restaurant in Kentucky mentioned that the food industry is a competitive business, and he believes the no tipping rule will be appreciated by customers because they don’t have to worry about calculating a tip after a meal.

As popular as the change is becoming, it will likely still take a long time for people to view it as the new normal. There is a lot of controversy surrounding the no tipping policy and whether or not employees will get shortchanged. The US laws state that all employers must pay their tipped employees a minimum of $2.13 per hour as long as their full pay, including tips, is equal to the minimum wage.

There are some people who are concerned that making tips obsolete isn’t that great. One issue are employees who make more than minimum wage may get less thsn they did before. Another problem would be for the customers. There are some who think that there will be lower quality of service if servers know that they are not working for tips.

Hotel and Restaurant Management program director, Martin O’ Neill, states that tipping is something people in America do because it’s repeatedly drilled into their heads by our society to do so. It’s because of that, getting rid of tipping may be to do. Many individuals are accustomed to it and may still choose to tip their server. One restaurant explicitly placed a sign for all customers to see that there was no need to tip their workers. However, there were customers that couldn’t bear to leave the table without tipping, even after getting told their workers are compensated well. It could just be something that will take time for those uncomfortable with the idea.

Although the change is a good one, with there being a minimum wage increase, it will also likely mean that costs will rise to compensate it. Menus will likely rise between 20-31%. Amanda Cohen, an owner of Dirt Candy in New York, likes the no tipping policy and minimum wage increase. Cohen stated that there is now a 20% administrative fee added to service payment so she can provide all her workers more consistent pay. There were nights when her front-of-the-house workers were leaving with hundreds in their pockets, while the cooks and some servers were making less. Some of them weren’t even going home with more than ten bucks an hour. Cohen believes businesses shouldn’t allow customers to only pay for her employees.

Cohen said that both her staff and customers were quite supportive. She mentioned that everyone is happy because back-of-the-house workers are making more and front-of-the-house workers can breathe knowing they get guaranteed pay. Thad Vogler, the owner of Bar Agricole in California, stated they also increased their services by 20% to pay all their workers in the front and back end, equally and fairly. Volger is also aware of the minimum wage increase (set to go up to $15 by 2018), and he mentioned there was no better time than now to move forward with the change. Even though most of his employees are already making that amount, he didn’t want to leave the servers out on a piece of the pie that deserve it. He admits that there are a few of his workers that are taking home less money than they were last year, but there were a lot of things that improved at the restaurant.

Whether you are for the change or not, it is something that is happening, and overall, it does not appear to be a bad thing.

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