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Danny Meyer Cuts Tipping

Recently New York restaurateur Danny Meyer eliminated tipping at all of his restaurants-about 15. In doing this he is going to increase menu prices and increase wages for all employees including cooks and other back of house staff. His reasoning for this is that hospitality is a team sport and many of the staff (cooks, hosts etc.) don’t get the same generosity even though their contributions are just as important to the success of the restaurant. There has been a lot of back and forth discussion in the wake of this decision.

Supporters of the decision believe that eliminating tipping and raising wages would reduce the pay disparity between the wait staff and the others that work in restaurants. It would also provide more income stability for many waiters. Many supporters are also tired of being forced to “grade” the wait staff. Many also believe that this “grading” system has become somewhat sexist, racist, and basically just unfair. By eliminating tipping they will no longer be in charge what their waiters are earning for the night.

Those who are against eliminating tipping believe this is a uniquely American custom and an important part of our culture. Taking away tipping would take away our ability to reward servers that go above and beyond to enhance our dining experience. Tipping enforces good service and without it many believe service will decline. Another point that is made in favor of tipping is that although servers only make 2 dollars an hour they make well above minimum wage with tips.

In my opinion this should be decided by each restaurant individually by what best fits its own business model. It definitely shouldn’t be mandated and decided by government. This relates to class because it is controversial whether this issue should be regulated by government or decided by each individual restaurant. There are many stakeholders including customers, employees, restaurant owners etc.

 

http://www.nytimes.com/2015/10/15/dining/danny-meyer-restaurants-no-tips.html

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