The Union Square Hospitality Group is eliminating tips in their establishments. They plan to have all of their New York full service restaurants on this new policy. This policy is intended to improve retention of employees and improve fairness in wages. The tips are made up in employees’ wages by taking the tip line off of receipts and raising the price of menu items instead. This model has been working well so far and proponents of this policy believe that it is beneficial to employees because they will always be paid. Staff that rely on tips are always taking the chance that guests will choose not to tip.
- Tipping can be a deterrent in customer service and companies can succeed without it.
- Raising menu prices may seem ineffective until the customer realizes saving in tipping.
- No tipping is mostly done in fine dining restaurants but can also be implemented in others.
“Meyer and his team eliminated the tip line on checks and raised menu prices in a model the company dubbed “Hospitality Included.””