New Doctrine At Selected Restaurants

by Hal Mooz 5. May 2014 09:35

Gratuities 'not expected' as some US restaurants forgo tips

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 $7.25 an hour, wait staff can legally be paid as little as $2.13 in some places. In New York, one of the most expensive US cities, salaries for waiters start at $5.00 per hour.

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.

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

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

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

http://news.msn.com/us/gratuities-not-expected-as-some-us-restaurants-forgo-tips

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About Hal Mooz

Engineer, Project Manager, Entrepreneur, Author, Trainer, Lecturer, Thought Leader, Consultant

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