Danny Meyer, New York’s most prominent restaurateurs, announced this week he plans to remove tipping at his restaurants.
The CEO of Union Square Hospitality Group and Shake Shack founder, who owns 13 restaurants including The Modern,
According to Danny Meyer the new policy would allow all employees to be compensated equally, including cooks, reservationists and dishwashers.
The backstage team he said “aren’t able to share in our guests’ generosity, even though their contributions are just as vital to the outcome of your experience at one of our restaurants.”
Because of tips about 20 percent for the waiters sometimes they end up earning much more than highly skilled cooks.
Mr Meyer plans to start the policy at four of his restaurants in November. Instead the group will give workers a raise wages and the dining experience will get more expensive. Meyer will hike menu prices by 21-25 percent, and customers can expect to pay almost 10 percent more than they currently do for a full meal plus the tip, Forbes said.
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Meyer’s no-tipping policy is quite unique although some restaurants with a no-tipping policy, such Dirt Candy, a 20 percent administrative fee is added to every bill, according to USA Today.
Meyer didn’t say how prices at his restaurants would be impacted by the new policy, but suggest to a price change. USA Today quoted Meyer as saying, “the total cost you pay to dine with us won’t differ much from what you pay now.”
Meyer’s restaurants and other businesses include: Union Square Cafe, Gramercy Tavern, Blue Smoke and Jazz Standard, Shake Shack, The Modern, Cafe 2 and Terrace 5 at MoMA, Maialino, Untitled at the Whitney Museum, Union Square Events, and Hospitality Quotient. Union Square Events, USHG’s catering division, operates several concessions at major sports facilities (Shake Shack, Blue Smoke, El Verano Taqueria, and Box Frites) including the Mets Citi Field, Saratoga Race Course, and Nationals Park, Washington D. C..
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