The Failure of the Great Tip-Free Restaurant Experiment
Over the past three years, a number of restaurants across the geographic and economic spectrum of America have experimented with eliminating tipping. The practice is outdated, creates a difficult-to-justify wage imbalance between servers and cooks, and can result in mistreatment of staff (racism, sexual harassment) because of the fucked-up power dynamic it creates.
But as Grub Street’s Nikita Richardson writes, the no-tip test has largely failed, with many of those places going back to the old ways. This happened for three main reasons:
1. No tips meant higher prices printed on the menu, and customers stayed away from what they perceived as more expensive meals. That $12 burger became a $14.50 burger and all of a sudden, people knew what they were actually paying for their food. What’s interesting is that in another situation (say, having to pay to check a bag on a flight), people would be upset at not knowing the price up front and having a “hidden charge” added to their bill when they’re drunk and happy at the end of a meal.
2. Servers can make more at tipping restaurants. Places that went tip-free lost a bunch of their staff to places that still had tipping.
Meanwhile, by raising menu prices and thus revenues, the extra money would go toward higher wages for kitchen staff, who could start making $12 to $15 an hour at a time when the state minimum wage was $8.75.
But, it turned out, many front-of-house staffers were more concerned with making money than with maintaining the moral high ground. This February, Meyer admitted that he had lost 30 to 40 percent of his “legacy” staffers since 2015. (One Meyer employee told Grub last year that her wages dropped from $60,000 per year to $50,000 under the new policy.) While he insisted that the employees that replaced them “understand ‘Hospitality Included’ and are thrilled about it,” added employee attrition in an industry where turnover is already 1.5 times that of the private sector average has to hurt.
My regular NYC spot was one of the restaurants that experimented with eliminating tipping, and I can report that the staff was indeed quite skeptical about it and they switched back to the old method very soon. (I believe they kept the raises for the chefs though somehow.)
3. Tips make diners feel powerful. With tipping, you become the boss of your server or bartender and are responsible for a large chunk of their take-home pay.
Generally speaking, Americans hated the practice of tipping when it was first introduced in the late 19th century, perceiving it as a form of bribery for service workers who should simply do their jobs. But as we’ve adjusted to it, tipping has become undeniably intertwined with a sense of power.
Short of walking into the kitchen and telling off the chef, tipping is the easiest way to express satisfaction or dissatisfaction with a dining experience.
As a customer, I loved not tipping. I don’t feel the need to have power over the staff in a restaurant, I want cooks & chefs to get paid as well as servers, and I’ve acclimated to factoring the tip into my dining expenses. But it seems that Americans in the aggregate do care about those things, and so here we are.
And if we’re going to have tipping in restaurants, we should all know how it works.
If you can’t afford to tip 20 percent of the total amount that you spend at a restaurant, you can’t afford to eat at that restaurant.
And if your meal is bad?
You still tip. If something truly egregious happened, you ask to speak privately with a manager. If you do not want to speak privately with a manager, and would rather correct this perceived slight by tipping less or not tipping at all, you do not actually care about your perceived slight; you’re just using it as an excuse to be a dick.
Stay Connected