Tuesday, November 17, 2015

No Tipping Thank You



Blink:
A hot topic in the foodservice industry right now is the potential of eliminating tips.  Legendary New York restaurateur Danny Meyer was the first to announce a no tipping policy.  Last week national restaurant chain Joe’s Crab Shack indicated they were heading in this direction.  So what’s next?   

Read On:
What is the rationale behind the no-service gratuity model?  Restaurateurs will pay their servers, hosts and bartenders higher, fixed hourly wages which will improve the team performance of their workers and reduce turnover.  Oh yes, to cover this business model, menu prices will obviously be increased potentially 15 to 20%.  Will this policy go mainstream?  More importantly, will diners be comfortable with this move?

So what’s next?  Maybe Foodsy, a new restaurant in Amsterdam has the ultimate solution to a no tipping policy.  They have eliminated their staff altogether.  Guests are provided menu recipe cards.  Then guests use either raw/fresh or prepared ingredients to cook and serve themselves.  They are even provided instructions how to tap their own beer or brew coffee.  At the end of their experience, patrons pay via an iPad app.  Due to the elimination of staff, most of Foodsy’s meals are cheaper than other restaurants. 

How do you vote?  To tip or not to tip!



5 comments:

  1. Tip: to insure prompt service seems to have gone the way of the dinosaur. Everyone could stay home and cocoon or communicate the old-fashioned way: verbally notvtrxr to text.

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  2. Tip: to insure prompt service seems to have gone the way of the dinosaur. Everyone could stay home and cocoon or communicate the old-fashioned way: verbally notvtrxr to text.

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  3. I will continue to tip because anyway you look at it, Food Service is a thankless job. I also think that even if the pay rate is raised it won't be enough to attract good servers and staff. Good service hasn't gone the way of the dinosaur, its gone the way of the Screech owl, rarely seen but often heard.

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  4. Tipping is one of the greatest tools going. It let's the wait staff share in the value of how they serve. There are good reasons for the tip format. A friend of mine posted on Facebook in response to this issue, she made $25 per hour serving tables during college. Joe's would actually be cutting that pay by 40% to go to a fixed hourly with no tips. So the restaurant will get a $14 per hour server instead of the $25 per hour server they had before. If quality pays, and it does with tips, we'll all lose with fixed hourly servers. QSRs have been doing fixed hourly for years, but that's in a limited service setting. In the full service setting, let the servers earn what they deserve through tips.

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  5. On a recent trip to Rome it felt odd that generally tipping does not occur but service was flawless even for a caffe. I would hope for both higher wages and the chance to tip for good service as waiting is hard work

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