Why would anyone hate the idea of doing away with tipping? I’ve never heard one person express a preference for tipping (who wasn’t a server). I completely understand why switching would be costly to an owner though.
Some people think it may lower the incentive to give good service, others want the ability to reward or punish depending on the quality of the service. I really don’t agree with either point of view, but I’ve heard several variations on these reasons.
The two types of state laws that drive the inequity between front and back of house are lack of tip credit (especially in states with higher minimum wages) and restrictions on sharing in tip pooling. I don’t think getting rid of the latter would fix the problem by itself, because the more experienced servers will gravitate towards restaurants who don’t pool tips with back of house. Many of the approaches restaurants have tried to get rid of tipping would work if all restaurants used them, but they don’t.
You’ve heard one. Me. But seriously, without detailing why, a lot of people want to do away with tipping, and a lot don’t.
One local seafood spot gave it a try and they had to revert, as business significantly dropped off.
The author of that piece isn’t advocating for the elimination of tipping, just the tipped minimum wage. This is the much lower minimum wage that can be paid to tipped employees in most states, but not in California or New York where many of the restaurants trying to eliminate tipping are located. The lack of a tip credit is one of the factors driving the desire to eliminate tipping in high end restaurants in states that are significantly raising their minimum wage.
One of the issues is that the restaurant business has different market segments, there are very different dynamics in places like Denny’s compared to places like the Danny Meyer restaurants.
I actually didn’t know what your position was. No offense, but your first post is grammatically bizarre and didn’t really make clear whether you were for it or against it.
I acknowledged that my position was anecdotal, but having discussed this in group settings any number of times I’ve only met proponents of doing away with tipping, including amongst my friends in the restaurant industry (which tends to include current chefs and former servers but admittedly no current servers which might give a more balanced view). It just seems a bizarre way to do business to me, fraught with awkwardness and uncertainty. For restaurants and their staff the situation invites significant tax and legal problems, which often occur. At this point I tend to do as Yaacov mentioned above and simply go 20% of the post-tax total unless service was really bad or really excellent. So it isn’t particularly inconvenient since I have a “standard rate” but overall it seems an awkward, ill-conceived approach to compensation and to what is essentially a retail transaction. Arguments for continuing the system seem based primarily on fear of change.
someone i admire in the NYC hospitality industry calls the tip the “second installment” and it’s a good way of describing it. it’s easily avoidable and the worst thing at the worst time.
I went to my first no-tip restaurant last weekend (Le Pigeon), and I liked it. Menu prices were definitely higher than I was used to, but after figuring in the tip, they seemed about right. The service was impeccable, with a greater degree of teamwork than I usually expect.
Would be good to hear an economists perspective. The tricky part is that not all restaurants use the same approach.
Seems to me that tipping and real low base wages mean the waiter is working for the customer (“don’t have the steak it’s terrible”). Not a bad idea but I wonder what the owners would think.
A connected issue is that waiting is generally a low status job in North America compared to France for example.
The logical approach would have all staff in the restaurant paid a decent wage, and earn bonuses awarded by the restaurant based on performance over the year. Just like other businesses. But this is a classic “how do you get there from here” problem. So many practical issues with the logical approach, e.g. Staff who don’t stay a full year, lack of metrics for a fair bonus system etc.
I’m interested in the divergence between North American and European approaches, how did it arise?
My thoughts exactly. Knowing that most people are going to hew to a percentage more or less, the higher the bill the better. I wouldn’t call that working for the customer’s best interest, even if they do tip you off that the steak is actually horse meat. (okay, well maybe in that case…)
Why is waiting the one profession (or at least one of the main professions) where paying artificially low wages and encouraging tipping supposed to ensure that employee is working for the customer?
Presumably most of the people who posted in this thread have jobs. And presumably many of those jobs ultimately derive their source of income by selling things to customers. Do you work less hard to satisfy your customers because you get paid a salary or hourly wage?
Further the waiter doesn’t and shouldn’t “work for the customer”. The waiter is employed by the restaurant. With tipping, now the waiter has two employers. People have referenced above some of the conflicts in play there - the waiter works to maximize his income from the customer (which is rational). But in doing so can do things that hurt the revenue of the employer (for example waiving corkage because the waiter got a taste or a bigger tip was implied).
tipping is gauche. if an establishment needs more revenue to pay a higher wage to staff, charge more. i am not interested in making decisions about how much to leave in return for “service.” the worst part about it is even if you get the worst possible “service” imaginable, a tip is still expected.