Danny Meyer Eliminates Tipping

Danny Meyer is one of the most influential leaders in the hospitality industry. His restaurants range from high scale restaurants like the Gramercy to his famous burger chain, Shake Shack. Recently, Meyer outlined his plans to eliminate tipping at every restaurant in Union Square Hospitality concepts. Instead, prices on the menu will be raised to “hospitality included.”

Debates on whether the hospitality industry should eliminate New York City has been a reoccurring discussion. Some restaurants have already took initiatives to eliminate tipping, however, no regulation has been introduced to the industry. Advocates of eliminating tipping is hoping that with Danny Meyer’s shift to “no tipping,” it will help to revolutionize the industry in general.

The first restaurant to implement the change is the Modern. The cost of each dish will be increase 30 to 35 percent, and a note about the new policy will be on the menu. Unlike, Per Se, there will be no extra space for customers to write an extra tip on the bill. Meyer believes the increase in dish costs to include hospitality will benefit every staffer employed by his company. It will allow proper pay to low-earning cooks who won’t benefit from New York’s increase in minimum wage.

With a “no tipping” policy, employee salaries have been altered to cater to the change. Meyer’s employees will earn at least $11 per hour for back-of-the house staffers and $14 per hour for cooks, and $9 per hour for dining-room staff.

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