Danny Meyer To Eliminate Tipping At All His Restaurants
NEW YORK (CBSNewYork) -- This is a first.
In a bold move, Danny Meyer, the chief executive officer of Union Square Hospitality Group, announced he is eliminating tipping from his family of restaurants, including The Modern, Blue Smoke, Gramercy Tavern and the iconic Union Square Cafe.
Meyer said tipping has become a major obstacle when it comes to career opportunities and advancement for the group's 1,800 employees.
"After a thoughtful, company-wide dialogue, I'm proud to let you know that Union Square Hospitality Group will eliminate tipping throughout our family of restaurants," Meyer said in a letter on USHG's website. "Starting at The Modern in late November, you will no longer find a tip line on your check, and there will be no need to leave additional cash at the table, the coat check, or the bar. Our other New York restaurants will make this change over the course of the next year."
Meyer said the total cost customers pay to dine won't differ much from the current cost, but the change will be significant for restaurant employees.
By law in New York, the back-of-the-house staff can't share in the tips.
"By eliminating tipping, our employees who want to grow financially and professionally will be able to earn those opportunities based on the merit of their work."
As CBS2's Tracee Carrasco reported, Meyer isn't the only one to make a change. Demian Repucci, owner of Bruno in the East Village, has had the policy in place since opening in July.
"There isn't any chance of feeling slighted or that you weren't tipped enough, there's no danger of a slow night and a server not making any money, they get paid hourly and go home happy," he said.
Bruno adds a 20 percent 'administration fee' instead of tipping, all employees receive a higher hourly wage and so far it's working.
"It's definitely much more stable, and it's less exhausting," Celina Strater said.
Though Meyer said the cost customers pay to dine at his restaurants won't differ much, prices will increase slightly to make up the difference. New York Magazine Food Critic Adam Platt said diners could see more of the no tipping concept.
"My guess is other restaurants will adopt it, maybe faster than you would think, but they will tend to be higher end restaurants," Platt said.
Melissa Fleischut of the New York State Restaurant Association agreed that other restaurants could be inspired to follow suit.
"Danny's always been a leader," added Bob Lape, WCBS 880's restaurant critic. "And the fact that he studied it hard and his very bright team did the same and then went ahead with it means a lot."
Lape said whether the change will be successful will hinge on the sticker-shock factor.
"Just how much will the prices have to rise on the menu in order to pull off this better distribution of the revenue?" Lape asked.
The Modern in Midtown will be the first of the Union Square Hospitality Group restaurants to adopt the no tipping policy in late November, the other New York restaurants will follow next year.
