Yesterday, the New York restaurant industry was turned on its head when Union Square Hospitality Group announced plans to eliminate tipping. Grub Street reports that Danny Meyer—the mastermind behind popular New York restaurants like Gramercy Tavern, Union Square Cafe, and Maialino—will be raising prices on menu items in order to eradicate tips. The increase in food costs will allow restaurant workers to be treated more fairly. In a letter to the website, Meyer said, “We will now have the ability to compensate all of our employees equitably, competitively, and professionally. And 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.” The people whose salary depended on tips will see their base income expand, thanks to a revenue-share program. Meyer plans to roll out the change slowly over the course of the next year, beginning with his most expensive eatery, the Modern, in November.
Experience Gramercy Tavern from afar by browsing through the restaurant’s namesake cookbook.
Is getting rid of tips a good idea or a bad idea?