By John Barrera
Two months ago Danny Meyer of Union Square Hospitality Group (USHG) announced that by the end of 2016 all thirteen of his New York City based restaurants will eliminate the tipping portion of your dining experience from all their foodservice establishments.
If you think this is not an issue—bring it up at your local bar or restaurant after dinner and watch opinionated New Yorkers give you some of their two cents. Recently I was in the midst of one of these conversations and, although I voiced my opinion, I was not that well prepared. But as the conversation continued I realized no one at the bar really knew what they were talking about either. The more I researched this the more I realized this is an experiment and no one really knows the outcome.
From what I understand, gratuity will not be a line on your credit card receipt. You’ll get your check, hand over your credit card, get two copies back, sign one and you’re done. The difference being if you pay $100.00 for a dinner for two, now after this you will be paying roughly north of $120.00 closer to $130.00 depending on what you order for food and drink. My guess is that your $8.00 side of creamed spinach will now be $11.00 and you $32.00 fillet mignon will be $38.00. The plan from what I’ve read is to increase cash flow 20 to 30 percent.
This will allow them to increase wages for the kitchen staff and give the front of the house staff a solid hourly wage—allowing retention of quality help.
The argument begins when people start to think about taking the gratuity from the service staff and giving it to the other restaurant employees.
“So what you’re telling me is the service staff is taking a pay cut to subsidize the kitchen. The restaurant should be paying a fair wage to begin with and not taking it from the service staff!”
Truth be told, it’s not that clear cut. How much do you tip? Fifteen percent? Or do you double the tax leaving sixteen and a half percent? Or do you leave twenty percent? And if so, is that twenty percent before or after tax?
Some people say they leave whatever the service warrants. This is code for less than fifteen percent. Whichever method you choose everyone tips differently. And although a server can get a great tip they can also get a party of six from Spain that will leave only five percent because in Spain, like in many other countries, the service is included in the price.
What USHG is doing is making the foodservice industry a solid career path—whether you’re in the front or back of the house.
Not many kids growing up when asked what they want to be say, “a waiter” because it’s not a career path that leads to a solid future. USHG is trying to change that. I’ve read recently that they’re going to be offering profit sharing to their employees—something unheard of in foodservice.
We all enjoy a nice evening out at a restaurant
with good food and good service. I think this will only enhance the experience and make the foodservice industry even more important to the socioeconomics of this country.
