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Will “No-Tipping” Save the Restaurant Industry?
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Will “No-Tipping” Save the Restaurant Industry?

Danny Meyer and Adam Rapoport
SXSW, 2016
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Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

Danny Meyer, CEO of Union Square Hospitality Group, has disrupted the restaurant industry by rolling out a “no-tipping” policy across all his eateries. Tipping is an American institution, so his idea has met much resistance. While food critic Adam Rapoport offers an unsavory masterclass in how not to conduct an interview by continually interrupting his guest during their hour-long conversation, patient viewers will be served with a rich taste of Meyer’s rationale. getAbstract suggests Meyer’s appetizing report to leaders, employees and patrons of the dining industry.

Take-Aways

  • After the abolition of slavery, the American restaurant industry embraced the custom of tipping as a “work-around to having to pay…service help.”
  • A tip is a “multiplier.” As menu prices and gratuity rates have increased over time, servers’ incomes have soared. Alas, kitchen hands are not eligible for tips, so a large wage disparity has grown between cooks and waitstaff.
  • To address the inequality, Danny Meyer abolished tipping at one of his New York restaurants, where customers must pay only the listed menu price.

About the Speakers

Danny Meyer is CEO of Union Square Hospitality Group. Adam Rapoport is the editor of Bon Appétit magazine.

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