Oct 14, 2015

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Famed restaurateur Danny Meyer is eliminating all tipping from his New York City restaurants — a move he says could save the restaurant business.

The food mogul, whose company Union Square Hospitality Groups owns hotspots such as the Union Square Cafe, Gramercy Tavern and Blue Smoke, will start rolling out his new no-tipping policy at the Modern, his most expensive restaurant, on W. 53rd St., next month.

The other eateries will follow.

MDC says, ultimately, it’s diners who will get the short end of the bread stick.

Meyer will hike up the prices of food and drinks at his restaurants in order to make the math work. Pricing is still being finalized for the November roll out, but the bill of fare will reportedly being increased from 20% to 25% across the portfolio.

For diners, that pencils out to the price of the meal, plus the tip they might have paid, plus an additional charge, which Meyer says will go towards increasing the wages of all restaurant workers, from the chefs, who take home the most green, to the dishwashers at the bottom of the food chain.

“The average person is going to do the math and say I was going to pay A plus B anyway,” Meyer told Eater. “In our case, it’s going to be A plus B plus C, because in addition to the 20 percent you would’ve tipped, we’re also trying to right what has been a labor of wrong, and that’s going to cost a couple more points on top of that.”

Meyer is obviously not the first restaurateur to get rid of gratuities.

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