Danny Meyer to eliminate tipping at NYC restaurants

“It has become increasingly clear to us that a major obstacle in this endeavor is the practice of tipping”, Meyer wrote in a letter on the group’s website.

The New York Times noted that the 57-year-old CEO of the Union Square Hospitality Group announced the new plan on Wednesday calling it a change in how to reward restaurant employees.

“We remain more committed than ever to our promise of delivering excellent dining experiences with warm hospitality – and we hope that you will both support our team and join us on this journey”, Meyer wrote. Union Square Hospitality Group restaurants include everything from The Modern, a Michelin-starred restaurant at the Museum of Modern Art, to Marta, a high-end pizzeria north of Madison Square Park.

“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”, Meyer said in a statement.

The restaurants will raise menu prices to offset the change in tipping policy, according to Eater. A few of these establishments added a flat service fee to customers’ bills; other increased menu prices.

Nowadays, Meyer is not alone when it comes to the no-tipping rule as many restaurants around the county have applied it. But for our teams, the change will be significant. “We will now have the ability to compensate all of our employees equitably, competitively, and professionally”. USHG chief restaurant officer Sabato Sagaria wouldn’t share any details about how exactly that model will work, but predicted 79% of the dining room staff would see their pay go up.

The company’s new tip-free approach will favor all restaurant employees equally, Meyer told Eater, distributing benefits among the serving and kitchen staff. And there are other plusses: banishing tipping simplifies bookkeeping, reduces the sexual harrassment of female servers and discrimination of minorities, and eradicates the possibility of waitstaff being stiffed by diners.