October 14, 2015

One of New York’s Most Influential Restaurateurs Just Ditched Tipping

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Danny Meyer, the man behind Shake Shack and a string of acclaimed restaurants in New York City and around the country, announced Wednesday that his restaurant group will be putting an end to tipping at all 13 of Union Square Hospitality’s full-service properties.

The move makes Meyer the most high-profile restaurateur to jump on the progressive policy, whose supporters argue that the tipping system doesn’t actually incentivize work and in fact leads to unequal pay.

In a letter posted on the company’s website, Meyer said that while he believes hospitality is “a team sport,” workers like cooks, reservationists, and dishwashers “aren’t able to share in our guests’ generosity, even though their contributions are just as vital” to a customer’s experience.

To compensate for higher wages, Meyer said his restaurants will be raising menu prices significantly.

The shift will begin in November at The Modern, located in New York’s Museum of Modern Art, and gradually roll out to the rest of the group’s restaurants. Shake Shack, however, will not be included in the changes.

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