Why a New York restaurant group has banned tipping

A restaurant group in Manhattan has banned tipping at some of the most prestigious dining establishments in New York.

The policy will launch at The Modern, a restaurant at Manhattan’s Museum of Modern Art, and selected other restaurants, such as Maialino, Gramercy Tavern and Union Square Café, over the course of the next year.

The Union Square Hospitality group, which employs 1,800 people, will begin the policy in late November.

In a statement, the company said that

countless laws and regulations ... determine which positions in a restaurant may, and may not share in gratuities.

The company also said that bills

won’t differ much from what you pay now. 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.

Reaction to the decision has been mixed, partly because the group is yet to specify how staff will be compensated for the loss of tips.

However, as prices are expected to rise between 21 and 25 per cent, it’s assumed that staff wages will rise in tandem.

(HT Guardian)

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