Could This Be the End of Restaurant Tipping?

Could This Be the End of Restaurant Tipping?Could This Be the End of Restaurant Tipping?

I’m all in favor of it, but it’s been a slowly growing trend.

Some restaurants are increasing their prices by 20% or so and banning tipping.


Just from a marketing point of view, ending tipping can help differentiate a restaurant.

From an accounting point of view, the end of tipping makes your payroll easier to handle. You don’t have to decide how much each of your employees gets when a tip is left. Does the cook get a part of the tip? How about the person that cleans off a table? How about that smiling greeter who politely seats customers?

You also need to figure out how to report tips to the IRS.

What do you do with and how do you handle tips left on a credit card? Does your wait staff just pocket tips? If they do, you still need to report it to the IRS.

You must also be in compliance with all those federal, state, and local laws. Just taking tips almost requires a full time CPA and lawyer to make sure that you are in compliance with all those regulations (including minimum wages and overtime).

The easy way out is just stop accepting tips, raise the prices on your menu, and increase employee wages by an amount at least equal to their total wages with tips.

Put a big sign on your window and menu letting patrons know that employees no longer accept tips.

Banning tips is different from adding a mandatory 15% or 18% tip to a bill. Depending on your local laws, adding a mandatory tip is equivalent to adding that amount to employee payroll since mandatory tips are treated differently than gratuitous tips.

This no tipping trend is becoming more popular within the United States. If you leave a tip in Japan (and many other countries), it’s an insult. Why should you have to pay extra to get good service?

I agree. I believe that your wait staff should be trained to treat every customer royally. You should not have to pay extra for good service. Any business should be offering exceptional service with or without a tip.

Yes. I am also against placing tip jars next to a cashier (often found at fast food establishments). I believe that if your counter staff is not already offering exceptional service, you should fire them or retrain them.

I am sure that not too many customers have or are going to give up tipping, but it is an interesting concept and a growing trend.

Read about one restaurant that has given up tipping at:

Could This Mean the End of Restaurant Tipping (CNN Money)

Read about the tipping customs and legalities of tipping throughout the world at:

Gratuity (Wikipedia)

Get some more opinions on the subject at:

Should Restaurant Tipping Be Banned?

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