Restaurant rents may rise if full-service U.S. chains eliminate tipping.
Restaurants would raise menu prices, which would boost revenue
and drive up rents because of rental agreements that often require
restaurants to pay landlords a percentage of sales.
Rents may be renegotiated prior to the end of the lease
(often 10-20 years) depending on location. Chains in larger cities
may face concessions such as higher maintenance or longer terms.
An inability to renegotiate may mean some chains delay