Restauranteurs are likely to take a wait-and-see approach to Union
Square Hospitality Group’s adoption of the European-style restaurant
model. If eliminating tipping and raising prices spreads in the U.S.,
chains would likely invest in technology to reduce labor.
Server handhelds, tabletop tablets and mobile payment can enable
workers to cover more tables, allowing restaurants to have fewer front-
of-the-house employees. This would offset higher labor and employee
taxes. Remaining waitstaff would cover more tables. v