Union Square Hospitality Group’s decision to eliminate tipping
at its 13 full-service restaurants and instead raise prices may have
significant implications for full-service restaurants across the U.S.
CEO Danny Meyer said the company aims to boost pay for
staffers who don’t normally share in tips to waitstaff, such as
cooks, dishwashers and reservationists.
Labor, rent, credit card and tax expenses will likely jump
significantly, however, and the chain risks alienating customers
and its best waitstaff.