A shift away from tipped wages in full-service restaurants could
translate into increased labor expenses, because higher hourly
rates would be needed to offset the loss of tips. The average
hourly wage for waiters in the U.S. was $10.40 in 2014, $8.27
more than the tipped minimum wage of $2.13.
This wage jump may be more than casual-dining chains could
offset with price increases. Operators will likely watch for how
employees and customers respond to Union Hospitality Group’s
decision to eliminate tipped wages.