4 ms·

There is certainly nothing preventing a restaurant from implementing this: offer wait staff a higher salary but tell them they're forbidden from accepting tips.

There is certainly nothing preventing a restaurant from implementing this: offer wait staff a higher salary but tell them they're forbidden from accepting tips. Do you expect such a restaurant will attract the best talent? I do not.

improbable22 8y ago
I forget the names but various high-profile restaurants in the US have tried this, and abandoned it. I don't know whether the problem was with attracting capable waiters, or the price scaring off customers, or just change making people uncomfortable. But there seem to be two equilibria. Opening a restaurant in Paris and telling diners they should tip 20% because you aren't paying the waiters (oh and we left VAT off the menu, another 20%)... even if this were legal, I think you'd have great trouble attracting either customers or waiters.
- darkpuma 8y ago
  In Paris the waiters would not have prior experience telling them it's possible to succeed financially under such a scheme in that market. Without the eagerness of waiters to adopt such a scheme, there would be no public support for it from the customers. I think maybe that's the part of the picture into the American tipping situation that Europeans and 1% Silicon Valley workers alike are missing. Most Americans who support tipping do so because they personally know a waiter who knows they make out like a bandit from the scheme. Europeans are less likely to be personally acquainted with an American waiter than your average American, as are wealthy tech workers on the spectrum.
CPLX 8y ago
I ate at such a restaurant recently, it was fantastic. Seems like they’re quite busy: https://www.manhattarestaurant.com/ https://www.manhattarestaurant.com/
- darkpuma 8y ago
  Restaurants that try it generally have two characteristics. They're trendy for being politically novel, and they flame out. Let's see how they're doing in five years and if other restaurants are forced to adopt their model to compete for talent.

improbable22 8y ago

I forget the names but various high-profile restaurants in the US have tried this, and abandoned it. I don't know whether the problem was with attracting capable waiters, or the price scaring off customers, or just change making people uncomfortable. But there seem to be two equilibria. Opening a restaurant in Paris and telling diners they should tip 20% because you aren't paying the waiters (oh and we left VAT off the menu, another 20%)... even if this were legal, I think you'd have great trouble attracting either customers or waiters.

darkpuma 8y ago
In Paris the waiters would not have prior experience telling them it's possible to succeed financially under such a scheme in that market. Without the eagerness of waiters to adopt such a scheme, there would be no public support for it from the customers. I think maybe that's the part of the picture into the American tipping situation that Europeans and 1% Silicon Valley workers alike are missing. Most Americans who support tipping do so because they personally know a waiter who knows they make out like a bandit from the scheme. Europeans are less likely to be personally acquainted with an American waiter than your average American, as are wealthy tech workers on the spectrum.

CPLX 8y ago

I ate at such a restaurant recently, it was fantastic. Seems like they’re quite busy: https://www.manhattarestaurant.com/ https://www.manhattarestaurant.com/

darkpuma 8y ago
Restaurants that try it generally have two characteristics. They're trendy for being politically novel, and they flame out. Let's see how they're doing in five years and if other restaurants are forced to adopt their model to compete for talent.