No Tipping???

Out of Forbes magazine comes a news article that will certainly catch the attention of the rest of the restaurant world. CEO Danny Meyer announced that tipping would be abolished at the firm’s 13 restaurants around New York City. Erika Anderson wrote “Without tipping, dining out won’t be an arbitrary math problem for restaurant-goers; service staff members can be rewarded consistently by their companies for outstanding performance (versus being subjected to the whims of diners); kitchen staff can be fairly compensated relative to servers; and restaurant owners can operate using a more reasonable model that profits from providing great service in every part of the operation.”

Unfortunately they did not go on to say how the customer will be able to make their wishes known and be compensated for poor service, which has sadly become the norm for far too many eating establishments. In the world of food service there have been a great many changes over the past decade. The promotion of the concept that 20% is now the correct tip and that servers should automatically receive a tip, no matter the quality, or should I say lack of quality in their performance.

There was no mention of how much of an increase in food prices diners would see, but I think it goes without saying that such a policy won’t go unnoticed. It’s doubtful that all waitresses and waiters will get an automatic 15-20% raise in their salary and if they don’t, there will most certainly be a exit of many good employees. No business magic here; something has to give to make up for the difference unless the company is going to take a 15% hit in it’s profits …. doubtful, very doubtful.

Personally, I travel a great deal now that I’ve gone back to work. Yes, retirement was OK, but just too boring so I started consulting again. Anyway, my travels take me throughout the Southeast, Midwest and the deep South. Like most places, there is a wide variety of eating establishments above your fast food fare. Finding a good sit down eatery that is clean, properly staffed, and the employee’s perform top notch is getting harder and harder to find. Unless you’re going into a place where your meal will cost $30 and up, you probably will find that minimal effort has been giving to training and managing servers. Simple manners are all but forgotten. How many times have you and your date, wife, significant other sat down only to be greeted by your server by “how are you guys today?” I’m no snob, but failing to recognize new and women as “ladies & gentlemen” or even calling us “folks” would be acceptable, but based upon my companions shirt size and hairdo alone, the idea of her being a guy would be the concept of somebody with an IQ in single digits! And I find few, if any, servers that really understand that a “tip” is for service that is average or better. Do you allow your server to come to table and hand you your silverware, drinks, or food??? And what happens if the order is wrong, or the food is cold? I find too many that think saying “sorry” is enough. I even had one waitress in an upscale eatery tell me “look mister, we certainly aren’t going to throw it away so you better eat it because you’re going to have to pay for it”.

TIP is often defined as “to insure promptness” but I think it should be more like “to insure professionalism”. In any case, if this latest move brings back the professionalism we used to all see in the average and above restaurant, I’m more than happy to see it. I’ll be watching to see how this new concept is accepted, but knowing corporate America, I doubt many others will follow, particularly if it means a price increase at a time where nobody wants to see higher prices.