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Danny Meyer and Union Square to eliminate tipping

By James Russell: Danny Meyer and Union Square to eliminate tipping

October 19, 2015

Danny Meyer of Union Square Hospitality Group

Danny Meyer of Union Square Hospitality Group in the US has written to advise customers of a major change to their policy on tipping – its elimination in their restaurants. Given the current debate in the UK on this issue, it will be interesting to see if and how their solution is adopted here.

He writes:

“Recently, our entire company has been engaged in a robust conversation about how we can provide even more meaningful career opportunities and advancement for our 1,800 employees. It has become increasingly clear to us that a major obstacle in this endeavor is the practice of tipping.

Team sport

“There are countless laws and regulations that determine which positions in a restaurant may, and may not share in gratuities. We believe hospitality is a team sport, and that it takes an entire team to provide you with the experiences you have come to expect from us. Unfortunately, many of our colleagues — our cooks, reservationists, and dishwashers to name a few — aren’t able to share in our guests’ generosity, even though their contributions are just as vital to the outcome of your experience at one of our restaurants.

No more tips

“After a thoughtful, company-wide dialogue, I’m proud to let you know that Union Square Hospitality Group will eliminate tipping throughout our family of restaurants. Starting at The Modern in late November, you will no longer find a tip line on your check, and there will be no need to leave additional cash at the table, the coat check, or the bar. Our other New York restaurants will make this change over the course of the next year.

Compensating all employees equitably

“Once these changes are implemented, the total cost you pay to dine with us won’t differ much from what you pay now. But for our teams, the change will be significant. We will now have the ability to compensate all of our employees equitably, competitively, and professionally. And by eliminating tipping, our employees who want to grow financially and professionally will be able to earn those opportunities based on the merit of their work.”

For more information click here

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