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CEO of Union Square Hospitality Group and Shake Shack, bans tipping

Posted on 10/14/15 at 5:51 pm
Posted by TJGator1215
FL/TN
Member since Sep 2011
14174 posts
Posted on 10/14/15 at 5:51 pm
quote:

Danny Meyer, the CEO of Union Square Hospitality Group and Shake Shack, announced plans on Wednesday to banish tipping at each of the group's 13 full-service New York City restaurants, Eater reports.

Instead the group will give workers a raise wages and the dining experience will get more expensive. Meyer will hike menu prices by 21-25 percent, and customers can expect to pay almost 10 percent more than they currently do for a full meal plus the tip, Forbes notes.

The acclaimed restaurateur said the move will allow for his group, which includes Union Square Hospitality Group restaurants, The Modern at the Museum of Modern Art and the high-end pizzeria Marta, to compensate all of its employees “equitably, competitively, and professionally” based on their work.


NSIAP
LINK
Posted by glassman
Next to the beer taps at Finn's
Member since Oct 2008
118614 posts
Posted on 10/14/15 at 5:52 pm to
I was just about to post this on the Food Board. All for it.

ETA: Link I might post on the FB is way longer than that one.
This post was edited on 10/14/15 at 5:53 pm
Posted by roadGator
DeBoar’s dome
Member since Feb 2009
159465 posts
Posted on 10/14/15 at 5:53 pm to
Hmmm. Will be interesting to see if it works.

Sounds like they will lose their best servers though. If so, you'll be paying more for lower quality service.

I trust him more than me though.
This post was edited on 10/14/15 at 5:55 pm
Posted by sullivanct19a
Florida
Member since Oct 2015
5239 posts
Posted on 10/14/15 at 5:59 pm to
So customers will pay a lot more and will have wait staff with zero incentive to provide good customer service.

It'll take one pay period for the wait staff to figure out they just need to do the minimum to not get fired so customer service is going to fall. But customers will be expected to pay more.

That should end well.

Come next April when taxes are due and customers have bailed on that restaurant, the wait staff will be begging to go back to tips in order to not see so much of their money disappear to the IRS and the owner will want the same as business will go down the tubes.

I'll have to take note of what restaurants do this stuff. I won't be going.
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
39265 posts
Posted on 10/14/15 at 5:59 pm to
I'm all about getting rid of tipping. The hard part is getting America to be willing to pay the increased menu prices.
Posted by baytiger
Boston
Member since Dec 2007
46979 posts
Posted on 10/14/15 at 6:00 pm to
quote:


Sounds like they will lose their best servers though
they serve shakes

that's not exactly a draw for high quality waitstaff in the first place
Posted by lsunurse
Member since Dec 2005
129146 posts
Posted on 10/14/15 at 6:03 pm to
quote:

they serve shakes

that's not exactly a draw for high quality waitstaff in the first place




Article said the CEO is doing this at all his restaurants....some which are more higher end.


Like another poster said....if you are a server that doesn't rely on tips, what is your incentive to give very good service. Waiting tables isn't difficult, but waiting on people can be a huge pain in the arse so why should a server bust their arse now when they can just do enough to skate by and keep their job.
Posted by roadGator
DeBoar’s dome
Member since Feb 2009
159465 posts
Posted on 10/14/15 at 6:03 pm to
quote:

includes Union Square Hospitality Group restaurants, The Modern at the Museum of Modern Art and the high-end pizzeria Marta


This right here. Do these have typical wait staff?
Posted by Epic Cajun
Lafayette, LA
Member since Feb 2013
37483 posts
Posted on 10/14/15 at 6:04 pm to
I'm all for it. Tipping seems like an outdated idea. Raise menu prices 20%, I don't care.
Posted by Evolved Simian
Bushwood Country Club
Member since Sep 2010
23317 posts
Posted on 10/14/15 at 6:04 pm to
quote:

they serve shakes


Wtf are you talking about? This has nothing to do with Shake Shack.
Posted by CajunSuperJeff
US military
Member since Dec 2007
622 posts
Posted on 10/14/15 at 6:04 pm to
quote:

they serve shakes

I have never been, but I pictured a Hooters knock off from the name alone.
Posted by Langland
Trumplandia
Member since Apr 2014
15382 posts
Posted on 10/14/15 at 6:06 pm to
quote:

I was just about to post this on the Food Board. All for it.
Food and Drink Board is weak.
Posted by Epic Cajun
Lafayette, LA
Member since Feb 2013
37483 posts
Posted on 10/14/15 at 6:07 pm to
quote:

quote:
they serve shakes

I have never been, but I pictured a Hooters knock off from the name alone.


Not close, really. This guy owns multiple other restaurants, which is what the article is about. They just included that he was the CEO of Shake Shack, because that is the most well known of his restaurant ventures.
Posted by NYNolaguy1
Member since May 2011
21849 posts
Posted on 10/14/15 at 6:07 pm to
quote:

So customers will pay a lot more and will have wait staff with zero incentive to provide good customer service


Maybe better servers will be drawn to the job, consistent pay, better benefits. Why would you lose workers after essentially giving them a raise? What's not to like on their part? Legally they are supposed to be taxed on tips, and as SS does most of their business with credit cards, I suspect they already are. Not to mention if they do a shitty job they get fired, like every other employee across the country. What makes food service special?

AFAIK Shake Shack doesn't exist outside of NYC, so I doubt it will affect most in the SELA area.
This post was edited on 10/14/15 at 6:13 pm
Posted by sullivanct19a
Florida
Member since Oct 2015
5239 posts
Posted on 10/14/15 at 6:07 pm to
None of this matters. They'll be serving Soylent Green before long.
Posted by glassman
Next to the beer taps at Finn's
Member since Oct 2008
118614 posts
Posted on 10/14/15 at 6:07 pm to
quote:

This right here. Do these have typical wait staff?


They own 13 restaurants, some of them are amongst the best in the country.
Posted by lsunurse
Member since Dec 2005
129146 posts
Posted on 10/14/15 at 6:14 pm to
quote:

Maybe better servers will be drawn to the job, increasing competition?


How would better servers be drawn to a job where they are not tipped? Only servers that are gonna want a non tipping serving job are those that are lazy and don't want to hustle to make good tips.


Why would I want to work a job for 5 hours and be paid $15/hr and walk away with $75 after 5 hours when I could work a job with tips for 5 hours and walk away with $150 on up in tips on top of my hourly wage?
Posted by glassman
Next to the beer taps at Finn's
Member since Oct 2008
118614 posts
Posted on 10/14/15 at 6:16 pm to
quote:

How would better servers be drawn to a job where they are not tipped?


It is how they do it in Europe and seems to work. It will take some period of time to see how this works out.
Posted by Teddy Ruxpin
Member since Oct 2006
41007 posts
Posted on 10/14/15 at 6:18 pm to
quote:

AFAIK Shake Shack doesn't exist outside of NYC, so I doubt it will affect most in the SELA area.



Hey man, we know you believe you live at the center of the universe in the City, but it does certainly exist outside of it, as do other things.

Just having fun with you
Posted by Evolved Simian
Bushwood Country Club
Member since Sep 2010
23317 posts
Posted on 10/14/15 at 6:23 pm to
quote:

AFAIK Shake Shack doesn't exist outside of NYC, so I doubt it will affect most in the SELA area.



Christ, can none of you read? This has nothing to do with Shake Shack.

These are the restaurants operated by Union Square Hospitality Group
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