5 lessons from restaurants that have dropped tipping

tip jar

“No matter what side you’re on, it’s a broken system,” said restaurateur Kevin Boehm, partner in Boka Restaurant Group, a multiconcept operation based in Chicago. His comment opened an industry panel on tipping presented on Sunday in Chicago by Union Square Hospitality Group, Danny Meyer’s restaurant company and a pioneer in exploring alternatives to compensating servers through tips. USHG introduced its “hospitality included” no-tipping policy last fall.

Since then, the model has been a hot topic of discussion in the industry, with most restaurateurs taking a wait-and-see approach as they learn from the leaders. Five of those leaders’ top learnings, hits and misses were revealed during the panel.

GET THE WHOLE STORY

Why become a member?

Log in to Restaurant Business for free access to this story and unlimited industry news, analysis and information.

Need to talk to someone at Restaurant Business?

Contact Lindsay Holley

Today's top stories

1
Eatsa, a concept that has made waves with its highly automated ordering and meal pickup operations, is being sued by a disability group that alleges the highly visual setup can’t be easily used by...
2
Starbucks plans to test a line of sandwiches made fresh daily inside stores in its latest bid to snare more lunch business. Sandwiches not sold within 24 hours will be donated to charity as a...
3
Boneless wings are one of those food items customers may not have even known they wanted at first, but these breaded, boneless pieces of chicken breast have turned into a finger-food success story...
4
Knowing the cost of all of the food and beverage you serve is vital to maintaining good controls. When you cost a recipe accurately, you can be assured that the costs of the ingredients you serve are...
5
The private equity firm Oak Hill Capital has teamed up with the management of the Checkers and Rally’s drive-thru chains to buy the twin concepts for $525 million from another investment firm,...
6
Brinker International has shifted the president of its Maggiano’s chain to a marketing and menu-development post at the company's core brand, Chili’s . As Chili’s EVP and chief marketing and...
7
Breakfast continues to be an area of growth and point of focus for operators across segments. But it’s no longer just reserved for the morning hours. Millennials are more interested in breakfast for...
8
Pie Five Pizza has pulled the plug on all eight of its Chicago locations this week as well as its locations in Minneapolis and Denver. The closures came with little notice. According to a statement...
9
Restaurants in Utah are mounting a last-ditch effort to prevent their state from becoming the first in the nation to limit how much alcohol people can drink and still legally drive to roughly one...
10
The parent of the Carl’s Jr. and Hardee’s burger chains has named Jason Marker, the former president of KFC’s domestic operations, to succeed Andy Puzder as CEO. Puzder, who has been CEO of CKE...