Restaurateur Danny Meyer Says "No Tipping" Model Works

The Brian Lehrer Show | Dec 10, 2015

It's only been about a month since Danny Meyer, New York City restaurateur and founder of Shake Shack, implemented a "no tipping" policy at his restaurant The Modern. And according to him, it's going well.

Meyer says, "It takes a village to create a restaurant experience," and the typical tipping system doesn't take care of everyone.

Thirty years ago, when he first opened his flagship bistro Union Square Café (which will soon be relocating), menu prices were lower and New Yorkers were tipping less than they do today (15% thirty years ago compared to 20-21% today). As a result, servers' incomes have gone up 250% while kitchen employees' incomes have increased by only 25% or so.

Meyer thinks the "hospitality-included" model has created more balanced wages in his restaurant, while removing the "counterintuitive" dynamic between servers and diners that comes from tip-based service.

Meyer is also the Chief Executive Officer of the Union Square Hospitality Group.

→ Dig a little deeper: hear all about the history of restaurant tipping from The New Yorker's Adam Gopnik, about two months ago on our show.

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