U.S. Restaurants Experiment with No-Tipping Policies

August 25, 2015

Restaurant owners, customers and staff have long railed against the tyranny of tipping, but like a love affair gone bad, it has proved difficult to quit. Now, prompted by a spurt of new minimum wage proposals in major cities, an expanding number of restaurateurs are experimenting with no-tipping policies as a way to manage rising labour costs.

In Seattle, where the first stage of a US$15-an-hour minimum wage law took effect in April, Ivar’s seafood restaurants switched to an all-inclusive menu. By raising prices 21 per cent and ending tipping, Bob C. Donegan, president and co-owner, calculated he could…