Restaurateur Danny Meyer Made More Money After Ending Customary Tipping

Mar 15, 2016 04:20 AM EDT | By Anita Valensia

Danny Meyer eventually proves that tipping isn't necessary. After raising meal's price and says No to Tipping, The Modern Restaurant earns quite amount of profitable results. Restaurateur Denny Meyer who recently made a surprise initiative regarding the drop of gratuity. The compensation? He raises the price of meals to give a 'fair shake' to everyone in the service-staff team, including the manager and cooks.

Meyer is seriously taking the plunge to a grandeur scale under The Union Square Hospitality Group where his 13 restaurants end the customary tipping. As the price increases and the tipping's abolished, his cooks are able to earn better salary, $2 more per hour.

Meyer credited the buzz that ultimately makes The Modern more profitable despite the staff expenses. As the eatery was the first one to establish such rule, many guests were curious to test the 'hospitality included' program. The bounce works because he believed he's done the right thing. "We would have less turnover, we would have more applicants, a better product that more people would want to come try," Meyer told NY Daily News.

Meyer also explained to Eater that tipping didn't accurately express the cost of the staffs that made it happen, even for an eatery that tried to offer very good value. The businessman makes a comparison on tipping as how a person would see a doctor or take a flight - which is considered a demeaning practice. "You don't tip your doctor if they do a good job. You don't tip the airline pilot if the plane lands."

He feels that servers can be doing a wonderful job, and be given good tips, but their bosses not realise. Instead, Mr Meyer wants to see the creation of an online feedback system, where servers are rated and rewarded with promotion.

The service-based business will no longer need the waiters to 'beg' and on the customer point of view, gone are the days of complicated calculation after meal.

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