No Tipping Policies: Newest Restaurant Industry Trends

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Tipping has become the hottest topic in the restaurant industry. Trends show that the ‘no tipping movement’ is being met with mixed reactions by both consumers, servers and restaurant managers alike.

In order to make no tipping policies work, restaurants marginally raise their menu prices to account for an increase in pay to the server. The servers then work for a flat fee instead of low wages and relying on tips. The most recent supporter of the no tipping movement is Joe’s Crab Shack who tested the policy in 18 of its franchise locations. “We believe that consistently great service should always be included in the menu price, so we are taking the responsibility for paying the service staff,” said Ray Blanchette, CEO of Ignite Restaurants. “I personally believe tipping is an antiquated model and you have seen most businesses in America migrate away from it over the last 50 to 100 years.”

Danny Meyer, New York restaurant mogul weighed in on the topic by stating, “We believe hospitality is a team sport, and that it takes an entire team to provide you with the experiences you have come to expect from us. Unfortunately, many of our colleagues — our cooks, reservationists, and dishwashers to name a few — aren’t able to share in our guests’ generosity, even though their contributions are just as vital to the outcome of your experience at one of our restaurants.”

Does Tipping Motivate Good Service?

60% of Joe’s Crab Shack customers surveyed responded that they disliked the new policy. They felt it took away from the incentive to provide exceptional service, and didn’t trust that the price increase was being passed on to servers. Some servers quit over the new policy, but it was believed that the change would increase the restaurant’s bottom line. While many consumers believe that tipping increases motivation to provide service, fast food franchises have been operating successful establishments for many years without the motivation of tips behind their service.

To Tip or Not to Tip?

While restaurant industry trends show tipping could become a thing of the past, whether you choose to tip or not at Bruges, you will always receive the same level of high quality service. Our restaurants were not built to incentivize employees with tips, but rather to provide an authentic European dining experience to each of our customers. Instead of getting caught in the heated debate of tip or no tip, come to Bruges and get caught up in unique Belgian creations. Can you smell the waffles?

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