'What you see is what you pay' - why some US restaurants are banning tips
Some US restaurants are eliminating tipping in favor of higher menu prices to ensure staff receive consistent, higher wages. Owners argue this model promotes pay equity and reduces reliance on customer generosity, though it requires significant price adjustments.
Why it matters
It reflects a shifting trend in the hospitality industry toward wage transparency and addressing systemic pay disparities.
Image source, Caroline Kraetzer Image caption, Caroline Kraetzer no longer gets tips but her salary is double the norm
Wine waiter Caroline Kraetzer earns $40 (£30) an hour, double what most service staff in San Francisco are paid but then it costs a lot to eat at her restaurant.
At a set price of $140 (£100) per person, La Cigale is one of a small number of restaurants charging higher prices so it can pay high salaries - and it doesn't allow tips.
It tells customers: "What you see is what you pay. We do not accept tips, your kind words and return visits will suffice."
Kraetzer says it is good to no longer be "reliant on the generosity of strangers to pay the bills".
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