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Hacker News·4 min read·medium

Why some US restaurants are banning tips

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Why some US restaurants are banning tips
AI Summary

Some US restaurants are adopting a no-tipping model by increasing menu prices to provide higher, more stable wages for staff. Owners argue this approach creates a more equitable work environment and reduces reliance on customer generosity.

Why it matters

This shift challenges traditional American service industry norms and addresses systemic issues regarding wage inequality and bias in tipping.

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Share Save Add as preferred on Google Suzanne Bearne Caroline Kraetzer 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 US 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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