Tag Archives: hospitality industry

Restaurants that got rid of tipping are bringing it back.

Because, as I’ve relentlessly insisted, tipping works better for everyone: the server, the customers and the establishment.

From our friends at THE RAIL a great industry publication:

CAN’T END TIPPING
Why it matters to you: restaurants have not been able to successfully end the tipping system. 
The tipping debate has caused controversy in the restaurant industry for years now. Some establishments believe that tipping is an unfair practice that puts servers ahead of the back of house staff whereas others believe the tipping is a fair practice that shouldn’t be changed. It’s been less than a year since the Oregon-based restaurant, Le Pigeon and Little Bird Bistro decided to enforce a no-tipping policy and as of last week, they have reinstated tipping. The original deal was that they would raise food and beverage prices an average of 20 percent to include tip, but unfortunately the higher prices were too much for some diners. The prices are now reduced to not include the tip and it will now be given manually.

This restaurant made a vast effort to change the system which is incredibly noteworthy. Unfortunately, the tipping system is so ingrained in the restaurant industry that it becomes incredibly difficult to interject a new structure. According to a tipping expert and professor at Cornell University of Hotel and Administration, there is really no obvious solution to the problem. “The biggest reason for restaurateurs to keep tipping is that it allows them to reduce menu prices, which increases demand.” He goes on to recommend that restauranteurs look at the level of difference between employees specifically BOH and FOH, and replace the tipping system if this is where “the highest pay discrepancies exist.”

Millennials Really Do Have It Rough

It’s fashionable to make fun of America’s 75 million Millennials, but I think they have it rougher than Boomers and Gen X. They may have more digital toys, but they also have a lot more student debt, a lot less job security, and zero privacy.

Older people who criticize the “selfishness” and other irresponsible traits of Millennials are forgetting how they acted in their 20s. Youthful obnoxious foolishness is common in every generation.

I remember in the 80’s we were called the “Me Generation.” Sounds familiar.

“Millennials” is just the latest name for young people. The complaining is just older people bitching about the young. Same as it ever was.

For those of us in the hospitality industry, there are more Millennials than Boomers or Gen X, and they are in the peak years of dining out and nightlife. So better understand them rather than attack them.

Here’s some relevant facts on Millennials. Contact us for much more help for bars and restaurants in building a loyal following of Millennials and other desirable customers.

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