Last month, Danny Meyer made headlines with his announcement that his restaurant group, Union Square Hospitality Group, would no longer be using the standard tipping model to compensate servers. He announced that his group would be moving to an higher hourly wage for tipped employees and increasing prices to do so.
In D.C., two restaurants are already using the no tipping policy and are finding that customers' reactions are mixed. At Sally's Middle Name in northeast, diners are charged an 18 percent service fee and while management has not heard any complaints, customers have taken to social media to voice their frustration with the charge.
As more and more restaurants move to this model, it will be interesting to see how customers adjust to the higher price points. Read more.