More food-service income controversy

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A recent move by Sushi Yasuda, a high-end Japanese eatery in New York, to prohibit customers from leaving gratuities — the restaurant raised menu prices by roughly 15% to cover waitstaff salaries — is prompting discussion about whether the no-tip movement could reach, well, a tipping point.

And it is a definite movement: Such renowned restaurants as Thomas Keller’s Per Se in New York and French Laundry in Yountville, Calif.; Alice Waters’ Chez Panisse in Berkeley, Calif.; and Grant Achatz’s Alinea in Chicago have similar policies in place. So did the recently closed Linkery restaurant in San Diego, where owner Jay Porter found that service improved because of the policy, despite widespread beliefs that the tradition of tipping fosters a culture of accountability.

In many eateries, gratuities are shared with support staff or even managers. There’s some thought that a no-tip policy may be the quickest way to avoid headaches and potential legal complications. For example, at Starbucks, the issue has become so thorny that baristas have sued to win back millions in tips that they allege were unfairly divvied; one case is currently making its way through the courts.

In that light, eliminating the whole issue of gratuities looks like “a win for the restaurants,” says management and strategy consultant Abhay Padgaonkar.






http://www.marketwatch.com/story/the-end-of-restaurant-tipping-2013-08-19?reflink=MW_GoogleNews&google_editors_picks=true
 
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