“Following the custom in Japan, Sushi Yasuda’s service staff are fully compensated by their salary. Therefore gratuities are not accepted. Thank you,” says a bill at the Midtown Manhattan Japanese restaurant, which decided to do away with tipping this month.
Instead of leaving a gratuity at the end of the meal, Sushi Yasuda customers are now expected to pay a higher all-around bill, which includes a service fee.
Should other restaurants and bars follow suit?
Tipping Is Not Capitalism
By Steven A. Shaw, founder of eGullet and author of "Asian Dining Rules"
Sushi Yasuda, following the lead of most of the world's best restaurants, was right to do away with tipping.
I find that those who support capitalism -- and many who usually don't -- reflexively believe that tipping creates an incentive, controlled by the customer, for servers to provide better service. Were that true, there might be a market-based argument against doing away with it. But all the accumulated evidence and experience indicates that tipping disrupts rather than encourages healthy workplace incentives.
Managers should decide who gets paid more, not customers. This way servers won't have to resort to upselling or obsequious behavior.
The No. 1 activity the tipping system encourages is "upselling." Because most customers tip a standard percentage of the bill regardless of what happens during the dining experience, the most significant driver of a tip is the total cost of the meal. The more bottled water, coffee, alcohol, dessert and side dishes servers can sell, the more money they make. Neither servers nor customers actually enjoy this state of affairs, but the mythology of tipping as incentive is so firmly entrenched in American restaurant culture that most of us, regardless of our actual opinions, find it impossible to imagine a world without it.
Other bad behaviors encouraged by tipping include obsequiousness, which is one of the only activities other than upselling that studies show increases tips, along with servers who use their looks to win over customers. Many establishments encourage this practice, some more subtly than others. The restaurant chain Hooters is the most obvious about it, but every restaurant manager knows that when there are two equally skilled servers "on the floor," the more physically attractive and flirtatious one will generate more in tips.
Sushi Yasuda now explains on its receipts: “Following the custom in Japan, Sushi Yasuda’s service staff are fully compensated by their salary. Therefore gratuities are not accepted.” But this is not only the custom in Japan. It is the custom in other countries where I have experienced superior restaurant service, namely France and Singapore.
The best way to encourage quality service and a humane workplace is to follow the compensation structure of most successful, ethical corporations under the free-enterprise system: employees receive a living wage, as well as increased pay and career advancement when their superiors feel that they've earned it.
Tipping is not capitalism. It's a failed exception. And it's high time we end it.
http://www.nytimes.com/roomfordebate/2013/06/23/to-tip-or-not-to-tip/tipping-is-not-capitalism
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