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Restaurateur Danny Meyer bans tipping at his restaurants (Wealth Redistribution Case Study)
NY Daily News ^ | 10/14/2015 | JOE DZIEMIANOWICZ, KATHERINE CLARKE

Posted on 10/14/2015 3:46:14 PM PDT by Kid Shelleen

--SNIP-- Ultimately, it’s diners who will get the short end of the breadstick.

Meyer will hike prices at his restaurants in order to make the math work — reportedly from 20 to 25%.

For diners who typically tip 15%, that means quite a change — though Meyer says the extra money will go towards increasing the wages of all restaurant workers, from the chefs, who take home the most green, to the dishwashers at the bottom of the food chain.

“The average person is going to do the math and say I was going to pay A plus B anyway,” Meyer told Eater. “In our case, it’s going to be A plus B plus C, because in addition to the 20% you would’ve tipped, we’re also trying to right what has been a labor of wrong, and that’s going to cost a couple more points on top of that.”

(Excerpt) Read more at nydailynews.com ...


TOPICS: News/Current Events; US: New York
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I find this small story to be a fascinating study in misguided government regulations. This is my take.

Mandatory minimum wage laws are forcing restaurant owners to find ways to make up the revenue. The solution?
They are hiding the tip in the total cost of the meal, as an "administrative fee". The tips that normally go to the waitstaff are being redistributed to other workers.
The wickedly brilliant part of the left is that once again they have used the guise of social justice to get another tax stream at the expense of working class people. The restaurant owner (Meyer) acts like the change was made in the "spirit of fairness" but really passes the cost on to the customer.

Of course all the lefties will be totally surprised when business is off and restaurants start closing.

1 posted on 10/14/2015 3:46:14 PM PDT by Kid Shelleen
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To: Kid Shelleen

There was a story here on FR a year or so back where the magnanimous restaurant owner decided to let customers pay what they could afford, if they elected to pay at all. The establishment closed soon thereafter.

Funny how liberals are continually bitten in the backside by the laws of real economics.


2 posted on 10/14/2015 3:59:22 PM PDT by Arm_Bears (Biology is biology. Everything else is imagination.)
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To: Kid Shelleen

He’s making income more TAXABLE.

Same as the women’s movement: It was all about DIGNITY, right?

Wrong!

It was all about making the unseen income of 50% of the population TAXABLE —mom has to work, get taxed, and then the people she hired to BADLY raise her kids ALSO gets taxed:

A TOOFER..!

Oh, and the kids also get into the school system much ealier, so mm, mm good, Barak Hussein Obama.

THEN women don’t need men, who get incarcerated and go on welfare.

AND the son follows suit, and the daughters also get knocked up and go on benefits, etc.

So rather than a twoofer it’s more like a fifther..?


3 posted on 10/14/2015 3:59:32 PM PDT by gaijin
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To: Kid Shelleen

Tipping is a brilliant scheme. Customer service is better in restaurants than in any other retail establishments of like caliber. Wait staff know that they will experience immediate consequences of service, good or bad. I always get excellent service in restaurants. Timely, professional and very personable.


4 posted on 10/14/2015 4:00:29 PM PDT by all the best
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To: Kid Shelleen

Redistribute money from the waiters to the chefs. That’s going to guarantee high quality waiters.


5 posted on 10/14/2015 4:02:14 PM PDT by PAR35
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To: Kid Shelleen

6 posted on 10/14/2015 4:04:03 PM PDT by Berlin_Freeper
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To: Kid Shelleen

It’s just a way to transfer wealth and ensure equality of outcome.

And that is a path to ensuring equality of input.

Quality of service will slide to the lowest common denominator.

How many waiters will now ask themselves “Why should I hustle? Without tips no matter how hard I work I still only make as much as the goof offs and incompetents?”


7 posted on 10/14/2015 4:04:43 PM PDT by Iron Munro (The wise have stores of choice food and oil but a foolish man devours all he has. Proverbs 21:20)
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To: Kid Shelleen

well the best waiters and waitresses are really just lucky...they really haven’t”built those skills”...so this does make it fair.


8 posted on 10/14/2015 4:04:47 PM PDT by CincyRichieRich (Some Animals are more equal than others.)
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To: gaijin

” it’s more like a fifther...”

I think I shall just get a fifth er whiskey and drink it.


9 posted on 10/14/2015 4:06:32 PM PDT by Lurkina.n.Learnin (It's a shame enobama truly doesn't care about any of this. Our country, our future, he doesn't care)
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To: PAR35
It has been that way for ages. I worked as a waiter at a high class French restaurant while going to college. Typical night was $150.00, Then the split was:

Maitre D - 10%
Bartender/cocktail waitress - 10%
Busboys - 10%
Kitchen crew - 5%

From my $150, I went home with about $100.

I worked 4 nights a week and made about $400 a week, plus wages (about $75 a week).

My apartment (3 blocks to the beach) was $150 a month. I was not complaining about either the minimum wage or the splits, as they all earned it.

I bet the system of splits has not changed over the years.

10 posted on 10/14/2015 4:19:36 PM PDT by Michael.SF. (This tagline lists all of Hilary's accomplishments............................)
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To: CincyRichieRich
HARRISON BERGERON
11 posted on 10/14/2015 4:29:48 PM PDT by ex91B10 (We've tried the Soap Box,the Ballot Box and the Jury Box; ONE BOX LEFT!)
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To: Kid Shelleen

The headline is totally bogus. this guy hasn’t banned tipping - he’s done exactly the opposite: he’s made tipping mandatory, and at a rate he’s decided on.

That’s all I’d need to know to make sure I never patronized his establishment.


12 posted on 10/14/2015 4:30:26 PM PDT by Stosh
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To: Stosh

His idea of fairness is charging his customers more. Hy doesn’t he forego any evil profit and give it to the noble dish washer


13 posted on 10/14/2015 4:45:40 PM PDT by Josa
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To: Stosh

Correct


14 posted on 10/14/2015 4:46:21 PM PDT by TexasTransplant (Idiocracy used to just be a Movie... Live every day as your last...one day you will be right)
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To: all the best

> I always get excellent service in restaurants. Timely, professional and very personable.

That hasn’t been my experience. The “service” I experience is for the most part is mediocre. Tipping pretty much encourages servers to handle more customers at once.


15 posted on 10/14/2015 4:52:14 PM PDT by glorgau
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To: Stosh

It means that the service will always be premium quality - without exception.

If there is an exception (and there will be) then he is ripping of his customers by making them pay for good service when they don’t get it. Smart restaurantuer!


16 posted on 10/14/2015 4:52:53 PM PDT by 17th Miss Regt
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To: Kid Shelleen

.....I think “socialist” Europe and “socialist” New York do indeed have a lot in common and therefore this “socialist” approach at Danny Meyer’s Restaurants might work. It will be interesting to see if it does.

But, in Central Texas, even a few bad or awful service complaints and your out of business. So, I don’t see this Euro/New York idea spreading. And, most folks here would see right through this scheme and not even patronize the place to begin with.


17 posted on 10/14/2015 4:58:41 PM PDT by Cen-Tejas (it's the debt bomb stupid)
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To: Kid Shelleen

Economic experiments can be wicked fun.


18 posted on 10/14/2015 5:15:32 PM PDT by Paladin2 (my non-desktop devices are no longer allowed to try to fix speling and punctuation, nor my gran-mah.)
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To: Kid Shelleen

So now you’ll also have to pay 9% additional sales tax on the 25% dining cost increase. No sales tax on tips.


19 posted on 10/14/2015 5:32:46 PM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: all the best

“I always get excellent service in restaurants.”

Me too. Namely because I don’t go to many and the ones I do go to I go to repeatedly, and I tip well for good service. At one restaurant, I ask for a specific server every time and tip like crazy, including an extra tip for the sushi chefs. This server knows our names and what we order; we practically don’t need menus. And when we bring guests, it’s almost embarrassing as the staff greets us effusively and by name. The sushi chefs always carve us large chunks of yellow tail, too.


20 posted on 10/14/2015 5:39:47 PM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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