No Tipping Policies at Restaurants are on the Rise

More restaurants are beginning to reject giving customers the opportunity to tip their servers. This policy can lead to higher menu item prices. Out of 503 randomly surveyed restaurant owners, 18% have adopted the no tip policy, and another 29% of those surveyed plan to use this policy in the future. Joe's Crab Shack is one such national chain that had briefly adopted the no tip policy. They received many complaints from customers and employees, resulting in a reversal of the implementation of the policy. The culture of money habits and transactions is also changing. Some restaurants are even moving away from cash transactions because paying with a smartphone and receiving paperless receipts are becoming more and more in-demand.

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Written by Front Street Intern Aaron Garfinkel.