Restaurant owners warn trend is 'degrading' dining experience

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Restaurant owners warn trend is 'degrading' dining experience
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He gave these crass customers his two one cents. Popular NYC influencer Darron Cardosa, aka The Bitchy Waiter, recalled the worst tip he ever received — a penny left at the bottom of a glass by a trio of ill-mannered ladies at Houlihan’s on West 49th Street and 7th Avenue.

As more restaurants experiment with eliminating tips, the idea of a no-tip dining model is gaining traction — but not without resistance from some industry professionals who fear it could drag down service.

The shift is a response to growing frustration among diners. Hidden fees, service charges, and inflated gratuities have left many customers feeling blindsided when the check arrives.“There are two categories of reasons — one for the guest experience, one for the staff,” Joseph Magidow, chef and owner of La Cigale in San Francisco, told Fox News Digital.“Diners have broadly lost patience with mandatory fees and surcharges being added to their bill at the end of the meal,” Magidow said. Instead, Magidow said his restaurant builds labor costs directly into menu prices, creating what he describes as a more transparent experience. “By offering a fully inclusive pricing model, our guests do not get an unpleasant surprise after their experience dining with us,” he said.As more restaurants experiment with eliminating tips, the idea of a no-tip dining model is gaining traction — but not without resistance from some industry professionals.“For staff, the tipped model creates a raft of unpredictability and perverse incentives,” Magidow said. Now, “by paying them a flat hourly wage — the cost of which is baked into our prices — they are no longer showing up to work every day not knowing whether they will earn enough to make rent this month.”Derek Simms, who operates multiple restaurants in Frisco, Texas, said he believes the traditional tipping system works — particularly for servers, who can average $40 to $60 per hour. By contrast, kitchen staff typically earn far less, he added — complicating efforts to restructure pay across the board. “The cooks don’t have access to the tips,” Simms said, adding that it’s a “misleading narrative” that servers are “getting paid less, because they’re not.”“Diners have broadly lost patience with mandatory fees and surcharges being added to their bill at the end of the meal,” Joseph Magidow, chef and owner of La Cigale in San Francisco, said.Simms, who worked in California before moving to Texas, said eliminating tips would force restaurants to raise wages in a way that most business models can’t sustain. “If you hire everybody at $15 or $20 an hour … the restaurant loses all their profit and will eventually close down,” Simms said.Simms said he expects “service levels to go way down” in California, where La Cigale and other restaurants are using a no-tip model.Instead, Magidow said his restaurant builds labor costs directly into menu prices, creating what he describes as a more transparent experience.Michelle Korsmo, president and CEO of the National Restaurant Association in Washington, D.C., said research shows that tipped servers earn a median of $27 per hour, “and that earning potential is a major reason She previously told Fox News Digital that “for years, full-service restaurant operators and their employees have worked together to preserve tipping because it works for servers. It supports higher earnings for workers and helps ensure restaurants remain places where people can build careers that fit their lives and long-term goals.”Derek Simms, who operates multiple restaurants in Frisco, Texas, said he believes the traditional tipping system works — particularly for servers, who can average $40 to $60 per hour.“There’s no incentive for the servers to be attentive and give extra-good service,” Vicki Parmelee, owner of Jumby Bay Island Grill in Jupiter, Florida, told Fox News Digital. “I like the tip system,” he said. “I think it rewards people. It keeps people hustling for you.”Simms, who worked in California before moving to Texas, said eliminating tips would force restaurants to raise wages in a way that most business models can’t sustain.Taking away the enticement of working for tips would lead to “degrading service levels,” Simms warned.“I don’t particularly care for that — and I don’t think that the servers do either,” Parmelee said. “I don’t know. Some restaurants are trying that out. I’m not interested in doing that here.”Gypsy Rose Blanchard soaks up the sun in vacation snaps after drastic weight loss transformationAs more restaurants experiment with eliminating tips, the idea of a no-tip dining model is gaining traction — but not without resistance from some industry professionals."Diners have broadly lost patience with mandatory fees and surcharges being added to their bill at the end of the meal," Joseph Magidow, chef and owner of La Cigale in San Francisco, said.Instead, Magidow said his restaurant builds labor costs directly into menu prices, creating what he describes as a more transparent experience.Derek Simms, who operates multiple restaurants in Frisco, Texas, said he believes the traditional tipping system works — particularly for servers, who can average $40 to $60 per hour.Simms, who worked in California before moving to Texas, said eliminating tips would force restaurants to raise wages in a way that most business models can't sustain. Stream It Or Skip It: 'The Forsytes' on PBS, a Bold New Take on a 'Masterpiece' Classic for the 'Bridgerton' Era

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