Why tipping is bad for restaurants and ‘all-in’ pricing is the most honest solution
LA TimesThe custom of tipping at restaurants could be on the way out. For many reasons, we seem unable to accept that the bill at the end of the meal reflects the true and total cost of our dining experience — which includes not only the rising cost of labor, but the rising costs of food and Los Angeles real estate. SIGN UP for Jonathan Gold’s Counter Intelligence dining newsletter >> Once the $15 minimum wage goes into effect, the difference in pay between front of the house and back of the house employees will widen as tipping is added into the servers’ wages. Currently we’re seeing some creative restaurateurs experiment with line items on bills that cover health insurance or a bit extra to the kitchen, or 20% service charges — and some diners are freaking out. In lower-end diners and small family restaurants, front and back of the house equity may be less of an issue because employee compensation is similar, but in the casual-upscale dining market that’s booming now in Los Angeles, it’s huge.
History of this topic
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