U.S. eateries experiment with no-tip policies, raising menu prices to fund higher wages
Several American restaurants have eliminated tipping, opting to increase menu prices to pay staff higher hourly wages, with mixed results.
La Cigale in San Francisco pays wine waiter Caroline Kraetzer $40 an hour and sets a $140 per-person price, explicitly banning tips and telling guests that kind words and repeat visits are sufficient. Rachel Miller, chef-owner of Nightshade Noodle Bar in Lynn, Massachusetts, adopted a tip-free model after the pandemic to ensure kitchen staff receive a fair share, raising tasting-menu prices to £102 or $126 for larger courses.
Not all experiments have succeeded; Talulla in Cambridge, Massachusetts, tried a 23% price increase to replace tips but returned to the traditional model after winter losses. Cornell professor William Michael Lynn explains that diners often misinterpret higher menu prices as more expensive overall, reducing demand. Early adopters like New York’s Dirt Candy and a former Oakland restaurant report that servers enjoy predictable wages, though attracting tip-loving staff remains a challenge. The trend reflects growing “tipping fatigue,” but widespread elimination of tips appears unlikely due to economic trade-offs.
Why it matters
The shift challenges a long-standing U.S. dining norm, affecting workers' earnings and restaurant pricing strategies.
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