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Union Square Hospitality Group Eliminates Tipping Throughout All Restaurants, Provides Equal Compensation for Employees

Oct 15, 2015 03:12 AM EDT | By Jean-Claude Arnobit

Danny Meyer, the CEO of Union Square Hospitality Group, said in a letter published by Union Square that the company will be eliminating tipping throughout all of the company's family of restaurants.

This move allows Union Square to equally, competitively, and professionally compensate all of their employees.

Meyer said in the letter that the practice of tipping has been a major obstacle to the company's plan of providing meaningful career opportunities and advancement to their 1,800 employees.

"We believe hospitality is a team sport, and that it takes an entire team to provide you with the experiences you have come to expect from us," he said. "Unfortunately, many of our colleagues - our cooks, reservationists, and dishwashers to name a few - aren't able to share in our guests' generosity, even though their contributions are just as vital to the outcome of your experience at one of our restaurants."

Meyer adds in the letter that the elimination of tipping will start at The Modern in November, where customers will no longer find a tipping line on their check.

Union Square's other restaurants in New York will follow the changes over the course of the next year.

The New York Times adds that the move will affect restaurants in New York City that serve 40,000 to 50,000 meals a week.

These restaurants range from simple museum cafés to some of the most popular and acclaimed restaurants in the U.S.

The New York Times adds that this move is not new as a small number of restaurants have already reduced or eliminated tipping in the last several years.

Restaurants like Atelier Crenn has put a surcharge on their bill to allow the restaurant to set the pay for all employees while Bruno Pizza has factored the cost of an hourly wage for servers into their menu prices.

Meyer adds in the letter that the implemented changes won't affect too much the total cost that customers pay to dine in their restaurants.

It does affect their team significantly as they can now compensate all employees equally and allow for professional and financial growth based on the merit of their work.

Meyer adds in the letter that they are entertaining thoughts and feedbacks at HospitalityIncluded@ushgnyc.com. 

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