No‑tip models draw fresh pushback
Restaurant owners and analysts warned this week that no‑tip experiments can degrade service and erode incentives that drive high‑touch hospitality in fine dining. (foxnews.com)
Oakland soul‑food restaurant Burdell has operated with a mandatory 20% service charge intended to fund staff wages and benefits since its popup launch in 2022. (sfgate.com). (sfgate.com) The Burdell policy ignited a viral Reddit post that escalated into racist emails and violent threats against chef‑owner Geoff Davis, with critics labeling the fee a “20% racism fee” in social‑media posts. (kost1035.iheart.com). (kost1035.iheart.com) A September 2025 Popmenu survey of 1,000 U.S. consumers found 65% said they were “fed up” with tipping (up from 53% in 2023), and roughly two‑thirds reported feeling pressured to tip by digital payment prompts. (prnewswire.com). (prnewswire.com) High‑profile no‑tip experiments have frequently reversed: Union Square Hospitality Group announced it would allow tipping again as dine‑in reopened in July 2020 after running its “Hospitality Included” model for years. (restaurantdive.com). (restaurantdive.com) Eleven Madison Park removed its service‑included pricing and reinstated tipping in January 2022 after originally raising menu prices by about 30% when it first adopted a no‑tipping model. (eater.com). (ny.eater.com) Payments data tracked during 2025 showed declines in average tip rates—Square reported digital food‑and‑beverage tips around 14.9% in Q2 2025 while Toast recorded full‑service restaurant tips near 19.1%—figures industry operators cite when weighing service charges versus traditional tipping. (wheninyourstate.com). (wheninyourstate.com)
