Utah restaurant requests ‘no tips’ from customers in new business model

A Utah restaurant recently announced that they are asking customers to not tip as part of a new business model.

Mario Trejo in Logan, Utah is requesting that their customers no longer tip the employees. Restaurants who implement this model are upping their wages for employees, but also raising the prices of their menu items.

Jonathan Horowitz, President of Houston Hospitality Alliance and Founder & CEO of Convive Hospitality Consulting, told KTRH News that ways to tip are increasing and being seen by customers more often when they go out.

"Tipping right now is a big topic within the industry primarily because the cost of doing business in the restaurant industry has gone up so dramatically," said Horowitz.

Rising costs include with labor, materials and rent. Tack on inflation and costs are much higher. The economic state of the country has created this shift in some restaurants and businesses looking more into seeking tips in additional ways from their customers.

Although, Horowitz said this 'not tip' model has not been very successful on previous tries.

"So far, in this country, that really has not worked," he said, citing tipping as more of a cultural thing. "We really have not seen any restaurant be really successful with a no tipping model."

Tipping is also seen more as a reward for the employee for their work. Horowitz said there's been a pushback by many people on tipping becoming more of a common practice because sometimes they feel forced into it.

So, will not tipping become more of a normal practice by Americans?

"It would take generational shifts if we were ever going to be able to do that," said Horowitz.

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