A number of American restaurants are experimenting with a no-tipping policy as the sector looks to handle rising labour costs. It is being considered as restaurants prepare to see the introduction of minimum wage proposals in some major cities. A number of restaurants have lifted their prices by up to 21 percent and ended tipping in response to the first stage of a $15 an hour minimum wage law that took effect earlier in the year.
It was felt there was an inequity in that kitchen staff were paid around half as much as front of house staff whose wages were boosted by individual direct tipping. Tipping in the US is now ingrained and while some restaurants have a no-tipping policy, it mainly occurs among higher priced restaurants.