Restaurant Asks Patrons Not to Tip Waiters

What's Hot

Do This or Your iPhone Bill May SkyrocketSave

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

11 Places in the World Where You Can Afford to Retire in StyleMore

What You Need to Know for 2017 Obamacare EnrollmentFamily

8 Things Rich People Buy That Make Them Look DumbAround The House

32 of the Highest-Paid American SpeakersMake

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

More Caffeine Means Less Dementia for WomenFamily

9 Tips to Ensure You’ll Have Enough to RetireFamily

30 Awesome Things to Do in RetirementCollege

5 Spots Where Retirees Can Live for Less Than $40,000Real Estate

10 Ways to Reduce Your Homeowner’s Insurance RatesFamily

10 Ways to Pull Together the Down Payment for a HomeCredit & Debt

Chew on This: The Story Behind Your Hershey’s Halloween TreatsBusiness

A New York sushi restaurant pays its waitstaff a salary — with benefits — and tells customers that tips are not allowed. Should other restaurants follow suit?

The minimum wage for waitstaff has been stuck at $2.13 for 22 years.

In theory, employers are required to make up the difference between that and the non-tipped minimum wage ($7.25 unless states specify a higher one) if their tips don’t do it. But that doesn’t always happen.

Sushi Yasuda in Manhattan makes sure waitstaff are properly compensated, The New York Times says. It pays salaries and benefits to staffers and doesn’t permit them to receive tips.

In the past, the restaurant didn’t encourage tips but allowed people to give them, the Times says. But that money didn’t go to workers; it went to the restaurant.

Now the restaurant has a no-tipping policy, laid out on menus and receipts. It says: “Following the custom in Japan, Sushi Yasuda’s service staff are fully compensated by their salary. Therefore gratuities are not accepted. Thank you.” (Gawker posted a photo of one receipt.) The receipts don’t even have a designated space for tips.

When the upscale restaurant banned tips, it also raised prices by 15 percent.

Meanwhile, the ban confuses customers, some of whom leave a tip on the table anyway.

What do you think? Is this fair to customers and employees? Would you be more likely to dine at a restaurant that marked prices up 15 percent if you knew they were treating employees well? Many people tip more than 15 percent anyway, right?

Share your thoughts on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 7 Ways to Save More at Big Lots

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,688 more deals!