Danny Meyer was one of the first restauranteurs to announce the elimination of tips at his establishments. The 'Hospitality Included' trend has been gradually picked up by other owners and operators in the industry as well.
Although restaurants are trying to change the status quo, diners seem to still prefer the standard practice of leaving gratuity.
Recently, Horizon Media surveyed 3,000 people about tipping. The study found that 81% of restaurant patrons aren't ready to forgo the "established" practice of tipping. Responders said that they preferred having the choice to tip based on the quality of service provided. They weren't very fond of the gratuity-included idea, which they believed would lead to poor service.
However, results showed that younger people were actually more accepting of the new trend. 29% of people ranging from the ages of 18 to 34 thought tipping was dated, as compared to 13% of those aged between 50 to 64.
The remaining 20% claimed to be supportive of the change. 34% said they would pay up to an additional 15% per dish. 10% percent were a little more generous and said that 18 to 25% would be a reasonable amount.
Kirk Olson of TrendSights at Horizon Media said younger diners were more welcoming of the change because they understand the challenges of financial burden. He said, "Many Millennials still face underemployment and Gen Z-ers who've begun working are often working service jobs dependent on tips. Considering the rising popularity of Bernie Sanders's 'living wage' stance among the same group, it makes perfect sense that they show greater interest in seeing tipping evolve."
Olson mentioned how millennials are more aware that tipping is no longer accepted in other parts of the world, like in Europe. They think that restaurants with service included into the prices of meals would just be a better practice in the US.