Last month in New York City, the famous Japanese restaurant Sushi Yasuda sent restaurant patrons and servers into a tizzy when it decided to stop accepting tips. Economists, like myself, have long wondered why people tip at all when they eat in a place they do not intend to visit again, or where they at least believe they will not be remembered when they return. The simplest answer is that tipping is expected and stiffing a server is generally considered to be the equivalent of stealing, thus it’s not really a voluntary payment.
- This Restaurant Banned Tipping And Made More Money (thinkprogress.org)
- Should Restaurants Ban Tips? (foxnews.com)