Observations From A Tipless Restaurant

We found this to be a very interesting first person perspective. Things are not what they seem in tipville:

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4) Our ability to make sure team members in all parts of the house were taken care of, and to remove tip-related squabbling from our business, gave us a huge competitive advantage in the marketplace; this in turn allowed us to serve a much higher quality of food and take lower margins on it. Basically, it was because of the much-lower-friction monetary flow through the company that we were able to survive as a true, deep farm-to-table restaurant in San Diego for so many years. Other operators in town, fully aware of how tips poison restaurants, knew we were enjoying an edge. Some of colleagues resented this, and lashed out in some ways, including that of telling local journalists and bloggers that we were lying about the food we were serving. I assume that this is because those restaurants couldn’t serve the kind of food we did and still take tips, because tips are so wasteful. And if they couldn’t do it, than they assumed/said we weren’t doing it.