# Why Some US Restaurants Are Eliminating Tipping Experiences of restaurants adopting no-tip models with higher wages. - **Source:** [Hacker News: Front Page](https://brifing.si/source/b07aa772-b1a0-4a76-aa18-719c6f9e2dde) - **Published:** 2026-08-25 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/0bd66b34-8d1e-474d-a2b8-015a23cee4b8 ## The rise of no-tip models Upscale US restaurants like La Cigale are eliminating tips with 'what you see is what you pay' policies. Employees receive $40/hour wages—double the industry average. However, this model requires fixed prices of $140 per person. Customers are only expected to provide positive feedback and repeat visits instead of tips. ## Solution to unequal income distribution Nightshade Noodle Bar's chef Rachel Miller switched models five years ago after noticing kitchen staff earned significantly less than front-of-house teams. She also observed white male staff receiving higher tips. To eliminate income disparities based on gender, race or sexuality, she raised prices at her French-Vietnamese restaurant. ## Customer resistance and tax implications Cambridge's Talulla restaurant removed tipping in 2020 but reinstated it in 2023. Despite increasing menu prices by 23%, they only survived through winter months. No-tip models increase sales tax burdens since tips aren't counted as revenue while higher menu prices expand the tax base. ## Consumer psychology barrier Cornell's Prof. William Lynn notes customers struggle to comprehend no-tip pricing. When people don't account for eliminated tips, higher menu prices make dining out seem more expensive. This perception reduces demand and creates business risks for restaurants attempting the transition. ## Improved employee satisfaction New York's Dirt Candy was among the first to eliminate tipping in 2015. Chef Amanda Cohen pays staff $30/hour and observes many customers are pleasantly surprised about skipping 20% tips. Oakland restaurant worker Cassidy Van der Kamp emphasizes how fixed wages provided financial stability absent in tipped positions. ## Reduced staff turnover Nightshade Noodle Bar saw significantly lower turnover compared to industry averages. Rachel Miller states, 'Turnover is brutal in this industry, but we've kept the same team since the change.' The fixed-wage model has proven valuable to both employees and customers. ## Tipping fatigue phenomenon So-called 'tipping fatigue' is growing in the US as customers become increasingly frustrated with higher expected tips. However, experts believe the economic disadvantages of completely eliminating tips outweigh the benefits. Prof. Lynn doesn't anticipate widespread disappearance of tipping culture. ## Lessons for the industry No-tip models succeed depending on location, target audience and pricing strategy. Upscale establishments catering to high-income customers transition more successfully. For mid-market restaurants, customer resistance and tax effects pose significant barriers. As the search for fair compensation continues, each business must find its sustainable model. ## Sources covering this story - https://www.bbc.com/news/articles/c4g36yze692o — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._