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Unlike most in rich countries, American restaurant servers depend primarily on tips for their income. You might not know “dynamic pricing” by name, but if you’ve ever booked a flight, hotel room, or gone to the movies on a Tuesday, you understand it intrinsically: Dynamic pricing is when the price of goods or services fluctuates based on demand. “When confronted with dynamic pricing, customers react negatively,” a 2022 study said . In late 2023, after 35 years, Bayless decided to try dynamic pricing, raising the dinner menu on weekends from $165 to $185. Nick Kokonas, who cofounded Toast, also uses dynamic pricing at his Chicago restaurants.
Persons: Toast, they’re, Tipping, Michael Lynn, Zachary Brewster, Lynn, L’Oca, , ” Adam Orman, we’ve, haven’t, Crudo, you’ve, Sherri Kimes, Rick Bayless, Bayless, It's, ” Bayless, , Roger Yang, Nick Kokonas, Ari Weinzweig, ” Weinzweig, Yang, Corey Mintz Organizations: National Restaurant Association, Bureau of Labor Statistics, waitstaff, Cornell University, , Michelin Locations: America, Italian, Austin, Angeles, Chicago, Toronto, Ann Arbor , Michigan
Opinion: Restaurants should end tipping for good
  + stars: | 2023-10-24 | by ( Opinion Corey Mintz | ) edition.cnn.com   time to read: +6 min
The Wall Street Journal described this as Chicago eliminating the “tips-as-wage system,” which makes it sound like a ban on tipping. It’s a shame, because tipping has always been a scam that enables restaurants to suppress labor costs, which keeps menu prices down. Tipping emerged as a model for employing formerly enslaved Black workers without having to pay them a real wage, if anything at all. Instead, restaurants should pay a living wage (if the revenue does not cover the actual cost of labor, what kind of business is it? Despite today’s dire labor shortage, precious few restaurants seem willing to re-examine their employment model in order to address it.
Persons: Corey Mintz, CNN — It’s, Jaime Hogge, Steve Hanke, Nick Kokonas, ” Kokonas, , Tipping, North America wouldn’t, Organizations: Public Affairs, CNN, Twitter, Chicago Locations: Chicago, Toronto , Ontario, North America
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