+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

You shouldn't feel obligated to tip when ordering a coffee or takeout, says Shake Shack founder

Jul 8, 2023, 17:26 IST
Business Insider
Shake Shack founder Danny Meyer said customers shouldn't feel an obligation to tip for takeout or coffee orders.Getty Images
  • Shake Shack's founder told CNBC that customers shouldn't feel obligated to tip on takeout orders.
  • Last year, Shake Shack added the option to tip at all its locations.
Advertisement

Shake Shack founder Danny Meyer weighed in on the debate about tipping in the US on CNBC's "Squawk Box" this Thursday.

Meyer said customers shouldn't feel obliged to tip when ordering takeout or coffee from a restaurant.

"If you're just taking out food, and it was just a transaction, I give you money, you give me a cup of coffee – I don't think there's any obligation to tip," he said.

This isn't the first time Meyer has vocalized his disapproval of America's tipping culture, which has become a hot debate on social media in recent months.

In 2015, Meyer banned tipping at all of his Union Square Hospitality Group restaurants and raised prices on his menu in what he said was an attempt to give employees fairer wages. This decision was reversed after the COVID-19 pandemic when its restaurants began reopening and rehiring. Meyer founded Union Square Hospitality Group, and while the group doesn't oversee Shake Shack, it does manage many restaurants in New York City.

Advertisement

In 2017, Meyer told podcast "The Sporkful," that tipping was "one of the biggest hoaxes pulled on an entire culture." He said that tipping was established after the abolition of slavery so that businesses wouldn't have to pay workers. This mostly affected employees in the service industry, who were predominantly Black.

According to CNBC, many restaurants use point-of-sale systems like Square and Toast where customers are prompted to tip – either on a tablet or the card reader. This sometimes causes confusion about how much to tip or frustration as patrons feel they have been overcharged.

Tipped employees like servers are usually paid less than the standard minimum wage. According to the US Department of Labor, the federal minimum wage is $7.25, but for employees who make tips, it's $2.13 an hour. During the 2020 presidential race, President Joe Biden promised to ban the tipped wage.

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article