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San Francisco Restaurant Eliminates Taxes and Tips

May 21 2009 - 3:00pm

Earlier this year, we broached the question of whether it was fair for establishments to impose a built-in surcharge for large dinner parties [1] — and many of you were strongly opposed. But how would you feel if taxes and gratuities were eliminated altogether?

Frank Klein, owner of San Francisco's Fish & Farm [2], thinks the idea has potential to succeed in times like these [3]. According to San Francisco Chronicle restaurant critic Michael Bauer, Klein will remodel Fish & Farm, reopening with a new menu that has all-inclusive prices [4].

The restaurant's new tabs will have "no surcharges, no extras, no nothing above what it says on the menu. We are going to become the anti-surcharge restaurant." The waitstaff will still be adequately compensated because the computer will automatically deduct sales tax and 18.5 percent gratuity for every check.

Although this isn't a new concept — it's standard in many countries like France — it's uncommon to see in America. At a time when many Americans feel nickel-and-dimed, does this strategy have the potential to succeed — and catch on in other restaurants?

Source [5]


Source URL:
http://www.yumsugar.com/3178054