Getting rid of tipping can be bad for business. Excerpts from Wall Street Journal article:
“A new study shows that when diners can’t tip, the effect can be lower online ratings and revenue” By Alina Dizik.
There’s a growing movement among restaurants to forbid tipping and instead raise wages so that earnings get spread more evenly among workers, among other reasons. But that policy may make the restaurants less appealing to customers, according to new research.
"People perceive the service is worse if there's no tipping," says Dr. Michael Lynn, Professor of food and beverage management of Cornell University School of Hotel Administration. Banning tips is linked to lower online reviews with in turn leads to lower revenue.