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Why Restaurant Tipping Is Moving to Service Fees
Lucas and Luna explore the growing trend of restaurants replacing traditional tipping with service-included pricing or automatic service fees. They examine real-world cases like Union Square Hospitality Group and Thomas Keller's restaurants, discuss the legal landscape in 2026, and break down the economics for both operators and diners. The episode offers concrete data on how service fees affect check averages, staff compensation, and customer retention, and considers whether the no-tipping model can survive outside fine dining.
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The skinny
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