Business Shake Shack founder tips for to-go orders

Shake Shack founder tips for to-go orders

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Famous restaurateur and Shack Shack founder Danny Meyer believes customers shouldn’t have to tip for takeout orders.

“If you’re just picking up food, and it was just a transaction — I’ll give you money, you give me a cup of coffee — I don’t think there’s any obligation to tip,” Meyer said in an interview on CNBCs Squawk Box.

Meyer was responding to a question about the proliferation of point-of-sale devices from companies like Square and Toast, which allow customers to tip staff between 15% and 25%. In many cases, the devices have replaced the ubiquitous tip jar.

But these public displays of satisfaction have led many people to feel social pressure to tip — even if they don’t want to.

A survey from June 2023 software company Capterra found that about half of consumers feel manipulated into tipping on a tablet at a point of sale during checkout.

When Starbucks introduced digital tips earlier this year, many customers took to social media to complain.

Related: More Businesses Are Asking Customers For Tips — Should You? Don’t Make These 5 “Guilt” Mistakes.

Meyer’s has changed its stance on tipping

Meyer is the founder and CEO of the Union Square Hospitality Group (USHG), which runs high-end restaurants such as the Union Square Cafe and Gramercy Tavern, and the fast-casual chains Daily Provisions and Shake Shack.

In 2015, he eliminated tipping in its restaurants by adding a “hospitality” fee to all bills. The idea was to raise wages for junior restaurant managers, cooks, dishwashers and other kitchen staff.

But Covid changed everything, he said on Squawk Box. When customers returned to restaurants, they wanted to show their gratitude by tipping.

“It was inhumane to tell our servers that you might not accept that expression of gratitude,” Meyer explains. “So we scrapped it [the no-gratuities policy].”

In 2020, USHG allowed customers to tip again and began using point-of-service systems to collect the money. Meyer added that his restaurants still give a percentage of their earnings to kitchen staff each night so they do as well as the servers on busy evenings.

When asked what is the right amount to tip, Meyer said 20%.

“I think people appreciate warm hospitality. They appreciate the feeling of being on their side, and they like to reward it. They don’t like being forced.”

Shreya Christinahttp://ukbusinessupdates.com
Shreya has been with ukbusinessupdates.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider ukbusinessupdates.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

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