Richmond Station, a popular Toronto-based restaurant, recently announced that it has eliminated tipping in favor of a "hospitality included" approach. The new approach was designed to ensure a more equal pay model for those working in the service industry.
In an online letter to their customers, owners Ryan Donovan and Carl Heinrich stated: "The onset of the COVID-19 pandemic and the ensuing financial aid packages offered by the federal government, have exposed an enduring gap between workers with fully insured wages and benefits from those employees working in industries entrenched in tipping culture, where cash disbursements are standard forms of incentive and compensation."
The new hospitality included approach does mean higher menu prices, however, customers can now pay for their full bill upfront, with the cost of their meal calculated in real-time.
Hospitality-Included Canadian Restaurants
Toronto Restaurant Richmond Station Eliminated Tipping
Trend Themes
1. Hospitality-included Approach - Restaurants are eliminating tipping in favor of 'hospitality included' approach, which can help establish a more equal pay model for service industry workers.
2. Real-time Calculations - Thanks to a hospitality included approach, customers can now pay for their full bill upfront, with the cost of their meal calculated in real-time.
3. COVID-19 Impact on Tipping Culture - The COVID-19 pandemic has shone a spotlight on the enduring gap between workers with fully insured wages and those working in the service industry entrenched in tipping culture, spurring hospitality included approaches.
Industry Implications
1. Food and Beverage - The food and beverage industry can benefit from a hospitality included approach that establishes a more equitable pay model for service industry workers and streamlines the payment process for customers with real-time bill calculations.
2. Hospitality - The hospitality industry can adopt a hospitality included approach, eliminating tipping, to promote more equal pay among service industry workers while enhancing customer service and convenience.
3. Retail - Retail businesses, especially those with service-heavy operations, can embrace a hospitality included approach that eliminates tipping, to provide fairer and transparent compensation packages for workers.