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The History of Tipping in Restaurants: The Complicated Past, Present, and Future

7 Shifts

When you dine out at a restaurant, you tip your server. Its founder, George Pullman, hired newly liberated Southern black men as porters and servers. And Danny Meyer created the Hospitality Included service model, increasing menu prices to offset higher wages. White servers routinely make more than their nonwhite counterparts.

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We Deserve Free Sparkling Water

EATER

Sinzer also considers what ensures diners feel like the price tag equates to a full experience. “We At Claud, servers approach the tables with two carafes, showing the table the sparkling option isn’t something that will cost them. At Kann, servers say, “House-filtered sparkling water.”

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To Tip or Not to Tip

Modern Restaurant Management

A few restaurants have tried a tip-inclusive model, raising menu prices while also raising employees’ hourly wage and offering benefits. Even most servers don’t want to do away with tipping. The federal minimum wage at present is $7.25 If the server was exceptional, they received a tip of 15 percent or more.

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Your COVID-19 Survival Strategy: Now’s the Time to Maximize Profitability

Modern Restaurant Management

It’s easier for the front-of-the-house to present. That may mean that you need to adjust portion sizes or raise prices. You can keep your servers and provide traditional table service. You’ll need to work with your servers to make sure this happens, but remember this is about you and your profits.

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The Secrets to Successful Catering

Modern Restaurant Management

Offer a Fixed-Price Catering Menu Inclusive of Desserts The catering menu needs to be very clear on what is included in each package, and we try to wrap as much into those orders as possible. What we do is just include dessert with our catering and we build it right into the price. You have to stick to your prices.

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Menu Redesign Avoids Confusion and Promotes Optimization

Modern Restaurant Management

To reduce menu confusion and minimize price sensitivity, Ori’Zaba’s Scratch Mexican Grill recently rolled-out a rengineered and easier-to-read menu. The Ori’Zaba team told Modern Restaurant Management (MRM) magazine they watched people walk in and have a physical reaction to the three pricing tiers. Double Your Meat!”

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Restaurants Can Fight the Bite of Chargebacks (Infographic)

Modern Restaurant Management

Online ordering probably saved the restaurant industry, but salvation came at a price. Those payments were made in a card-present situation, though. The server or host was able to physically see and handle the guest’s payment card. No one was even eating in restaurants, let alone handing cash or a credit card to a server.

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