The restaurant business model is warped: kitchen wages are too low to hire cooks, while diners are put in charge of paying the waitstaff. So what happens if you eliminate tipping, raise menu prices, and redistribute the wealth? New York restaurant maverick Danny Meyer is about to find out.
Season 5, Episode 24
This hour of Freakonomics Radio is all about tipping. As we all know, the practice of tipping can be awkward, random, and confusing. What you might not know is that it is discriminatory, and according to at least one academic’s research, correlates with corruption. We talk with a professor who has written over 50 papers on the subject.
Then, we explore the warped restaurant business model: kitchen wages are too low to hire cooks, while diners are put in charge of paying the waitstaff. So what happens if you eliminate tipping, raise menu prices, and redistribute the wealth? New York restaurant maverick Danny Meyer is about to find out.
The restaurant business model is warped: kitchen wages are too low to hire cooks, while diners are put in charge of paying the waitstaff. So what happens if you eliminate tipping, raise menu prices, and redistribute the wealth? New York restaurant maverick Danny Meyer is about to find out.
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