Restaurant Tip Ban: NYC Sushi Restaurant Pays Staff Salary

June 10, 2013 Updated: July 18, 2015

A Japanese restaurant in New York City placed a ban on tipping and instead, its owners have opted to pay workers a salary with paid vacation and sick leave.

Sushi Yasuda co-founder Scott Rosenberg said that when customers realize they don’t have to pay a tip, they are usually pleased.

“One [young guy] said, ‘I’m going to eat 20 percent more sushi,” Rosenberg told ABC News.

“The diner doesn’t [have to] think about how much to leave and make calculations [after] a contemplative and special meal,” he said, adding that taking tips out of the equation enhances the customer’s experience.

He said, “We’re really sort of just staying connected to that classical approach [of fine Japanese dining].”

Rosenberg told The Price Hike website that there’s no line on the receipt to write a tip.

“I’ve always dreamed…wouldn’t it be great not to have to worry about tipping?” Rosenberg told the site. “Look at your bill, make sure that it’s correct and sign the check if you’re good, and you won’t have think and calculate and do a math equation at the table.”

Daisy Chung, head of Restaurant Opportunities Center of New York, told ABC that paying restaurant workers salaries is a good idea.

“We definitely feel there shouldn’t be a separate system where tip workers rely on tips to subsidize their wages,” Chung said. “Workers should be fully compensated.”

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