While some restaurant chains are trying to make it easier for customers to tip by offering the option to tip digitally, others prefer a "no tip" policy at their restaurants
According to CNBC News, Noodles & Co. CEO and chairman Kevin Reddy is taking tipping out of the equation with a new policy that says "no" to the ubiquitous tip. The CEO believes that "respect doesn't cost you anything," and he expects his employees to treat customers with respect for coming to the eatery and not because they want a tip.
"Being nice doesn't cost you anything, and we don't really feel that folks should have to pay something additional for us to appreciate that they're choosing us over another restaurant," Reddy told CNBC.
Reddy added: "Either you enjoy people, and you treat them right, or you don't. You're either genuine, truthful and nice, or you're not. If you would throw somebody under the bus to get ahead, nobody wants to work with you. You're not going to make it in our culture."
The Colorado-based chain has reportedly been successful with its new business model, Reddy said. The fast-casual restaurant that specializes in international and American noodle dishes reportedly pays workers above minimum wage, but Reddy did not disclose the payroll numbers.
The company has 380 locations in 29 states, and in Washington, D.C., that follow the no-tip policy. An average meal will cost about $8, which is higher than fast food giants like McDonald's or Wendy's, but lower than casual dining chains like Darden Restaurants' Olive Garden and Applebee's.
"We don't want our guests to feel we're trying to upsell them," Reddy said. "We'd rather have them feel we'd rather upserve them than upsell them. That's why we're really cautious even about the price increases we pass on."
Reddy, who is a former executive at Chipotle Mexican Grill Inc. and McDonald's Corp., added: "You can get in and out of our restaurants for 25 percent less than a Chili's or an Applebee's. Our prices are lower to begin with, and you don't have to put a 15 percent to 20 percent tip on it."
Would you still tip your server with a "no-tipping" policy?
