Cashless Solutions and Service Charges: New Trends in Tipping

Restaurants around the U.S. are moving away from traditional tipping structures and instead selling tickets for dinners or using flat service charges.

While these new approaches create greater parity among restaurant employees and greater certainty for diners, they can also bring down pay for servers. Digital payment methods like Square allow for tipping without cash in settings where it would once have been required. And ubiquitous ridesharing companies Uber and Lyft are split on whether passengers should tip drivers in their apps.

Joining host Phil Ponce to discuss trends in tipping is Tim Classen, associate professor of economics at Loyola University's Quinlan School of Business.


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