The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

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Friday, January 30, 2015

Strategic CSR - Tipping

The article in the url below outlines what sounds like a great idea:
"Imagine there's no tipping. By getting rid of gratuities, a few restaurants believe they'll make life easier for customers, while providing a more stable income to servers."
The restaurant featured in the article is doing this to put its customers at ease. In return the new French-style restaurant in Philadelphia:
"… intends to offer its staff up to $13 an hour in salary, plus health benefits, but with no tips."
The result is that servers get more stable incomes, while customers at other restaurants that have tried this say service improves:
"Menu prices might read a bit higher, but diners will know what they'll end up paying at meal's end — probably no more than they would have at an equivalent place where they'd tip."
Now the market will tell us whether customers think this is a good idea in Philadelphia, or whether they prefer to pay lower prices and control to what extent they reward/value the service they receive.
Have a good weekend
David Chandler & Bill Werther
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Customers Can Keep The Tip—Which Might Please Restaurant Workers
By Alan Greenblatt
October 9, 2014
National Public Radio