Restaurant And Hospitality News – October 19, 2015
By Christine Kern, contributing writer
In news this week, Union Square Hospitality Group moves to eliminate tipping, TripAdvisor adds a new free analytics program that provides insights for hospitality, and Starbucks launches delivery to the Empire State Building.
Union Square Hospitality Group Aims For Equitable Pay, Not Tipping, For Staff
According to the Nation’s Restaurant News, Union Square Hospitality Group in New York City has announced that it plans to phase out tipping in all of its 13 full-service restaurants in favor of more equitable pay for its staff. This will mean raising menu prices, said founder and chief executive Danny Meyer. He explained that tipping served as an obstacle in the company’s efforts to “provide even more meaningful career opportunities and advancement for our 1,800 employees.” He stated, “There are countless laws and regulations that determine which positions in a restaurant may, and may not share in gratuities,” he wrote. “We believe hospitality is a team sport, and that it takes an entire team to provide you with the experiences you have come to expect from us. Unfortunately, many of our colleagues — our cooks, reservationists, and dishwashers to name a few — aren’t able to share in our guests’ generosity, even though their contributions are just as vital to the outcome of your experience at one of our restaurants.” USHG is the first large restaurant company to implement a “Hospitality Included,” policy across the board. That includes removing the “tip” line from guest checks. When asked how much prices might increase, Meyer didn’t commit to a figure, but in an interview with eater.com, Meyer indicated it might be more than the 15 percent to 20 percent that would make up for not having to tip, saying that other costs such as soon-to-be-implemented city and state wage increases could also be taken into account. In a statement, labor group Restaurant Opportunities Center United co-director and co-founder Saru Jayaraman said the move “Sets a powerful example for New York restaurants and beyond. ROC applauds efforts by all restaurant employers to explore wage structures that aim to pay employees a fair, stable base wage, helping to mitigate the problematic system that is inherent in the tipping model.”
TripAdvisor Launches Free Analytics Program For Registered Businesses
TripAdvisor has launched a new analytics program, the Review Performance report, which is available at no cost to all registered businesses on the site. This enhanced online analytics dashboard is designed to provide insights and trend data about reviews, ranking, and competitors in an interactive online display to help businesses easily monitor and maximize their presence on TripAdvisor. The program allows businesses to see how travelers are engaging with their TripAdvisor listings. This program now allows restaurant and attraction businesses to track their performance against competitors; previous analytics only allowed accommodation providers access to such comparisons. “According to the recent research conducted by Atmosphere Research Group in partnership with TripAdvisor, highly engaged businesses get more visibility, have higher popularity rankings and receive more booking enquiries through TripAdvisor. In fact, highly engaged hotels receive almost four times more page views and are on average 63 percent higher in popularity ranking than non-engaged hotels,” explained Minesh Shah, senior director, global hotel partnerships, TripAdvisor. “The Review Performance Report has been designed to make it easier for businesses to engage with their TripAdvisor listing and their guest feedback. What makes this new dashboard so valuable for registered business owners is that it automatically aggregates performance trends and presents them in an easy-to-digest display, placing valuable learnings at their fingertips to help drive engagement and optimize their presence on TripAdvisor.” Registered business owners can access the Review Performance report through the Management Centre and hospitality businesses can register for free.
Starbucks Launches Delivery Service In Empire State Building
Recently, Starbucks began coffee and food delivery service to the 12,000 employees who work in New York City’s Empire State Building. The service allows them to place orders online and have their choices delivered in 30 minutes or less. The service is called Green Apron Delivery, and it is “designed for a dense urban environment,” according to a Starbucks news release. “New York City has always inspired us to consider new ways to innovate for our growing store portfolio and I cannot think of a better location to launch one of the most frequently requested services,” explained Cliff Burrows, group president, U.S. and Americas. “With Starbucks Green Apron Delivery, we’ve simply moved that moment of connection between our customer and the barista from our place to theirs.” There is a flat $2 delivery charge, and orders are limited to 15 items or fewer. Tipping is not allowed, and orders will be delivered to a selected, central drop off area, like reception desks. Customers must first enroll in Starbuck’s loyalty program before being able to place online orders. “My team is so proud to be the first Starbucks baristas to be delivering our products to customers outside our stores,” said Brian Murphy, store manager. “It is a historic moment for the company and after all the planning and practice; it’s now time to bring Starbucks Green Apron Delivery to life.”