Trending Now - Restaurant Owners Express Concerns Over Dining Experience Decline
WHO:
Derek Simms, CEO of Simms Hospitality Group
Joseph Magidow, chef and owner of La Cigale
Michelle Korsmo, president and CEO of the National Restaurant Association
Vicki Parmelee, owner of Jumby Bay Island Grill
WHAT:
Some restaurants are experimenting with eliminating tips, leading to a no-tip dining model.
La Cigale restaurant in San Francisco has adopted a no-tip model.
Tipped servers earn a median of $27 per hour, according to the National Restaurant Association.
Servers can average $40 to $60 per hour in tips, as stated by Derek Simms.
The no-tip model aims to create a more transparent pricing experience for diners.
WHERE:
La Cigale restaurant is located in San Francisco, California.
Simms Hospitality Group operates in Frisco, Texas.
Jumby Bay Island Grill is located in Jupiter, Florida.
WHEN:
La Cigale restaurant opened in 2025.
The articles were published on March 23rd, 2026.
WHY:
The shift to a no-tip model is a response to growing frustration among diners over hidden fees and inflated gratuities.
Joseph Magidow stated that diners have lost patience with mandatory fees and surcharges.
The no-tip model aims to address income instability among workers.
HOW:
La Cigale incorporates labor costs directly into menu prices to avoid hidden fees.
Derek Simms argues that eliminating tips would force restaurants to raise wages unsustainably, leading to potential closures.
Simms believes that the traditional tipping system incentivizes servers to provide better service.
(UPDATED March 23, 2026 17:57 UTC)
In a significant shift within the dining industry, some restaurants, including La Cigale in San Francisco, are experimenting with a no-tip model to create a more transparent pricing experience for diners. This change comes in response to growing frustration over hidden fees and mandatory surcharges, with industry leaders like Joseph Magidow emphasizing that diners have lost patience with these practices. While tipped servers currently earn a median of $27 per hour, Derek Simms warns that eliminating tips could lead to unsustainable wage increases and potential restaurant closures.