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The US restaurants adopting a no-tipping policy in favour of higher wages

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Riki has a no-tipping policy. Photo: AFP

In the US, diners are expected to add an extra 10 per cent to 20 per cent to their bill at the end of a meal. But some restaurants are now forgoing these tips.

Leaving a gratuity is de rigueur when dining out because pay for restaurant servers is so low. While the US federal minimum wage is US$7.25 an hour, wait staff can legally be paid as little as US$2.13 in some places. In New York, one of the most expensive US cities, salaries for waiters start at US$5 per hour.

For wait staff, tips help bolster pay to match other restaurant workers who don't receive gratuities.

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But there is a new trend: Riki Restaurant in New York is one of a number of establishments eliminating tips by taking the unusual step of paying their staff higher wages.

"Riki Restaurant is now a non-tipping establishment," read notices at the popular Japanese eatery. "Tipping is not required nor expected."

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The no-tip policy is being adopted especially by some upscale restaurants where clients are less price sensitive, says Michael Lynn, a professor at Cornell University's School of Hotel Administration.

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