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

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.
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."
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.