Banning tips in favor of a flat 18% surcharge to be distributed among servers is the plan of a brew pub in Glens Falls. It is said to be a reaction to the fiddy percent hike in the minimum server wage. If it's distributed evenly, how is that done. Pro rata based on hours worked ? Of course, people will still pass dollars to staff, so how is that taken into account ? Well, it isn't as cash is king.
Now there is likely customer blowback to the surcharge notion.
You could raise prices, pay $15 and ban tipping, but the tip entitlement culture in so ingrained, it would be hard to hold on to workers. Would the surcharge be subject to sales tax...Would the redistribution be subject to FICA on both ends.
Then again it depends on how sensitive your clientele is to a price hike. Lot to think about before changing the paradigm.
avidson Brothers bans tipping; take a poll - Table Hopping