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Filoxenia: Nerai Joins Top New York Restaurants to Eliminate Tipping

May 3, 2016

Nerai is proud to announce its decision to join the growing number of fine dining establishments in moving away from the low wage, tip-based wage system that creates inequality. All Nerai customers now see a flat check with no additional gratuity required. This has been titled Filoxenia, which loosely translates to “hospitality.”

The cost of each meal is the same as it would be if paid with a set amount for the food and a separate amount for service, says owner Spiro Menegatos. “We believe in offering the same fine dining experience without changing how your food is prepared or delivered, nor how your table is served.”

The system is designed to ensure every employee of the restaurant makes a fair wage, from the chefs in the kitchen to the busboys. Instead of an inequitable tipping system that is open to abuse and leaves certain employees out of the loop, restaurateurs are finding that a no-tipping model satisfies both customers and employees in every capacity.

“With the no-tipping system, diners know that the restaurant is taking an active role in ensuring server excellence,” says Mr. Menegatos. “Each server will be answerable to management, not the customer, for their quality of service. They will also be compensated fairly without having to worry about the range of tipping. This ensures that our servers and all other staff have the security of a reliable income, and that our customers get consistent, excellent service at every visit.”

The no-tipping system has already been successfully implemented by a host of high end restaurants in the NYC area. In every instance, employee turnover stabilizes, employee satisfaction rises, and customers report no impact on the overall cost of their fine meal.
Customers will still be able to offer input, according to Mengatos; there will be a 5 Star ranking system on the bottom of each check so that guests can leave feedback. Servers that receive substandard scores will be coached to offer a better guest experience.

“It’s a socially responsible, economically significant, and ethically sound way to operate,” Menegatos concludes. “We are happily joining the revolution of fine dining, and know both our customers and our employees will benefit from the change. No-tipping is the future of the industry, and we hope more restaurateurs will follow our lead in ensuring top shelf service and wage equity for their employees.”

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