Tipping and inequality.  Danny Meyer, a premier New York restauranteur is abandoning tipping.  He will put a flat 20% on bills.

Danny Meyee owns 13 restaurants including The Modern, said the tipping system was unfair as it only benefited a few restaurant workers.

Waiting staff in the US typically receive most of their wages in tips, but cooks and other workers do not.

Mr Meyer plans to start the policy at four of his restaurants next month.

“We believe hospitality is a team sport, and that it takes an entire team to provide you with the experiences you have come to expect from us,” Mr Meyer said in a statement.

Menu prices will increase 25% to 35% to account for the changes.

Restaurants in the US are rethinking how they compensate their employees for a number of reasons.

In major US cities like New York, Chicago and San Francisco, restaurants are finding it hard to retain kitchen staff as the cost of living in those areas increases.

Because of tips (typically 20% of each bill), servers sometimes end up earning much more than highly skilled cooks.

Restaurant workers across the US have also been lobbying for better wages in recent years. New York City and other cities and states have increased their minimum wage in response.

Some high-end restaurants in the US have already stopped accepting tips, but Mr Meyer’s empire is the most prominent restaurant group to date to embrace the move.

Melissa Fleischut, president and CEO of the New York State Restaurant Association, said Mr Meyer’s decision could have a ripple effect in the industry.

“I think that because it is Danny Meyer and he is considered a leader in the restaurant industry, that a lot of people are going to look at this move,” she said.