I’m the wine director of Marta Restaurant, and my question is what
do you think the impact of the recent news of
Union Square Hospitality moving away from tipping will
have on New York in general or the industry as a whole? – This is a really
interesting conversation. Ben, the CEO of Resy,
an app I’m involved in, had a great discussion
with some thought leaders in the restaurant space around this. It’s very fascinating. My, so I think Danny is amazing and always innovating and
doing incredible things and I think it’s amazing
that he’s doing something that I think really
takes care of his staff and his internal culture. I think it’s interesting. You know, I… This is actually not my general thought. This is my, one thing
I do well in marketing is I don’t think about what I’m gonna do, and then think everybody’s gonna do that. It’s been very successful for me. I try to think of the general masses. I have a vibe for that. It’s not what I thought about Twitter. Man, I don’t even like social media. What do you think about that? I don’t know, like if I wasn’t in the marketing and business world, I don’t think I’d be really using it. Like, I never took pictures as a kid. Like, there’s no, why do you think I have no Throwback Thursday pictures? There’s no freakin’ pictures of me in my life, Mom, and so… (mimics camera clicking) That’s a little inside joke with my mom. She made all mental pictures. So I think that, I think that, I think that I personally
am in a weird place because I’m still gonna
tip cash on top of it because it’s just in me. Like, I was a stock boy
that took out boxes, and people gave me tips. It’s so engrained in me. So even though I know I’m paying 21% more, or whatever it is, I’m
gonna probably put more cash just ’cause, and then I’m scared that that’s gonna break the whole system because if people still
arbitrarily do that, then what did you do? You just raised it 21%, but I think the flexibility
that allows organizations, the way you can take care
of people that work for you which will then, in turn,
create better service. I also think that an interesting model could have been just raising
the food prices in general. I think that’s a fascinating thing about the restaurant world. You know, the truth is
I really don’t know. I think that, I wonder
for people that are, I think the economy’s very good right now. I think if tomorrow the Wall Street cats are up to their no good
and shit hits the fan, are people gonna be like, “Well crap, “I don’t wanna go there “’cause I’m paying it 21% vig, “and maybe I’m in 10% tip mode right now?” How do you tip, Steve? – I pretty much 20, just by default. – [Gary] D. Rock? – [DRock] 25? – Really? – [DRock] Yeah, I
double the first number, then add like a few more. – On any kind of bill? – [DRock] Pretty much. – I’ll do like 20% and then
just go up to the next dollar. – [Gary] Got it. Staphon? (mumbles) – There’s my man. Way to go honest. Yeah, I mean, but those
are big numbers, right? Like, those aren’t 15, which
is a lot of what people, older demo pays at 15. – [Steve] Yeah.
– It kinda snuck up. I don’t know. I think it’s a very intriguing model. It’s forcing something on the consumer, which I think is fascinating. I think he has the brand
to get away with it for the people that know. I think a lot of people won’t
even know, won’t even realize. They’ll realize when
there’s no line for a tip, and I’m curious how their reaction will be that they got forced into a tip. Some people get antsy when they’re forced into a tip for six or more. So, I don’t know. I think it’s very individual, and I think there’ll be a lot of positive, definitely in the industry, and there’ll be some negative
from the end consumer. For me personally, it’s just
gonna make it more expensive for me to go to USV places, US, you know, those places so because I’m going to still tip. What are your thoughts, Steve? – I don’t know. – Do you know about it? – Oh yeah, no I’m very familiar with it. I don’t know, like, I came up as an actor, so I know tons of people
in the service industry. So like, whatever ends up
screwing them the least is I think it’s a huge positive. It’s kind of a scary situation to be forced to rely on what’s obviously a
subjective judgment call, but when it’s established
in order to pay rent– – I think the thing that
everybody’s gonna worry about is does the service change, right? Like, do the people
that hustle the most… That’s a real challenge. I think Danny will pull
it off operationally, but I think fast followers won’t, and then you’re not allowing
the best servers to win which eliminates meritocracy, which then creates lowest common courtesy and service. – [Steve] I mean, we don’t
have a tipping structure at VaynerMedia.
– I get it. – [Steve] We don’t have to
worry about, ya know, the– – I totally understand. I think that’s easily handled ’cause you could just fire, right? Like or you could just give raises. I mean there’s, a lot
of people always deploy that while we don’t have
tipping in our thing, sure, you have others
ways to like, ya know. There’s levers in all games, right? I think when, look I mean, this gets into a Unionized conversation. I was born in the Soviet Union. We’ve seen that play out at scale. It’s really hard to
suppress humans, and so… But the truth is on a microlevel, on a Danny Meyer’s establishments level, I have enormous confidence
that he can do it. I very much feel that I could
do very rogue shit at Vayner because it’s only 600 people, It’s only 1000 people,
whatever it’s gonna be that I could pull those levers. At super scale is when
it gets interesting. – [Steve] Next question from Dana Gaiser.