Per CNBC

The founder of Shake Shack, Danny Meyer, went on CNBC's Squawk Box where he gave his thoughts regarding tips. The founder noted that whe buying coffee, tips weren't needed.

Meyes: “If you’re just taking out food, and it was just a transaction — I give you money, you give me a cup of coffee — I don’t think there’s any obligation to tip whatsoever,”

In 2015, Meyer announced that his restaurants would not be accepting tips. This was an effort to narrow what was described as an income gap between the servers and cooks.

When the pandemic happened, and Meyer's restaurants started to open up again, the decision was reversed, and they started accepting tips again. The founder explained this reversal, sharing how it wasn't good for servers.

Meyer: “It was inhumane to tell our servers that you can’t accept that expression of gratitude,”

At the end of March, it was reported that the minimum expectation for tips increased from 15% to 20%. This came with 18% being regarded as the bare minimum for decent service.

In February, it was reported that the IRS issued a new program for employers to allow them to report tips that employees made.

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