Joe’s Crab Shack Is Officially Getting Rid Of Tipping, Boosting Server’s Wages To At LEAST $14 Per Hour

It’s official: Joe’s Crab Shack is the FIRST major chain restaurant to get rid of tipping!

Joe’s Crab Shack tipping is being dropped in favor of a better trade off for employees. This is the approach that CEO of Ignite Restaurant Group, Ray Blanchette, is aiming for. Ignite owns Joe’s Crab Shack as well as the sports bar, “Brick House.”

Teenage girls (14-16) giving waitress order in diner

Source: Tony Anderson / Getty

The traditional policy was seen as being unfairly distributed since servers were rewarded for their service, while dishwashers and others behind-the-scenes weren’t as well compensated in terms of tipping.

The new tipping policy will begin at a wage of $14 an hour, but amounts will vary from server to server based on past performance. In order to offset the wage increase, the company is also raising its menu prices by 12 percent to 15 percent.

Blanchette told investors the move should reduce staff turnover, improve service quality, and actually lower prices for customers who are typically more generous with their tipping. Testing of the new policy began in August and is still being rolled out across the country. Joe’s Crab Shack appears to be the first major chain to implement a no-tipping policy.

Source: SoulFood Cooking & Bakery Recipes / http://www.facebook.com

So what do you think? Will it work or not?

Also…is it weird though that I still feel like I will have a gut instinct to still leave a tip if my server is just that great? Maybe it’s just that I’m just a former server and I can’t help it…

Joe’s Crab Shack Is Officially Getting Rid Of Tipping, Boosting Server’s Wages To At LEAST $14 Per Hour

RadioNOW 100.9

Quick Links

Legal