Joe’s Crab Shack Abolishes Tipping …See the Positive Change!

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Joe’s Crab Shack is reinventing the restaurant game. But this has nothing to do with the food or the service.

With the “No Tipping” policy implemented in 18 of its 130 locations, it has become the first major food chain to practice so. It even includes the credit card transactions as receipts will no longer include a tip line.

 

To give benefits to the employees, the restaurant imposed a wage increase. The staff of Joe’s Crab Shack—from the bartenders to the servers and hosts—are now getting $14 an hour (previously just about $2 an hour plus tips).


This may raise some eyebrows, but we should remind ourselves that getting the estimated total income from tips garnered an hour is a case-to-case basis. So the new policy with the fixed amount can allow the restaurant’s employees to rake in a significant amount of income more than before.

 

 

Raymond Blanchette, CEO of Ignite Restaurant Group, plans to refurbish the tipping method to provide a stable environment and prevent frequent turnover rates among staff.

To make up for the increased wages, the restaurant will be increasing menu prices to 12 percent to 15 percent. Now before you thrifty shoppers roll your eyes, this still creates a fair atmosphere between the diners and the restaurant itself as the increase is still less (by normal standards) than how much practical tippers give after a meal.


The experiment at Joe’s Crab Shack could start a national trend or might even be a global system. Arguments have risen that this could lessen the quality of service, but a study has shown that tip size does not necessarily relate to the quality of service given.

 

 

The only difference would run between 1 percent and 5 percent.


Even in its testing phase, the response to the no-tipping model had been positive so far.

In an interview with WPXI, Blanchette stated, “Our staff has also embraced the change, which is important as we seek to implement the new policy across the system over time.”

It would be great idea to head over to Joe’s Crab Shack with the knowledge that what you pay for your meal will provide sustainable wages for the people who serve you.

 

 

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