Business & Tech
No-Tipping Tested at Joe's Crab Shack
The national seafood chain is testing whether the "antiquated" policy of tipping should be replaced by higher base wages.
Even if you love the service at the Joe’s Crab Shack in your area, you might be able to skip the tip.
The restaurant chain has been testing a no-tipping service policy in more than a dozen stores in recent months, CEO Raymond Blanchette told reporters, says CNBC. The company has not specified which locations are trying the no-tips policy.
Joe’s Crab Shack has four Maryland locations at Arundel Mills in Hanover, plus Greenbelt, Hunt Valley and Gaithersburg.
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To offset the loss of tips, wages will increase; servers will start at $14 an hour, according to Restaurant Business. Customer prices will increase from 12 to 15 percent to pay the higher wages.
Blanchette said the practice of customer tips is antiquated and promotes an overly competitive environment for workers.
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The change is “expected to result in an improved team atmosphere, a significant reduction in turnover and greater financial security for the employees,” Blanchette said.
Joe’s Crab Shack, owned by Ignite Restaurant Group, saw a 6.6 percent drop in sales in the third quarter.
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