Joe’s Crab Shack recently said that they are testing a new service model where diners will be discouraged to tip staff. They call this move forward-thinking, with the goal of making the restaurant “both a great place to eat and to work.”
As such, this no tip policy will be implemented across Joe’s Crab Shack’s 18 locations nationwide. For the moment, it’s a pilot program. Depending on the results, the company may roll out the no tipping policy throughout all of its 130 locations.
Chief Executive Officer of Joe’s Crab Shack’s parent company Ignite Restaurants, Ray Blanchette, said that the philosophy behind is really simple. He explained, “We believe that consistently great service should always be included in the menu price, so we are taking the responsibility for paying the service staff.” Moreover, Blanchette believes that the tipping model for restaurants is rather “antiquated” and therefore, it’s time to move away from the said practice.
With the new policy, diners at Joe’s Crab Shack can enjoy the restaurant’s food and service without having the obligation of leaving tips. Nonetheless, do not expect a service charge to be added to diners’ bills either. Rather, the restaurant has done a slight adjustment to menu prices to account for the additional labor cost. Nonetheless, Joe’s Crab Shack says the recent price adjustments are less than the average service tip of 20 percent.
With the new policy, staff (servers, bartenders and hosts) at Joe’s Crab Shack will be paid higher, fixed hourly wages. Moreover, it is also hoped that with this, there will also be reduced turnover.