Joe’s Crab Shack becomes 1st chain to test no-tipping
INDIANAPOLIS (WISH) – Joe’s Crab Shack will become the first chain restaurant to test a no-tipping policy nationally.
According to USA TODAY, the restaurant’s parent company, Ignite Restaurant Group, began testing the no-tipping policy at a select few restaurants in August. Now, the chain is expanding its no-tipping service to all 113 locations in the United States.
Server wages will start at $14/hour. Before, server wages started at $2.13/hour, plus tip.
The company will add a 12 percent to 15 percent increase to the restaurant’s menu to generate the revenue needed for the new wages.
Ray Blanchette, CEO of Ignite Restaurant Group, said servers are more likely to stay at the company with a higher hourly wage. He said they will feel secure to know they have guaranteed pay, regardless if their shift is dead or busy.
The test is expected to run until at least the end of the year.
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