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Joe’s Crab Shack Is Testing a No Tipping Policy at Select Restaurants

Joe’s Crab Shack Is Testing a No Tipping Policy at Select Restaurants


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This is the first US chain restaurant to try out a no tipping policy

Instead of tipping, the employees are paid more and menu prices have gone up.

Joe’s Crab Shack is testing a no tipping policy in 18 of its restaurants across the country.

This is the first chain to a no-tipping policy. Some high-end establishments, such as Tom Colicchio’s Craft (at lunchtime only, for now) and all of Danny Meyer’s restaurants, have announced that they are doing away with voluntary gratuities. Joe’s Crab Shack is at least tentatively following, and beginning to pay its employees a living wage.

“We… believe that it reflects our commitment to not only being a great place to eat but a great place to work,” Ray Blanchette, CEO of Ignite Restaurant Group, parent company of Joe’s Crab Shack, told Think Progress.

The restaurant will raise menu prices between 12 and 15 percent, and will increase the hourly wage of wait staff, bartenders, and hosts to $12 to $15 an hour.

“It’s expected to result in improved team atmosphere, a significant reduction in turnover, and greater financial security for the employees,” Blanchette told Think Progress.

The no-tipping experiment began in August and will continue through the remainder of 2015. The chain might expand this practice to other locations sometime next year and it seems to be received well by customers so far.

“The restaurant that it’s been tested in the longest is gaining the most traction,” Blanchette told Think Progress. “It seems the longer we do it the better we get at it.”


Joe’s Crab Shack becomes first major restaurant chain to implement no-tipping policy

Joe’s Crab Shack seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group, and dropping tips for servers.

Wages will be raised and begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business. To offset the wage increase, the company is implementing a 12 percent to 15 percent increase to the restaurant’s menu.

Joe's Crab Shack parent company, Ignite Restaurant Group --which also owns sports bar Brick House, began testing the no tipping this concept at select locations in August. The restaurant is now applying the policy to all of its 113 locations.

“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Ignite CEO Ray Blanchette told investors last week. “So we want to be somewhat cautious.”

Last month, New York restaurateur Danny Meyer, the CEO of the Union Square Hospitality Group, told Fox Business Network that tipping "has lost any value it had" and was dropping the practice and his restaurants including Union Square Cafe and Gramercy Tavern.


Joe’s Crab Shack becomes first major restaurant chain to implement no-tipping policy

Joe’s Crab Shack seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group, and dropping tips for servers.

Wages will be raised and begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business. To offset the wage increase, the company is implementing a 12 percent to 15 percent increase to the restaurant’s menu.

Joe's Crab Shack parent company, Ignite Restaurant Group --which also owns sports bar Brick House, began testing the no tipping this concept at select locations in August. The restaurant is now applying the policy to all of its 113 locations.

“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Ignite CEO Ray Blanchette told investors last week. “So we want to be somewhat cautious.”

Last month, New York restaurateur Danny Meyer, the CEO of the Union Square Hospitality Group, told Fox Business Network that tipping "has lost any value it had" and was dropping the practice and his restaurants including Union Square Cafe and Gramercy Tavern.


Joe’s Crab Shack becomes first major restaurant chain to implement no-tipping policy

Joe’s Crab Shack seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group, and dropping tips for servers.

Wages will be raised and begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business. To offset the wage increase, the company is implementing a 12 percent to 15 percent increase to the restaurant’s menu.

Joe's Crab Shack parent company, Ignite Restaurant Group --which also owns sports bar Brick House, began testing the no tipping this concept at select locations in August. The restaurant is now applying the policy to all of its 113 locations.

“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Ignite CEO Ray Blanchette told investors last week. “So we want to be somewhat cautious.”

Last month, New York restaurateur Danny Meyer, the CEO of the Union Square Hospitality Group, told Fox Business Network that tipping "has lost any value it had" and was dropping the practice and his restaurants including Union Square Cafe and Gramercy Tavern.


Joe’s Crab Shack becomes first major restaurant chain to implement no-tipping policy

Joe’s Crab Shack seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group, and dropping tips for servers.

Wages will be raised and begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business. To offset the wage increase, the company is implementing a 12 percent to 15 percent increase to the restaurant’s menu.

Joe's Crab Shack parent company, Ignite Restaurant Group --which also owns sports bar Brick House, began testing the no tipping this concept at select locations in August. The restaurant is now applying the policy to all of its 113 locations.

“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Ignite CEO Ray Blanchette told investors last week. “So we want to be somewhat cautious.”

Last month, New York restaurateur Danny Meyer, the CEO of the Union Square Hospitality Group, told Fox Business Network that tipping "has lost any value it had" and was dropping the practice and his restaurants including Union Square Cafe and Gramercy Tavern.


Joe’s Crab Shack becomes first major restaurant chain to implement no-tipping policy

Joe’s Crab Shack seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group, and dropping tips for servers.

Wages will be raised and begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business. To offset the wage increase, the company is implementing a 12 percent to 15 percent increase to the restaurant’s menu.

Joe's Crab Shack parent company, Ignite Restaurant Group --which also owns sports bar Brick House, began testing the no tipping this concept at select locations in August. The restaurant is now applying the policy to all of its 113 locations.

“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Ignite CEO Ray Blanchette told investors last week. “So we want to be somewhat cautious.”

Last month, New York restaurateur Danny Meyer, the CEO of the Union Square Hospitality Group, told Fox Business Network that tipping "has lost any value it had" and was dropping the practice and his restaurants including Union Square Cafe and Gramercy Tavern.


Joe’s Crab Shack becomes first major restaurant chain to implement no-tipping policy

Joe’s Crab Shack seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group, and dropping tips for servers.

Wages will be raised and begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business. To offset the wage increase, the company is implementing a 12 percent to 15 percent increase to the restaurant’s menu.

Joe's Crab Shack parent company, Ignite Restaurant Group --which also owns sports bar Brick House, began testing the no tipping this concept at select locations in August. The restaurant is now applying the policy to all of its 113 locations.

“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Ignite CEO Ray Blanchette told investors last week. “So we want to be somewhat cautious.”

Last month, New York restaurateur Danny Meyer, the CEO of the Union Square Hospitality Group, told Fox Business Network that tipping "has lost any value it had" and was dropping the practice and his restaurants including Union Square Cafe and Gramercy Tavern.


Joe’s Crab Shack becomes first major restaurant chain to implement no-tipping policy

Joe’s Crab Shack seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group, and dropping tips for servers.

Wages will be raised and begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business. To offset the wage increase, the company is implementing a 12 percent to 15 percent increase to the restaurant’s menu.

Joe's Crab Shack parent company, Ignite Restaurant Group --which also owns sports bar Brick House, began testing the no tipping this concept at select locations in August. The restaurant is now applying the policy to all of its 113 locations.

“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Ignite CEO Ray Blanchette told investors last week. “So we want to be somewhat cautious.”

Last month, New York restaurateur Danny Meyer, the CEO of the Union Square Hospitality Group, told Fox Business Network that tipping "has lost any value it had" and was dropping the practice and his restaurants including Union Square Cafe and Gramercy Tavern.


Joe’s Crab Shack becomes first major restaurant chain to implement no-tipping policy

Joe’s Crab Shack seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group, and dropping tips for servers.

Wages will be raised and begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business. To offset the wage increase, the company is implementing a 12 percent to 15 percent increase to the restaurant’s menu.

Joe's Crab Shack parent company, Ignite Restaurant Group --which also owns sports bar Brick House, began testing the no tipping this concept at select locations in August. The restaurant is now applying the policy to all of its 113 locations.

“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Ignite CEO Ray Blanchette told investors last week. “So we want to be somewhat cautious.”

Last month, New York restaurateur Danny Meyer, the CEO of the Union Square Hospitality Group, told Fox Business Network that tipping "has lost any value it had" and was dropping the practice and his restaurants including Union Square Cafe and Gramercy Tavern.


Joe’s Crab Shack becomes first major restaurant chain to implement no-tipping policy

Joe’s Crab Shack seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group, and dropping tips for servers.

Wages will be raised and begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business. To offset the wage increase, the company is implementing a 12 percent to 15 percent increase to the restaurant’s menu.

Joe's Crab Shack parent company, Ignite Restaurant Group --which also owns sports bar Brick House, began testing the no tipping this concept at select locations in August. The restaurant is now applying the policy to all of its 113 locations.

“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Ignite CEO Ray Blanchette told investors last week. “So we want to be somewhat cautious.”

Last month, New York restaurateur Danny Meyer, the CEO of the Union Square Hospitality Group, told Fox Business Network that tipping "has lost any value it had" and was dropping the practice and his restaurants including Union Square Cafe and Gramercy Tavern.


Joe’s Crab Shack becomes first major restaurant chain to implement no-tipping policy

Joe’s Crab Shack seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group, and dropping tips for servers.

Wages will be raised and begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business. To offset the wage increase, the company is implementing a 12 percent to 15 percent increase to the restaurant’s menu.

Joe's Crab Shack parent company, Ignite Restaurant Group --which also owns sports bar Brick House, began testing the no tipping this concept at select locations in August. The restaurant is now applying the policy to all of its 113 locations.

“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Ignite CEO Ray Blanchette told investors last week. “So we want to be somewhat cautious.”

Last month, New York restaurateur Danny Meyer, the CEO of the Union Square Hospitality Group, told Fox Business Network that tipping "has lost any value it had" and was dropping the practice and his restaurants including Union Square Cafe and Gramercy Tavern.


Watch the video: Joes Crab Shack Dance (May 2022).