As various independently owned restaurants around the country successfully begin to do away with tipping in favor of higher flat rate wages for their employees, the nation’s first large-scale restaurant chain has decided to give it a try in a new test program:
In what may be the first significant trial of a no-tipping policy by a full-service chain, Joe’s Crab Shack has switched the servers at 18 units to a set wage and alerted customers they no longer are expected to tip.
Servers will be paid a wage starting at $14 an hour, though the exact amount will vary from server to server on the basis of their past performance, according to the chain’s parent company, Ignite Restaurant Group.
The chain is raising prices 12-15%, but Ignite execs note customers who typically tip around 20% may end up paying less. Ignite Restaurant group executives are hoping it the move will reduce employee turnover and improve customer service. Stay tuned!