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Joe's Crab Shack testing no-tipping policy

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Posted at 12:14 PM, Nov 11, 2015
and last updated 2015-11-11 15:14:22-05

Joe's Crab Shack has announced that it is thinking about expanding its no-tipping policy.

According to CNN Money, the casual seafood chain has stopped its employees from receiving tips in 18 of its restaurants since August and is thinking about expanding the policy nationwide.

Joe's Crab Shack is the first major restaurant chain to put a no-tipping system to the test.

According to the CEO and president for the restaurant group that owns Joe's Crab Shack, they picked locations around the country. Signs were put up in the restaurants informing diners of the new policy and tip line was removed from credit and debit card receipts.

Menu prices are expected to increase between 12 and 15 percent at the restaurants where tipping has been eliminated and front-house workers will now earn between $12 and $14 per hour. However, the CEO and president says that customers will ultimately pay less for the food and service they receive. The restaurant group also hopes that a higher wage will also persuade employees to stick around since they will be guaranteed to make the same amount of money no matter if they are working when their restaurant is busy or not.

The movement to eliminate tipping at restaurants has slowly been gaining steam since last October when the Union Square Hospitality Group in New York City announced that it was phasing out requests for gratuity. Before that, it was only a handful of independent restaurants in New York City and San Francisco that eliminated tipping at their establishments.