Joe’s Crab Shack has announced plans to eliminate tipping at its more than 100 locations nationwide.
Ray Blanchette, the CEO of parent company Ignite Restaurant Group, confirmed the plans, which is currently in place in 18 locations across the country, Forbes magazine reported.
Mr. Blanchette said that since Joe’s Crab Shack employees will be paid “at a higher, fixed hourly rate, starting at $12 per hour,” the company will have to offset costs by raising the menu prices around 12 percent to 15 percent, Restaurant Business reported.
Credit card receipts will also no longer have a tip line.
“We are confident that this change will provide increased financial stability for our employees,” Mr. Blanchette told Forbes. “A small price increase was taken to account for the added labor cost, but the policy is designed to benefit both the guests and employees.”
The no-tipping policy remains in its pilot program, Mr. Blanchette said, and no timeline has been established yet as to when the other locations will be included.
• Jessica Chasmar can be reached at jchasmar@washingtontimes.com.
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