Joe's Crab Shack to end no-tipping policy


The no-tipping movement may be coming to an end, at least at Joe's Crab Shack.

The seafood chain, which began testing a no-tipping model at 18 locations last August, is now ending the practice.

>> Read more trending stories

The policy meant that bartenders, servers and hosts would be paid at a higher fixed hourly rate. Menu prices were increased to make up for the change.

CNN Money reported that servers were paid at least $12 an hour. Before Joe's tested the policy, severs earned $2 an hour plus tips.

The restaurants testing the policy lost an average of 8 to 10 percent of customers.

Related: Joe's Crab Shack tosses tips, raises employee pay

"We tried it for quite a while and we tried communicating it different ways," Bob Merritt, CEO of Joe's parent company Ignite Restaurant Group, told CNN Money.

Joe's Crab Shack has more than 100 U.S. locations.

Research from the test showed that about 60 percent of customers did not like the no-tipping policy because they believed that it took away the incentive for good work.

Although the policy will end at most of the restaurants in which it was tested, it will continue at four locations where it performed well.

"We are going to try to figure out why it worked in some places and why not in others," Merritt told Nation’s Restaurant News. "The way we look at it is: We are really continuing the tests in place with where it works."


Reader Comments ...


Next Up in Food & Dining

6 of the BEST places for Chinese food in Dayton
6 of the BEST places for Chinese food in Dayton

Craving Chinese food? Try one of these top spots in Dayton.  1.) Ozu852  Voted #1 in the 2017 Best of Dayton poll, this spot is known for high-quality customer service and fresh, delicious dishes. Specializes in sushi. Where: 852 Union Blvd., Clayton Hours: Mon-Thurs 11 a.m. to 9:30 p.m., Fri-Sat 11 a.m. to 10:00 p.m. Offering both Japanese...
This 20-minute lemony shrimp dish is a weeknight hero
This 20-minute lemony shrimp dish is a weeknight hero

Shrimp wins as America's favorite seafood in polls year after year; you know those scenes in the film "Forrest Gump" where Pvt. Bubba Blue rambles through all the ways it can be prepared? I think I've had them all. This 20-minute dish ranks high on my list. I could eat it once a week, warm or as cold leftovers. It starts with a bag of frozen...
Family, meet my old love
Family, meet my old love

Almost as soon as we landed in Ho Chi Minh City, Vietnam, I set out to make my family miserable. This was not difficult. It was late August, nearing 90 degrees and humid. All I had to do was propose we walk through the streets of the former Saigon to a restaurant for lunch. At first, my wife, Jean, and our daughters Sasha, 7 1/2, and Sandy, almost...
A bean stew that is far from ordinary
A bean stew that is far from ordinary

Many Americans fall in love with the food of Georgia (the country, not the state) after sampling khachapuri, a savory cheese-stuffed bread often served with a runny egg on top. For others, it’s a plateful of handmade khinkali, the country’s meaty version of soup dumplings. For me, the obsession started with a humble bean stew called lobio...
How to spike your cooking game with hard liquor
How to spike your cooking game with hard liquor

It’s no secret that the proper libation can elevate an elegant meal. But have you ever considered incorporating liquor into something other than a cocktail glass? Properly used, alcohol works wonders in food as well. Maybe you’ve added wine to a sauce or braise, or added beer to a batch of chili or barbecue sauce, but incorporating distilled...
More Stories