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 Springfield Entertainment

‘WE’RE BACK’: Restaurant owner announces plans to reopen 8 months after devastating fire 
‘WE’RE BACK’: Restaurant owner announces plans to reopen 8 months after devastating fire 

The owner of one of the Oregon District’s most celebrated eateries has just announced her business’ rampant return.  >> Restaurant owner vows to reopen after devastating fire  “We are so grateful to everyone who has helped us rejoin Dayton’s culinary scene,”  Margot Blondet, owner and executive...
JUST IN: This Dayton institution has quietly raised $14 million under our noses 
JUST IN: This Dayton institution has quietly raised $14 million under our noses 

Friday lunch at Dayton Art Institute’s Oktoberfest celebration not only came with lederhosen but with a big announcement.  Michael R. Roediger, the museum’s director and CEO, kicked off its 47th annual event by announcing the museum’s Centennial Campaign at the festival’s Lederhosen Lunch.   “As The DAI...
‘Jersey Boys’ headed to Springfield stage
‘Jersey Boys’ headed to Springfield stage

When it comes to national Broadway tour launches, count Springfield, Ohio, in with the bigger cities. It’s where one of the most popular Tony-winning sensations of the current century will start this fall. “Jersey Boys,” the story of Rock & Roll Hall of Famers The Four Seasons’ rise and fall in the 1960s, will premiere at 8...
KISS announces 'End of the Road' farewell tour
KISS announces 'End of the Road' farewell tour

We’ve heard this song before, but it seems genuine that KISS’ upcoming “End of the Road World Tour” will be exactly that. The band announced the decision to pack up the pyro after a performance on Wednesday’s finale of “America’s Got Talent.” "All that we have built and all that we have...
Hal McCoy: Why Pete Rose play ‘Banned from Baseball’ is worth seeing
Hal McCoy: Why Pete Rose play ‘Banned from Baseball’ is worth seeing

It was 1989 when Pete Rose was banned from baseball, and it was evident the repercussions would never die, not as long as baseball exists.  That’s because of the taint and stain placed on the game and because of Rose’s Type A personality, a mentality that won’t let it die from his perspective.   His lifetime (and beyond)...
More Stories