Joe’s Crab Shack abolishes tipping, raises pay and prices
Joe’s Crab Shack has joined a growing group of restaurants doing away with tipping.
The national chain is following in the footsteps of Shake Shack founder Danny Meyer’s Union Square Hospitality Group, which also recently announced plans to abolish tipping in favor of higher wages — and menu prices.
The beach-themed restaurant chain began testing a no-tipping service policy in more than a dozen restaurants in the last few months, according to CEO Raymond Blanchette.
Blanchette called the practice a “forward-thinking policy” in an earnings call last week, according to a report from Yahoo.
Prices are going to go up a bit to make up for the gratuity, Blanchette told analysts on the call.
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Until now, reduced or eliminated tipping has been mostly in high-end restaurants such as Alinea and Next in Chicago, where diners are charged a flat rate. No tipping also reigns at Manhattan’s Per Se and Berkeley’s famed Chez Panisse.
Another Chicago restaurant known for its no-tipping policy (reportedly made before Danny Meyer’s announcement in October) is Logan Square’s The Radler, where an 18 percent across-the-board service fee is added to every bill.
Twitter: @corilyns
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