Blanchette continues, “We have a responsibility to give our employees the best possible future while providing the best service to our guests”.
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With the new policy, servers at the selected restaurants will now earn hourly wages of $12-$14. Earlier this week, the chain announced that 18 of its restaurants have banned tipping as part of a pilot program. However, Blanchette said that it will take a while for the company to train its customers against tipping as well as accepting the slightly higher menu prices so that the company is able to pay its employees a fair wage. “It’s simple, really”, said Blanchette. “We believe that consistently great service should always be included in the menu price, so we are taking the responsibility for paying the service staff”. It seems like a vicious circle that one restaurant chain chose to stop completely.
The Fairview Heights restaurant started its no-tip policy on October 13.
While Joe’s Crab Shack is the first big chain to make a move in support of the so-called no-tip movement, it follows the lead of the Union Square Hospitality Group, which made waves last month when it announced plans last to eliminate tipping at all 13 restaurants in NY City by the end of 2016, ABC reports.
This new policy is leaving a few customers feeling unsettled. If we’re sitting at a dockside spot having dinner and drinking beers while watching one of our favorite bands play for two or three hours, we’re going to make sure to tip at least 35 percent – and then make sure we have cash for our Uber driver.
I know how they feel. I think it’s a good idea.
Customer Phyllis Brown said she had waited tables for more than 20 years, and if she were still working, she would rather still work for tips. The 83-year-old said it was the tips she received that helped provide for her family.
“Ultimately, people are paying less and hopefully we are delivering more value”, Blanchette said in an interview Wednesday with CNNMoney.
The federal minimum wage of $7.25 an hour generally doesn’t apply to employees who receive tips on the job.
Joe’s decision comes as public discourse is growing louder for increasing the minimum wage, particularly among restaurant workers. In order to support this new wage model, the menu prices will increase from 12 to 15 percent. The company did not specify the increased hourly wage.
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Minimum wage workers have faced opposition in efforts to increase their pay.
