Now major chain Joe’s Crab Shack is also giving no-tipping a whirl.
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Joe’s Crab Shack’s no-tipping policy comes just weeks after restaurateur Danny Meyers revealed that all restaurants under Union Square Hospitality Group would do away with gratuities. Hayden fully expects other national chains to jump onboard with the no-tipping policy, but predicts it will be a short-lived trend. The test phase is expected to run through at least the end of the year.
However, according to a manager at the San Francisco location, the Fisherman’s Wharf outpost will not be participating in the tipless test.
Ray Blanchette, parent company Ignite Restaurant Group’s CEO, told investors that this wage model solves a few service problems for Joe’s. The only location in NY City is at 200 Baychester Ave.in the Bronx, and is not one of the trial locations.
And it allows the company to better weather minimum wage increases, which have been taking place all over the country, by giving it more control over its labor costs.
Calling the practice a “forward-thinking policy” during an earnings call last week, Blanchette explained that traditional tipping methods were “antiquated” and fostered and overly competitive environment for workers. “We see this is an opportunity to really continue to upgrade the talent within our organization”.
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Blanchette said the company has not yet talked about extending the test to the Brick House concept. “This is something we want to learn and understand at a very high level, but it is something that we are extremely excited about”.
