Joe's Crab Shack becomes first major chain to drop tipping.

[Yaj Yak]

instead of tips... $12-14 an hour for servers.

ummmmmmmmm. not sure how i feel. interested to hear your guys input...

Joe's Crab Shack Becomes First Major Chain To Drop Tipping

Joe’s Crab Shack is now the first major restaurant chain to start paying workers a living wage.

The seafood chain will experiment with dropping tipped-wages in 18 of it stores, the head of its parent company said.

"Servers, hosts, bartenders are paid now higher, fixed, hourly wages," Ignite CEO Ray Blanchette said, according to CNBC. "It's expected to result in an improved team atmosphere, a significant reduction in turnover and greater financial security for the employees."

Employees who were once paid around $2 an hour plus tips will now be paid at least $12 an hour, Blanchette said. Experienced staff stand to make even more.

According to Restaurant Business, the company actually began rolling out the policy in August but only announced the change in a call with investors last week.

The move follows famed New York restauranteur Danny Meyer's announcement last month that all of his eateries were getting rid of tipping. Celebrity chef Tom Colicchio is also experimenting with the policy.

Click to read more...

 

[Yaj Yak]

another article.

Joe's Crab Shack drop tipping - Business Insider

Joe's Crab Shack is the first major chain to drop tipping from its restaurants.

The seafood chain is following in the footsteps of other restaurants, such as Danny Meyer's Union Square Hospitality Group.

Servers' wages will begin at $14 an hour, but pay will vary based on each server's past performance, according to Restaurant Business.

The prices of menu items at Joe's Crab Shack will also be reduced.

Joe's Crab Shack began practicing this concept at some locations in August. The restaurant is now applying the policy to all of its 113 locations.

Ray Blanchette, parent company Ignite Restaurant Group's CEO, told investors that this wage model solves some service problems for Joe’s. Waiters and waitresses usually balk when coworkers have to help them with big tables, because that means they have to split up the tip.

Ignite recently closed seven Joe Crab Shack locations in order to focus on growing its sister restaurant, Brick House Tavern and Tap.

Shake Shack founder Danny Meyer announced that he will eliminate tipping at all of his restaurants in October. But instead of lowering menu prices, Meyer's restaurants will raise prices to make up for the money lost.

Advocates of no-tipping policies say they help attract and retain better workers because the employer can offer a more consistent salary.

Joe's Crab Shack is a seafood-themed restaurant with more than 100 locations.

 

[willizm]

If they are paying their waitresses that much an hour then it just means they will inflate their prices by 15-20%.

Edit: just saw the second post. If they are also reducing prices then how do they expect to keep the place in business? Does it make sense or are they going to spread the waitresses so thin to make it financially sound but also create a shit experience for the customers.

 

[Yaj Yak]

If they are paying their waitresses that much an hour then it just means they will inflate their prices by 15-20%.

second article.

The prices of menu items at Joe's Crab Shack will also be reduced.

 

[Yaj Yak]

my problem from the customer point of view, is now will you for sure be taken care of at the same level of someone thinking they need to please you to make money?

but at the same time... from the server point of view... you can be a fucking rockstar server... and have a table of dickheads... and not get shit...

 

[RICH17]

It's going to be the same principle as retail. Do a shity job and you talk to the manager, Not tip less.

 

[Yaj Yak]

It's going to be the same principle as retail. Do a shity job and you talk to the manager, Not tip less.

this is entirely different than retail.

 

[SinisterSHO]

I bet the checks still have a line for you to leave a tip.

 

[Yaj Yak]

I bet the checks still have a line for you to leave a tip.

im curious about that.

 

[SinisterSHO]

It's great in theory, and would probably work for some places better than others just based on the clientele. But I bet the better servers who are used to getting tipped well will get pissed when the shitty server is making the same money.

 

[RICH17]

this is entirely different than retail.

I don't see what it's not. I expect great service from retail people just as well as great service from a server. But I can control how well the server gets paid. Not the retail employee.

It's great in theory, and would probably work for some places better than others just based on the clientele. But I bet the better servers who are used to getting tipped well will get pissed when the shitty server is making the same money.

I think most servers I know only do it cause you can have some great nights and make 50 bucks or more an hour. So this is going to backfire IMO

 

[SinisterSHO]

im curious about that.

I'm sure it's there. Like when they automatically add the tip because of the size of your party.. They don't remind you, and I bet a large amount of people still tip on top of the automatic gratuity.

I bet there's some lame tiny sentence on the bottom of your menu that says they get paid well so tipping isn't necessary but still appreciated.

 

[Yaj Yak]

I don't see what it's not. I expect great service from retail people just as well as great service from a server. But I can control how well the server gets paid. Not the retail employee.

you're drunk again debbie downer.

i don't need an employee to directly help me at a retail establishment, pretty much ever.

I absolutely NEED 100% of the time someone to serve me and have direct contact with me at a sit down restaurant.



duh.

 

[Yaj Yak]

JP Clemens As a former employee, I can't tell you how many countless shifts I left with $25.00 because of tables only tipping $5.00 on $100.00. I don't like that I won't be able to tip going there, but I know servers making equal money every shift will be a lot better. Unfortunately not every Joe's Crab Shack is equal. Some places servers make a lot more money. It's neighborhood depending.

some interesting comments on their FB.

 

[Yaj Yak]

We generally love our visits to Joe's Crab Shack as the food has always been good and the service is usually great. My friend and I visited the Mid Rivers, Missouri location tonight for dinner and were disappointed ted when the bill came. There was no line to leave our server a tip and when we asked about it we expect were advised per their new corporate policy they no longer are allowed to accept credit card tips and all employees have been moved to pay rate of minimum wage. So servers, bartenders, hosts/hostesses, and kitchen staff that work to provide a great dining experience are now making the same as the high school students working at a fast food drive thru that 90% of the time cannot get your order right or put a sandwich together properly. If this practice stays in order the quality of service is going to decrease drastically since they are getting paid the same regardless of the amount of tables they work or satisfaction of their customers. Knowing many that work in the service industry this also a great pay cut these individuals have taken as the increase to minimum wage is no comparison to the tips they are now missing out on. I hope this "testing" phase ends for the sake of the staff and to preserve the quality of service.

fb comment

who knows how much is true

 

[RICH17]

First post says 12 bucks a hour. But they're making 8?

 

[Yaj Yak]

First post says 12 bucks a hour. But they're making 8?

who said 8

 

[Euro]

The article said minimum wage

 

[Euro]

It's great in theory, and would probably work for some places better than others just based on the clientele. But I bet the better servers who are used to getting tipped well will get pissed when the shitty server is making the same money.

Agreed. I know my wife and her friends would be royally upset if they (good at what they do) are making the same money as the dipshit, airhead girls that come and go in the service industry.

 

[Yaj Yak]

The article said minimum wage

which article

 

[bmoore04]

fb comment

who knows how much is true

What you quoted in this post says MIN wage.

 

[Euro]

^dat one, post #15. Too lazy to copy/paste

 

[Yaj Yak]

What you quoted in this post says MIN wage.

facebook comment... does not equal... article.

see how i said "who knows how much is true"?


since it's a facebook comment?

 

[Yaj Yak]

^dat one, post #15. Too lazy to copy/paste

try again.

 

[bmoore04]

facebook comment... does not equal... article.

see how i said "who knows how much is true"?


since it's a facebook comment?

I didn't call it an article or say it was true. Just telling you were they are getting it from.