Joe’s Crab Shack drops tipping at its restaurants, one of the first chains to do so. The chain will increase server wage to $14 an hour, offset by 12%-15% increase in food. The company says the move should reduce staff turnover, improve service quality, and actually lower prices for customers who are typically more generous with their tipping. CEO:
We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way. So we want to be somewhat cautious.