Joe’s Crab Shack Rolls Out No-Tipping Policy

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DALLAS — When you go out to eat at a sit down restaurant, one things for sure, you have to tip! But the days of waiters and waitresses working for tips may become a thing of the past.

Joe’s Crab Shack is testing a no-tipping policy at several of its restaurants. Instead of relying on tips, the wait staff will be paid a higher hourly wage up to $14 an hour, in some places.

In order to pay the higher wages, customers at the Crab Shack will be paying higher menu prices — 12%-15% higher — instead of adding a tip to the final bill. Hey, one less thing to argue about at the end of the meal.

Tossing the tip appears to be a trendy move in the restaurant business. Last month, the Union Square Hospitality Group based in NYC announced it was doing away with tips at all 12 of its upscale eateries.

Joe’s Crab Shack is hoping the new policy brings down the sky-high turnover rates among its employees, which are higher than 100%.

So, will customers care if they can’t reward or punish their server for good or bad service? Or will they just be happy they don’t have to do the math at the end of the meal?

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