Joe's Crab Shack just became the first major restaurant chain to ban tipping
Joe's Crab Shack on Instagram
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.
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