The restaurant chain Joe's Crab Shack has become the first national chain to implement a no tipping policy after testing it out in specific markets over the last few months. So instead of servers and other restaurant employees just making a few bucks an hour and then depending on tips to supplement their income, they're now being paid higher, more competitive wages.
CEO Raymond Blanchette referred to it as a "forward-thinking policy" designed to do away with the "antiquated" old style of tipping. On a recent conference call, Blanchette said that by paying everyone more money, "it's expected to result in an improved team atmosphere, a significant reduction in turnover and greater financial security for the employees."
In order to make up for the increased wages, prices at the restaurant will be raised for menu items.