Joe's Crab Shack Says "No More Tipping"

Seafood restaurant chain Joe's Crab Shack has become the first major chain in the US that has implemented a no-tips policy.

The management has announced a hike in wages to neutralize the effect of the new policy.

Waiters will now receive at least $14 an hour, and customers can enjoy a stress-free meal without worrying if they will be seen as cheapskates.

"We're really leading in our industry with regards to national brand going out and testing this thing in a meaningful way," Ignite CEO Ray Blanchette told investors last week. "So we want to be somewhat cautious."

Joe's Crab will also hike its menu price by 12 to 15 percent in order to offset the wage increase.

The company expects the new policy to improve team atmosphere and increase financial security of its employees.

Reaction has been generally positive, along the lines of:

Earlier last month, Danny Meyer's Union Square Hospitality Group had announced that all of its restaurants will get rid of tipping.

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