National Chain Joe's Crab Shack Tests No Tipping at 18 U.S. Restaurants
On Wednesday, Joe's Crab Shack announced that it would be testing a no tipping policy in eighteen of its restaurants in the United States. According to several surveys that have been conducted, service has actually increased as a result of these no tipping policies. These test locations will now be paying workers an hourly wage of $12. In order to compensate for this wage increase, the company raised its menu prices. The company believes that this higher base wage will lead to more employee retention.
See "National Chain Joe's Crab Shack Tests No Tipping at 18 U.S. Restaurants", November 12, 2015