Customers at Joe’s Crab Shack will no longer be expected to tip, according to RestaurantBusinessOnline.com. The 113-location chain owned by Ignite Restaurant Group will instead pay servers a fixed hourly rate, hovering around $14 depending on the server. The website reports that the “money to pay the waiters and waitresses is being generated by a price increase of 12 percent to 15 percent.”
The move comes on the heels of the announcement by Danny Meyer’s Union Square Hospitality Group that it would do away with tipping in most of its restaurants, but this appears to be the first national chain to test the model, which it began doing in August and continues to expand.
There’s no word yet on when the changes will be instituted at the Austin (600 E. Riverside Drive) and Round Rock (2401 S. I-35) locations of Joe’s Crab Shack, but I have reached out for more details.