Joe’s Crab Shack rolls out no-tipping policy

[Superstreet]

Joe’s Crab Shack rolls out no-tipping policy

Joe?s Crab Shack rolls out no-tipping policy | FOX2now.com (http://fox2now.com/2015/11/11/joes-crab-shack-rolls-out-no-tipping-policy/)

The no-tipping movement is picking up steam. Joe’s Crab Shack is testing a no-tip model in several of its restaurants.

The casual seafood chain has eliminated gratuity in 18 establishments since August and could eventually expand the policy nationwide.

Front-house workers at the selected restaurants will now earn hourly wages of around $12-$14 an hour, but some can earn more.

With more than 130 locations nationwide, this is the first major restaurant chain to put a no-tipping system to the test.

“We picked a broad range of locations with different nuances to see how it responds in each different area,” Raymond Blanchette, president and CEO of Ignite Restaurant Group, which owns Joe’s Crab Shack, told CNNMoney. “We wanted a random sampling that would be indicative of how a national rollout would be.”

There are signs on and around the restaurants informing diners of the new policy, and the tip line has been eliminated on credit and debit receipts.

During an earnings call last week, Blanchette said menu prices will increase around 12-15%, but prices can vary based on location and could change as the testing continues.

“Ultimately, people are paying less and hopefully we are delivering more value,” Blanchette said in an interview Wednesday with CNNMoney. “It’s one of the reasons we are testing, to make sure people are judging the total experience and not just menu price.”

He also expects the compensation policy to reduce labor costs and eventually beef up the restaurant’s bottom line.

Joe’s has been experiencing slowing traffic, with sales and revenue taking a hit in the third quarter.

High turnover rates are common in the restaurant business, and at Joe’s, Blanchette said front-house turnover rates are higher than 100%. He expects the compensation change will increase retention and create a better trained workforce.

Some workers have left because of the change, but Blanchette said the company isn’t having any problems keeping the restaurants staffed. “The person happy at Joe’s is the person looking for a stable income; it’s a significant wage.”

While still small, the move to eliminate tips in restaurants has been gaining some traction. In October, The Union Square Hospitality Group, which operates 12 restaurants in New York City announced it will phase out gratuity.

Blanchette said there is no timeline to eliminate tipping in every Joe’s location. “It’s difficult to be in the business of training your customers,” he said. “If I didn’t believe that this was important, there is no way I would undertake it.”

Ignite Restaurant Group also operates Brick House Tavern + Tap, and as of right now, Blanchette said there’s no plan to get rid of tipping at those establishments.

[04 commemorative]

prices going up 10 to 15%.....seems like the amount "less" people will be paying is not worth talking about. I know I would probably leave a tip anyway if service was good.....never been to a Joes.

[Black94lt1]

I would probably leave a tip anyway if service was good.....never been to a Joes.

Yep, you've never been to a Joe's, crappy seafood and subpar service!

[04 commemorative]

well there you have it lol

[Kerrmudgeon]

What a crock of crap! Ask anyone who's been in the hospitality industry from the service side and you'll get the same answer. First, it removes all incentive to be the best that you can be for the server.....no sense in busting your butt...it doesn't earn you any more money. :bilmem:
Second, as a consumer, it takes away all my discretion about the size of tip. You pay 15% more but you may get terrible service.:toetap:
Third, a good server can make a few hundred dollars, mostly tax free, on a good night. No one who clears 20-30$ an hour is going to be very happy. I'd be giving notice asap. The good ones also turn tables faster so it increases sales.

Just an overall bad idea. :slap:

Another board room decision no doubt. :ball:

[04 commemorative]

so why do most servers complain they only make $2.00 bucks an hour? :confused5:

[69camfrk]

You know why crabs make such a great snack????? Cause you can eat 'em right out of the box!:D:leaving:

[VITE1]

It's their business. As long as they are not required by law to do this. If it works , good. If it fails it their money.

[Bill]

What a crock of crap! Ask anyone who's been in the hospitality industry from the service side and you'll get the same answer. First, it removes all incentive to be the best that you can be for the server.....no sense in busting your butt...it doesn't earn you any more money. :bilmem:
Second, as a consumer, it takes away all my discretion about the size of tip. You pay 15% more but you may get terrible service.:toetap:
Third, a good server can make a few hundred dollars, mostly tax free, on a good night. No one who clears 20-30$ an hour is going to be very happy. I'd be giving notice asap. The good ones also turn tables faster so it increases sales.

Just an overall bad idea. :slap:

Another board room decision no doubt. :ball:

That same argument could be made by most employees at most companies. The difference here is, since virtually all restaurants work on the tip system for waiters, there's a super easy option for those good waiters to jump ship, and I think you are right, they will, vs. taking a pay cut.

I remember when I was a youngster, I was a claim adjustor, and my co-worker told me his brother, who had a degree, was a waiter in a higher end restaurant, and made significantly more than we did, working at entry level professional jobs.

[Aerovette]

Stupid idea. Simply pay the servers minimum wage like they SHOULD be getting and let the tips be theirs based on service and NO pooling of tips.

All I see here is "Sure the prices went up but at least the motivation for good service was removed".

[Broken Wind]

If big hooters are involved, I'll leave a tip anyway.

[6spdC6]

Stupid idea. Simply pay the servers minimum wage like they SHOULD be getting and let the tips be theirs based on service and NO pooling of tips.

All I see here is "Sure the prices went up but at least the motivation for good service was removed".

How right you are we eat out a lot and its fairly easy to see if they all pool their tips or the wait person gets to keep their tables tips for themselves. (Of course most wait staff do cut in the buss boy and or hostess, but done that way it does not come out of the GENERAL tip fund right off the top!)

[NeedSpeed]

front-house turnover rates are higher than 100%


How do more than all your employees leave? :lol:

so why do most servers complain they only make $2.00 bucks an hour? :confused5:

Because in a tip system, that is their hourly wage. They get a $2/hr check along with their tips.

I've never understood how this gets around minimum wage laws. The idea is that tips cover the "minimum" though it's a completely voluntary system.

[Bill]

How do more than all your employees leave? :lol:


It's calculated on an annual basis. So, if you have one job, and one person quits and another is hired who lasts the rest of the year, that's 100% turnover. If you have one job, and two people quit, while the third employee finishes out the year, that's over 100% turnover.

[Admiral Blue]

You are ALL missing the point...in today's society, WHY would we want a system that rewards hard work? :slap::leaving:

[Kerrmudgeon]

Who the heck makes 2$ an hour? Typically servers who get tips get paid about 2$ less than those who don't. Unless you're a stripper where you pay the house and keep all your tips! :yesnod::boobies:

Servers and bar staff up here make 10$ an hour, plus tips. :thumbs:

[Bill]

Who the heck makes 2$ an hour? Typically servers who get tips get paid about 2$ less than those who don't. Unless you're a stripper where you pay the house and keep all your tips! :yesnod::boobies:

Servers and bar staff up here make 10$ an hour, plus tips. :thumbs:

US Law:

What is the minimum wage for workers who receive tips?

The Fair Labor Standards Act (FLSA) requires payment of at least the Federal minimum wage to covered, nonexempt employees. An employer of a tipped employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the Federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the Federal minimum hourly wage, the employer must make up the difference.

[Aerovette]

How right you are we eat out a lot and its fairly easy to see if they all pool their tips or the wait person gets to keep their tables tips for themselves. (Of course most wait staff do cut in the buss boy and or hostess, but done that way it does not come out of the GENERAL tip fund right off the top!)

Way back when I was 15, and bussing tables, our waitresses did not pool tips and each one cut in the bus boys. We figured out right away who got the best tips and it was always a race to bus their tables first and fast. At the end of the night, the more they made, they more they gave us. At 15, I was making 2.15 an hour so getting handed a 20 dollar bill at the end of the night was pretty cool.

Another really cool perk was that the place served prime rib which has to be kept rare to medium rare. Once it started to reach the medium or medium well point, it was pulled from the server and placed in the kitchen for us to split. I have never eaten so much incredible prime rib in my life. :D

[onedef92]

I haven't eaten there in a few years. Then again, Louisville's too far away from the Atlantic Coast to get truly fresh-tasting, authentic seafood, IMO.

We do have Dave's Fish House and Mike Linnig's Restaurant which has outstanding fresh water offerings like alligator snapping turtle, frog legs, crawdads and catfish.

[Bill]

I haven't eaten there in a few years. Then again, Louisville's too far away from the Atlantic Coast to get truly fresh-tasting, authentic seafood, IMO.

We do have Dave's Fish House and Mike Linnig's Restaurant which has outstanding fresh water offerings like alligator snapping turtle, frog legs, crawdads and catfish.



Is there a nuclear power plant nearby?

http://www.tvworthwatching.com/contributors/2012/02/12/Simpsons-fish-Blinky.jpg



::D

[yell01]

What a crock of crap! Ask anyone who's been in the hospitality industry from the service side and you'll get the same answer. First, it removes all incentive to be the best that you can be for the server.....no sense in busting your butt...it doesn't earn you any more money. :bilmem:
Second, as a consumer, it takes away all my discretion about the size of tip. You pay 15% more but you may get terrible service.:toetap:
Third, a good server can make a few hundred dollars, mostly tax free, on a good night. No one who clears 20-30$ an hour is going to be very happy. I'd be giving notice asap. The good ones also turn tables faster so it increases sales.

Just an overall bad idea. :slap:

Another board room decision no doubt. :ball:
That would be a major pay cut for my servers. On a Friday/Saturday night my girls easily make $200-$300 working 5-6 hours. You do the math, it's easily $40+ an hour. This is a ploy by the lazy to get the same pay for less work.
How do more than all your employees leave? :lol:



Because in a tip system, that is their hourly wage. They get a $2/hr check along with their tips.

I've never understood how this gets around minimum wage laws. The idea is that tips cover the "minimum" though it's a completely voluntary system.

In IL my servers get $4.65/hr and they have to claim enough tips to bring it up to minimum wage ($8.25) or we have to adjust it to that to equal it.


What Joe's is doing is raising prices to increase the bottom line and they'll hire less staff because it won't matter.

[MrPeabody]

US Law:

In California, servers make full minimum wage and tips. They can be forced to pool and share tips with cooks, busboys, etc., although this is rare as far as I know.

[MrPeabody]

That would be a major pay cut for my servers. On a Friday/Saturday night my girls easily make $200-$300 working 5-6 hours. You do the math, it's easily $40+ an hour. This is a ploy by the lazy to get the same pay for less work.


In IL my servers get $4.65/hr and they have to claim enough tips to bring it up to minimum wage ($8.25) or we have to adjust it to that to equal it.


What Joe's is doing is raising prices to increase the bottom line and they'll hire less staff because it won't matter.

Judging from the several Joe's that I've been to, the waitstaff are mainly very young entry level people. Service was okay, as was the food. It's like the Applebee's of seafood. I doubt if many there are making a career out of it, and from what I saw, they probably shouldn't.

[NeedSpeed]

In California, servers make full minimum wage and tips. They can be forced to pool and share tips with cooks, busboys, etc., although this is rare as far as I know.

I know in MS some of the Casinos pool tips between servers and dealers.