Joe's Crab Shack announces it will drop practice of tipping at its restaurants
LOUISVILLE, Ky. (WDRB) -- Joe's Crab Shack has announced that it will drop the policy of tipping servers at its restaurants.
The restaurant chain is testing out a new model called "No Tipping." Credit card receipts will no longer include a tip line. Instead--employees will be paid $14 an hour.
It's happening at 18 Joe's restaurant's across the country, but not at the restaurant located on Louisville's waterfront.
Because of the shift, Joe's Crab Shack says it will increase the price of its menu items by 12 to 15 percent.
The company's CEO says that tipping has lost the value it once had.
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