Joe’s Crab Shack: No-Tipping!

Joe’s Crab Shack: No-Tipping!

According to Ray Blanchette, the CEO of Ignite Restaurant Group, Joe’s Crab Shack is going to test no tipping and higher hourly wages for its workers in 18 locations across the country.

“Not timeline has been established as to when other locations may be included,” Blanchette said. “Again, this is a pilot program and has not been rolled out nationally.”

This news comes following a disappointing quarter, in which comparable-store sales dropped 6.6%.

In addition to boosting the minimum wage of impacted locations’ employees to $12 per hour, Joe’s Crab Shack is increasing menu prices around 12 to 15%, according to Restaurant Business.

Justifications to (and not to) revisit your pricing model. In this article I discuss various situations where it makes to consider adjusting prices and situations when it should be avoided.

Written by

Matthew Wilhelmi is a Business Consultant at Individual Advantages, the parent company of YourBizDr.Com. Matthew is an entrepreneurial minded professional who works well with complicated business strategies and excels in developing and implementing operational processes to achieve business goals.

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