At Joe's Crab Shack, tipping could soon be a thing of the past

For those who enjoy seafood served in a casual environment but hate having to tip, Joe's Crab Shack could soon be your new favorite chain.

There are 130 Joe's Crab Shack locations across the United States, and 18 are testing out a new no-tipping model, with servers receiving a higher, fixed hourly rate. Ignite Restaurants CEO Ray Blanchette said menu prices have been raised "slightly" at these locations, due to additional labor costs, but the increases are "typically less than the average 20 percent service tip." While patrons can elect to still leave cash if they want, credit card receipts at those restaurants no longer have a tip line.

The federal rate for tipped workers has been $2.13 an hour, plus tips, since 1991. The advocacy group Restaurant Opportunities Centers United (ROC) told ABC News there are 3.3 million tipped workers in the United States, with the median wage, including tips, at about $9 an hour. Blanchette has not revealed what the new increased hourly wage for Joe's Crab Shack servers is now, but said the chain believes that "consistently great service should always be included in the menu price, so we are taking the responsibility for paying the service staff. I personally believe tipping is an antiquated model and you have seen most businesses in America migrate away from it over the last 50 to 100 years." Blanchette did not say when the no-tipping policy could spread to other Joe's Crab Shack locations.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up