A new trend may be quickly emerging in the restaurant industry: banned tipping. Some restaurants have implemented a no tipping policy which means big changes for everyone. Joe’s Crab Shack is one of the first major chains to eliminate tipping. They expect to see many positive changes within their team, but how will this affect everyone else?
With this policy in place, rather than walking away each night with tip earnings, servers will now receive an hourly wage in the form of a paycheck. This may protect some servers, but what about those servers who are accustomed to receiving more than their new hourly wage?
Menu prices will be higher with this policy in place, but will the quality of service remain the same? Now when you are making plans to dine out, you will have to consider whether or not you would like to support a company with a no tipping policy.
The cost of payroll will increase, but so will the profit margin for menu items. Will these two factors balance each other out, or leave businesses with negative revenue?
With this new policy becoming a trend, how do you think it will impact everyone from business owners to customers, and employees? As a business owner would you be willing to implement this policy in your restaurant? As a server, would you be willing to work for a company with a no tipping policy? As a customer would you be willing to dine at restaurants with this policy in place? There are still many questions centered on this debate, but Joe’s Crab Shack will soon be able to give us some answers.