It's one thing for a hoity-toity restaurant group in NYC to experiment with getting rid of tips. It's another for a run-of-the-mill full service chain to do so.
'Servers will be paid a wage starting at $14 an hour, though the exact amount will vary from server to server on the basis of their past performance, according to the chain’s parent company, Ignite Restaurant Group. The money to pay the waiters and waitresses is being generated by a price increase of 12 percent to 15 percent, Ignite CEO Ray Blanchette told investors late last week.
[…] Ignite expects the switch to a wage to reduce server turnover. A $14 hourly wage sounds much better than $2.13, which is the wage they’d get, sans tips, at competing restaurants, noted Blanchette. It’s also a yellow light to servers who know they’ll likely start with the least-lucrative shifts if they move to another restaurant.'
The cost should be a wash or even a benefit for patrons who would tip 15-20%, and it should also reduce contention between waitstaff about assisting at large tables. In theory, at least.
The model is being tested in 18 cities, not across the entire Crab Shack line.
Joe’s Crab Shack chain tries no-tipping
The casual-dining concept is paying servers at some stores instead of expecting customers to leave gratuities.
Interesting. Local pizza joint claims that servers "can" make around $20/hr.
Figured @ $2.13 + 18% on $100 of checks……
Still has turnover…
Yeah…is that one that lists on their menu that customers should be paying 18% on every check…I say go them.
by them I mean crab shack