HOUSTON – Joe's Crab Shack parent company, Ignite Restaurant Group, said that it is testing a new policy across the country and could be instituting it in Houston soon.
The casual seafood chain has eliminated gratuity in 18 establishments since August.
It's not here in Houston yet, as the chain is just testing the program.
With more than 130 locations nationwide, this is the first major restaurant chain to put a no-tipping system to the test.
Raymond Blanchette, Ignite's president and CEO, issued a statement Wednesday, saying:
"It's simple, really. We believe that consistently great service should always be included in the menu price, so we are taking the responsibility for paying the service staff."
He tells investors that this should raise the bottom line and increase wages for staff to $12-14 per hour. The company plans to raise menu prices to compensate for the higher wages.
Blanchette said there is no timeline to eliminate tipping in every Joe's location.