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Joe's Crab Shack reverses no-tipping policy

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Six months after launching a no-tipping trial run, Joe’s Crab Shack is reverting back to its old system.

During the trial, the restaurant chain raised menu prices at 18 test sites and reportedly gave higher, fixed wages to its staff in lieu of tips.

However, company research found 60 percent of customers did not like the tipping change. They wanted to inspire good service with their tips and they didn’t trust management to pass on the money to its employees, CEO Bob Merritt said in a conference call.

Read more from The New York Times.

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