13 May The No-Tipping Policy At Joe’s Crab Shack Just Sank
Posted at 06:32h in Case Studies
Turns out that people don’t mind tipping as an incentive for better service.
It was an experiment to determine whether customers would be happier not having to deal with that dastardly 15-20 percent calculation after a meal. The restaurant chain announced that food prices would rise in those locations to cover higher labor costs, and in turn, the average employee’s $2-an-hour plus tip wage would rise to $12 an hour.
Full article: http://www.huffingtonpost.com/entry/no-tipping-policy-joes-crab-shack_us_5734e6b4e4b08f96c182999a?