Joe's Crab Shack Restaurants Test No-Tipping Model

Beach-themed restaurant Joe's Crab Shack recently began testing a no-tipping service at more than a dozen locations around the country, CNBC reports.

CEO Raymond Blanchette called the move "forward thinking." He said traditional tipping is "antiquated" and promotes unhealthy competition among staff members.

"Servers, hosts, bartenders are paid now higher, fixed, hourly wages," Blanchette said during an earnings call last week, according to CNBC, "and it's expected to result in an improved team atmosphere, a significant reduction in turnover and greater financial security for the employees."

It comes weeks after restaurateur Danny Meyer announced all 13 of his popular New York City eateries will do away with tipping.

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