Friday, May 13, 2016
Public relations recognizes that the public decides on the reputation and validity of individuals and businesses. That is why this failed experiment was an act of public relations. Joe's Crab Shack tried to do away with tipping but the public would not go along. The reason for the failure is partially due to a mistrust that the restaurant chain would pass along slightly higher prices to servers and kitchen staff. That cynicism is well founded based on the behavior of corporations over the years. So, Joe's is cutting back on the number of restaurants with a no-tipping policy. It makes no difference that Joe's staff was better paid as a result of no-tipping. Customers want to retain the right to determine who gets tipped and how much. The oddity here is that other restaurants have successfully implemented a no-tipping policy, and there doesn't seem to be a diner's revolt for doing so. Could it be that the socioeconomic status of citizens makes the difference? It will take time to find out. Meanwhile, the public is speaking and Joe's is listening.