Waitstaff no longer have to fear the wrath of bad tippers, at least at Joe's Crab Shack.

The beach-themed restaurant chain began testing a no-tipping service policy in more than a dozen stores in the last few months, CEO Raymond Blanchette says.

Calling the practice a "forward-thinking policy" during an earnings call last week, Blanchette explained that traditional tipping methods were "antiquated" and fostered and overly competitive environment for workers.



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