Blanchette also foresees an increased value to customers. In his opinion, customers who were inclined to tip generously will actually end up saving money, as the price increases will equal out to less than 20%.
Prices vary slightly by location, but by using the menu from its Newark, New Jersey location, a bucket of snow crabs that would usually retail at $24.99, would be increased to $28.74, assuming there is a 15% price hike in a post-tipping world. Which actually, isn't so bad.
“We’re really leading in our industry with regards to national brand going out and testing this thing in a meaningful way,” Blanchette told Restaurant Business. “So we want to be somewhat cautious.”
The initial period of no tipping is still to be considered a "test," with some stores rolling out the new program as early as this week, and most expected to make the switch by the end of the year.