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Joe’s Crab Shack Reportedly on the Verge of Bankruptcy

Joe's Crab Shack
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Our friends at The Consumerist did some digging and found that Joe’s Crab Shack might be on the verge of bankruptcy.

The chain, which is a seafood lover’s paradise, has been struggling for the last several years with sales. Part of the problem stemmed from a no-tipping policy that was in place.

From The Consumerist:

Under the policy, the company said it would implement a new set wage practice. Servers were to be paid at a rate starting at $14/hour based on their past performance. To generate the revenue needed for the new wages, the company is executing a 12% to 15% increase to the restaurant’s menu.

That experiment didn’t last long. Only six months went by before the company went back to the old tipping standard. People were just not happy with the added cost of their meals.

I called the Joe’s Crab Shack location in Lubbock store and a gentleman who identified himself as a manager told me that they were not aware of any problems or a bankruptcy and it’s business as usual.

Let’s hope that is the case and we can all eat crabs there for many years to come.

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