A bit of a rant, but I was thinking about this a bit the other day. Does anyone else think the prevalence of a wage based on tipping for servers in restaurants does not make sense and is outdated? For most other jobs, the company pays its employees, rather than having the customer or client pay a company's staff their wage.
One might argue that it encourages the server to do better work. I have not seen any evidence that tipping is primarily responsible for this, based on my experience in establishments that are not tip-based. Someone else might have a different experience, though. Generally, incentivizing an employee's productivity usually leads to good results. Why not simply include the charge of service in the food cost (like all other costs like rent, supplies, etc are factored into the price of an item) and give a portion to the servers? Or give the server a standard hourly and reward good servers with a higher pay. It wouldn't end up actually costing anymore, would simplify the restaurant bill, and would no longer be an IRS nightmare.
I would also argue that tipping is unfair in that it creates scenarios where the waitstaff make significantly more than the cooks/kitchen staff. The primary reason I go to restaurants is the quality of the food, and most establishments do not share tips with kitchen staff. So if it gets really busy, everyone is working harder, except the kitchen staff are making the same wage they always do. A couple of figures I looked up online suggest that kitchen staff make an average of about $12.12 per hour, while servers make $17.39 per hour.
Welcome your thoughts and criticisms.