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Tips or No Tips? Which system is better?

I'm curious to see a study which compares and contrasts the pros and cons of tips (as far as tipping waiters, bartenders, etc.). When many Europeans visit the States, they're often times confused by the concept of tipping. In their native countries, the "tips" are already built in to the overall salary, which makes for a more consistent annual wage. When they hear how much waiters and bartenders make per hour here, they're often times shocked and ask how they live off that. That's when the waiter or bartender explains the concept of tipping.

I guess my question is, which is the better method overall?

I think the theory in this country is that people will work harder for the extra tip - the "bonus" at the end of his/her job. If he or she doesn't excel, they deservedly won't be tipped well and if they do excel, the tip will reflect that and continue to inspire them to excel day in and day out. However, how often is that the case? Regardless of a person's performance on the job, how often does he/she not receive the tip they so rightfully deserve? Is there a set tipping percentage most people give, where they won't budge for anybody, regardless of the quality of service? Are there some people whom are notoriously poor tippers, regardless of the quality of service? Also, what would motivate a person to work harder and perform well on a regular basis - the extra tip at the end of the job or a guaranteed decent salary for the year void of any tips?

In my opinion, I think I like the concept of tips in theory, however, I don't think it plays out very well in reality and in the end, I feel that it'd be better for these workers to be guaranteed a decent salary by year's end than have to worry about whether or not customers are feeling generous on a particular day or week.

I think this is especially troublesome when it comes to bartenders, because many of their patrons are tipsy (or worse) by the time they receive their tab. How functional is their mind from any angle, let alone the mathematical one, by that point in the evening? They may have received great service throughout the night, but they may not be able to recall that, let alone be able to mentally figure a 20-30% tip. Sure, they could use a calculator on their phone, but if they're tipsy, that may not work too well either.

Unfortunately, I feel that working for tips is just as much based on luck as it is hard work. Even if a person is extremely consistent and solid at their job, there are going to be weeks where they hardly receive any tips and other weeks when they can't believe how much they received in tips. It wasn't so much due to their having a much better week on the job performance wise. It was more to do with whom they were serving.

I also think this can create a bit of bias toward customers. If there are regulars at a particular restaurant or bar, Person A is a notoriously bad tipper, Person B is very average in their tipping and Person C is an extremely good tipper, after a while, the waiter and/or bartender may provide better service to Person C than Person B and Person B than Person A.

I guess the more I think about it, the more I feel we should do away with the tipping-system in this country and guarantee a decent salary for people void of tips. Tips are never guaranteed and with as low as these people's salaries are, they can often times live paycheck to paycheck and worry themselves sick by wondering if they'll be able to make enough tips to pay rent or pay for groceries. I think that overall, people would be less stressed on the job and through that and other factors, able to consistently perform at a high level.

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