eli5 How did the US service industry become so reliant on consumer tips to function?

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eli5 How did the US service industry become so reliant on consumer tips to function?

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It lowers the sticker price of a meal just like not showing the price including tax. Restaurants run on notoriously tight margins so anything to make a meal more enticing and they will do it. Look at how the airline industry, also notoriously running on tight margins, has so many extra fees.

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