eli5 How did the US service industry become so reliant on consumer tips to function?
In: 5994
It’s not the service industry, it’s restaurants.
And the actual answer is the Great Depression and Prohibition.
The owners couldn’t afford to pay their staff enough so they became dependent on tipping. Tipping had been seen as unamerican (it originated amongst European gentry) but became a sign of generosity and being able to have enough money to do it.
After the Great Depression ended, it had become established practice.
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