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

444 views

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

In: 5994

21 Answers

Anonymous 0 Comments

So, I’ve seen a lot of profoundly incorrect answers here derived from commonly repeated myths on Reddit. As someone who has worked in public history, I’m not surprised but I hope I can help shine some light on this interesting feature of American life.

The actual explanation can be found quite easily on the Wikipedia page concerning the [history of gratuity](https://en.m.wikipedia.org/wiki/Gratuity). In summation, gratuity was often frowned upon in the US because it was perceived as a way of ‘bribing’ the wait staff. In fact, tipping was outlawed in a number of US states (eg: Washington and Mississippi). The perception being that the staff would over serve a patron if they knew that they were being tipped. In a sense it was seen as a form of corruption. This norm changed following prohibition because the restaurant industry was losing huge revenue due to the lack of alcohol sales. So as a way of keeping wait staff employed restaurants began allowing servers to be paid a gratuity by customers. The practice became the norm even after prohibition ended and became the largest portion of a servers income.

You are viewing 1 out of 21 answers, click here to view all answers.