eli5 How did the US service industry become so reliant on consumer tips to function?
In: 5994
While I am sympathetic to the needs of workers, there is an insidious side to tipping that explains perfectly why the US in particular is so reliant about it and why it seems that the standard tip increases at regular intervals (10% when I was a kid, 12%, then 15%, then 18% and now 20%).
When you tip, you are covering that worker’s wages. A tip is a direct subsidy from the consumer to the business. You pay more with each passing cycle because the wages the restaurants pay hasn’t increased since 2009. Now even places like subway and Chipotle have tip jars. They didn’t ask for tips years ago.
By capitulating, the tipper ensures that there will always be more workers willing to take such a shit deal and nothing will ever change, because tipping enables the entire thing.
I’m not advocating that nobody tips, but if everyone stopped tipping, these workers would demand higher wages and leave if they didn’t get them. Then the restaurants would have to raise wages or go out of business.
Now if the price of the food increased as a result, then the price is clearly stated and, in the end, you pay the same amount. The difference is the pay is more steady and it puts an end to the entire practice.
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