You assume everyone tips the same way and that they are generous. Talk to people who've worked these jobs. It's not so good for them and you're assuming tipped wage vs. minimum wage, whereas the employment market could lead to higher wages than minimum. I lived through this debate in DC several years ago---when anyone does some reserach on this, they find that the tipped wage tends to be most generous at high end, high volume places. There aren't that many of them. Other than bartenders in popular bars that do a big trade in mixed drinks, the people who make a decent long-term living in restaurants work in higher end establishments. There might be well-loved local institutions where people are generous, but those probably are an exception, too.BillyGr wrote: ↑April 27th, 2023, 8:30 amPretty simple reason - many people working those jobs can make more money than they would at most jobs they would otherwise have.storewanderer wrote: ↑April 26th, 2023, 9:51 pm When I was very young and heard about that pay model I asked someone why anyone would go work in a restaurant waiting tables. I never did get an answer.
Nevada thrives on tips yet even here that wage model got canceled a number of years ago.
If not waiting tables, they would likely be working somewhere that pays closer to the minimum wage (a store or similar), and even a halfway decent waitperson in a moderate priced place will make more than that.
For instance, our local diner (where you might spend $20/person now for a dinner). Two people at the table, totals $40, so an $8 tip at 20%.
Server is handling several tables at a time, so over an hour they could be getting $32 in tips (that $8 x 4 tables of 2, possibly a bit less from some if they get just sandwiches or similar, but this is dinner time, possibly more if they get more than just a meal and a soda/similar drink or have more than 2 at one of the tables).
That is over 2x the minimum wage for NY (which is still just under $15 outside the NYC area), and also not counting the actual pay they get, even if it is fairly low (not sure exactly what that is these days, I think that was raised somewhat as well from the old $2.xx per hour level).
Stores may not pay exactly minimum either, but likely still under $20/hour (these aren't CA unionized grocery chains or similar).
If that server worked for another restaurant (even, say, a chain like Red Lobster, in an area 15ish miles away nearer to the bigger populations surrounding Albany), where meals under $20 barely exist any longer, they would get even more in tips for the same number of customers, thus even better for them.
Other problems---wage theft is very common in the restaurant business. Large chains and well-known local resturants have had to agree to huge settlements, because of this practice and the theft is based in the tips. Again, ask anyone who has worked in the business. If you're in NYC, DC, LA, LV, much of Florida, basically any place that attracts a lot of foreign tourists, tipping can be erratic at best. In most foreign countries, tipping is unknown or the custom may be to "round up" which effectively tends to be about 5% or so on average--I've lived one of these places. People without a frame of reference for US tipping customs will find the suggested tipping rates to be absurd and often won't tip, at all.