I like the idea of outlawing tips for the reasons you provide, however… the last time I talked about tipping and running a restaurant (I do tip, I don’t run a restaurant) I got tore apart, so I’m trying to think how to approach this discussion.
I should also mention that my wife works at a restaurant that pays everyone minimum wage or above, and tipping is discouraged. If a diner insists on tipping, it’s shared around with the people on staff that day. Management never touches it, and it doesn’t end up counted as income on taxes since it never amounts to over $600 in a year, since most people don’t insist on tipping.
At this point tipping is pretty entrenched in most dine-in restaurants (and other places).
The owners are allowed to pay sub-minimum wages on the understanding that the servers can make up the difference – and potentially exceed it – through tips.
If tips are outlawed, the owners will have to make up the difference, even the ones that aren’t already skimming/taking all of the tips.
Prices will go up. But prices are going up anyway.
The waitstaff that were making more than minimum wage through tips will suddenly find themselves in a shortfall situation.
Of course the ones that weren’t being well tipped will see an increase in their pay, so it’s certainly an upside for them.
How is it working out for the EU countries that have outlawed tipping?
