I used to make the same argument about subsidizing restaurant owners then I graduated high school, went to college and took a course on economics."Tipping" is a public subsidy. The federal government allows restaurateurs to pay wait staff less than minimum wage and we subsidize the rest of their pay. It's not about honoring work ethic or about showing off. It's 100% a reminder that the federal government is OK with people being paid less than they should because they can get us to cover the difference in tips....which then becomes taxed twice. Once when I got it and again when I give it as a tip. The whole thing pisses me off.
.![]()
Right now the going wage for a fast food worked in my area is $15.00 +/-. When you buy a Big Whopper, the cost of all the $15/hr workers is factored into the price, which is why the burgers cost nearly $8.00 now, and a burger and a soft drink can be over $10.
If sit down, table cloth restaurants had to pay the same wage, the owner is simply going to factor that cost in the cost of goods sold - your food. So you are going to meet the wage expectations of the worker one way or another. That's not a justification for the tipping system, which is inherently stupid and inefficient, but you are not "subsidizing" anyone through tips.
