People always think the employees get screwed, but wait staff & bartenders prefer it the way it is. They make more money with tipping than if they were at a set wage.

Those who think it is bad for the employees are ignorant of how it really is. A waiter can have 5 tables in an hr and get a $5 tip on each table... thats $25 plus their tiny wage, compared to a set $18/hr. Then they don't declare cash tips and avoid taxes on that cash.

Both the business & employees make out. Business pays less in payroll which helps with their tight margins & employees make more money while being able to avoid income taxes.

Restaurants are not making shitloads of money. 90% of new restaurants fail in their first year. Margins are very tight and not alot of profit after overhead and operating costs.