People's critique of tips being a good idea for waiters is based on a misunderstanding.
- People's critique of tips being a good idea for waiters is based on a misunderstanding.
- The common critique is that "everyone tips the same anyway" so the tip doesn't drive differential service.
- But the real benefit is that tipping (of any amount) now gives a structural incentive to the waiter to provide speedy service.
- The more checks they get, the more bonus they get.
- But the tip itself makes sure they don't rush the customer to turn a table; if the table feels rushed, they're much more likely to leave a smaller tip.
- As a result, the service is incentivized to be more attentive than it would otherwise be.