Quote:
Originally Posted by ownedbycats
Just... add it to the price and pay the employees properly? 
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Back in the mid-1980s, a San Francisco eating establishment was offering wait staff US$40.00 per hour, with automatic termination if the wait person solicited tips, or accepted tips. More than once they fired a waitperson in front of the customer that tipped them. The formal policy was to make tip-related firings very public, and very obvious to the entire dining room as to why the individual was being fired.
It went out of business due to an inability to hire wait-staff.
Non-applicants claimed that they could average more per shift, working for tips only at other eating establishments. Several studies demonstrated that wait-staff at that eating establishment earned more per year, than at similar eating establishments that where wait-staff relied on tips for their income.