I will defend the tip system. During my long life I worked a lot of different jobs, including those of a busboy and waiter. As a waiter, I made good money for the hours I worked. Not every job justifies the same pay for everyone. Employers use different methods to encourage productivity. Many people, such as salesmen, are paid by commission because that is the best way to maximize sales . Even employers in union shops, including the steel industry, use piece-rates in certain jobs. Unfortunately, there are far too many people who try to get by doing as little as possible and employers must find a way to get them motivated. This applies to food servers.
A good waitress knows that her pay is determined by how many people she serves, how much food they buy and how happy her customers are. The same things that benefit her also benefit her employer which makes this compensation system work so well.
There are restaurants who simply add a gratuity to the bill, but this is also a motivator much the same as a voluntary tip since the more a waitress sells the more money she makes in tips. Further, every waitperson knows that even when the gratuity is included in the bill, excellent service is often rewarded with additional tips. Tips are a great motivator which is why I defend them.
There is one thing I must clarify. Apparently some contributors to this thread believe that waitpersons are not guaranteed minimum wage by the employer and can end up earning as little as $2.13 an hour. This is not true. This is from an article I posted on this site some time ago:
Question: Is it legal for waiters and waitresses to be paid below the minimum wage?
Answer: According to the Fair Labor Standards Act, tipped employees are individuals engaged in occupations in which they customarily and regularly receive more than $30 a month in tips. The employer may consider tips as part of wages, but the employer must pay at least $2.13 an hour in direct wages.
An employer may credit a portion of a tipped employee's tips against the federal minimum wage of $7.25 per hour effective July 24, 2009. An employer must pay at least $2.13 per hour. However, if an employee's tips combined with the employer's wage of $2.13 per hour do not equal the hourly minimum wage, the employer is required to make up the difference.
The employer who elects to use the tip credit provision must inform the employee in advance and must be able to show that the employee receives at least the applicable minimum wage (see above) when direct wages and the tip credit allowance are combined. If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the minimum hourly wage, the employer must make up the difference. Also, employees must retain all of their tips, except to the extent that they participate in a valid tip pooling or sharing arrangement.
The above information can be found at the following link:
http://www.dol.gov/wb/faq26.htm
Conclusion: Employees must pay each tipped employee $2.13/hour. This is so even if the employee makes $100/hour in tips. However, if the employee's tips plus the $2.13 is less than the minimum wage the employer must make up the difference. In the end, each employee gets at least the Federal minimum wage. Of course some states have a minimum wage which is higher than what the Federal law requires.