Tipping has really impacted the hospitality industry for a while now. It has impacted so widely that it had created a two-tiered wage system that can provide consequences for people. Tipping becomes crucial in hospitality when all staffs are just working not to their highest standards, but to the point where it is good enough to be tipped. It effects the way staffs work and the mentality of how they think. “…It called the practice undemocratic and un-American, arguing that employers, not customers, should pay their workers.”
It isn’t right that some industries provide a wage that is lower than the minimum rate. However, the impact that tipping has on staffs might boost up their service standards because their mentality would think that if they provide better service they will receive tips otherwise they are stuck on living with low wages while working. When tipping is banned in a company ,staffs might start to slack off their work as there is no ‘bonus’ in working harder or providing customers with better service since it is a fixed wage. In upper scale restaurants, tipping an individual is usually restricted so all profit goes to the restaurant. “And most tipped workers are not fancy steakhouse servers; they are women working at places like IHOP, Applebee’s and Olive Garden.”
Tipping the staffs should be banned and wages should be decent. This method allows companies to also gain more profit, even though they are spending more on labour. The average amount that staffs get from tipping contributes more than what the company looses for labour. “Hillary Rodham Clinton supports eliminating the tipped minimum wage.” If tipping the staffs individually are banned, then the profit goes to the company and this way the company gains more profit and they do not loose any money. Staffs will eventually be motivated to work as their minimum wage is high enough and they will still provide service standards that are expected within the company.
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