>That's not the logic behind the tipping system. It's, "tipping incentives employees to perform well because they'll make more money for doing a better job".
>It doesn't work that way either, but that's the rationale.
Indeed. The on the ground reality is that tipping does not serve this purpose. I don't know if it ever did, to be frank. Studies[0] generally show little to no correlation between performance and amount tipped.
And the reality is that tipping is the reason invoked in many state laws for paying restaurant workers less than minimum wage. Tipping is the reason they get paid poorly, and I always find it problematic that people invoke tipping as a way to help people, when it is the cause of their low wages. In those states, tipping is a big win for the restaurant owner. The customer pays more money out of his/her pocket, and the waiter often does not get much money.
Unlike others, though, I do not consider this wage theft (even at a moral level). We don't tip for many other services that we receive, and the problem of how those workers are compensated doesn't cross our mind. Why do we insist that tipping some category of workers has a moral component whereas others do not? Fixing those laws will be a challenge as long as tipping is commonplace.
[0] Example: https://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?arti...
(Taking off my pink hat)
(Yes, I do contribute to their poor wages by tipping. Have to conform somewhat to society!)