[hagbardgroup]

"Tips" are another word for "commission." Waitstaff are sales people for restaurants and bars.

Restaurants can certainly try to motivate their sales staff with a wage instead of paying commission, but the consequence will be that their sales people will lose motivation, be less competitive, and less aligned with the interests of customers and more aligned with the interests of management.

[piptastic]

I would say tips are another word for "broker fee" then.

If restaurants want to motivate their wait staff, they can pay them an actual commission based on sales if that's the goal.

[danieltillett]

Exactly. This is how sales staff are motivated in all other industries where tipping is not the norm.