In the US restaurant owners are legally allowed to pay their staff less than minimum wage because waiters will make up the difference through tips.
Which is brilliant, because 1. they are able to show "discounted" food prices on the menu, with the expectation that the customer will end up paying an extra 20% in tip and x% in taxes on top of it 2. they can pay their staff less than they would have to otherwise.
The consumer gets screwed. The staff gets screwed. The business owner does ok, but the restaurant industry is pretty rough anyway, so it's unclear if they're laughing all the way to the bank anyway.
Which is brilliant, because 1. they are able to show "discounted" food prices on the menu, with the expectation that the customer will end up paying an extra 20% in tip and x% in taxes on top of it 2. they can pay their staff less than they would have to otherwise.
The consumer gets screwed. The staff gets screwed. The business owner does ok, but the restaurant industry is pretty rough anyway, so it's unclear if they're laughing all the way to the bank anyway.