Kempczinski also noted that in many states, sit-down restaurants are allowed to pay servers as little as $2.13 per hour, a federal minimum set in 1991, with tips making up the rest of their pay.
“So right now, there’s an uneven playing field. If you are a restaurant that allows tips or has tips as part of your equation, you’re essentially getting the customer to pay for your labor and you’re getting an extra benefit from no taxes on tips,” Kempczinski said.
It’s appreciable to want to be compensated directly, however that means not all servers are compensated equally for their time. Instead of a division between labour and ownership, tipping allows division to fester between labourers.
A few places in my area have removed gratuities and raised staff compensation, and the workers there enjoy not only feeling on par with their coworkers, but also the stability of having a consistent and predictable income.
That said, it’s understandable why changing the gratuity policy might seem offensive if your example of wait staff pocketing 75% of the revenue is anywhere close to accurate. I wouldn’t want it changed either.