I'm not sure about actual fancy restaurants, but talking about fast food restaurants there's a large difference. For example lets take McDonalds, in the UK a BigMac is £2.49 at most McDonalds. In the US, I've been told a BigMac will cost you $1.99, which is roughly equivalent to £1.35. In the US, they get food about half the price as well as get bigger portions in general. In the UK I order a large BigMac meal for £3.99 and I feel just about full, in the US I order a large BigMac meal for $3.29 or something and bam I'm full before I finish my fries. I can't compare with restuarants in the US because I've only ever gone to fast food places in America, but this comparison is pretty obvious to me.
This could all be solved simply by the restaurants here in the US simply charging a little more per item and paying their server employees at least minimum wage, but realistically it should be higher - and before you go saying that serving is an entry level job for 16 year olds, you need to be at least 21 to be allowed to serve alcohol. And to those making the "incentive" argument that if we didn't use a tipping system for servers, their service would decline - there are places in the US now voluntarily doing away with that model and paying their employees standard hourly wages, and they have been largely successful. Once such example is below, a restaurant in Philadelphia paying their servers $15 per hour plus benefits: Log In But the article and some of the additional articles linked within it bring up some even more important points. The actual tip an individual receives for waiting on a table isn't always based on the quality of their service, nor is the guests experience entirely under the servers control. So they are often subjected to discrimination if they are not some physically attractive, young, white woman - not to mention, if orders are running long, or the restaurant is out of certain items, etc... those are the fault of the kitchen or the management, not the server, so why should they be the ones losing out on wages as a result?
My sister used to be a server and would make decent tips, because she's a people person and would go out of her way to make the meal and experience a good one. I thought she was making decent money, but then I found out she was barely being paid, other than tips. I wouldn't mind if we in the U.S. switched to minimum wage plus optional tips, which is what they are supposed to be, not almost their entire paychecks. That way, people could tip for exceptional service, and not tip if the service wasn't good, which could serve as incentive for servers to work harder and provide better service.
If by automatic tipping you mean gratuity than that's fine. It just makes sense. If you mean I'm sitting at a table with my guy & we're eating & that tip is printed on the bill regardless of my service? No, that's not fine.
I think you have to sometimes appreciate where you are and factor it in accordingly - almost like a surcharge. I appreciate that it's common custom in the US, but it's not common custom for the vast majority of the world, albeit more tips are being added/assumed in many places (e.g. in the UK). But if you were in Japan and you left a tip, they would be offended. It's simply not done and is viewed as a sleight on them and the service they've provided. So I wouldn't say universally "add a tip" because it doesn't apply everywhere.
Usually I would add a tip based on how the service was handled and how the server was in regards to everything. Most of the time if it was amazing, i would tip up to 30 percent of the bill, on average it could be 15 to 18 .
Firstly, the restaurant managements should pay minimum wages to the waiters/bartenders or other catering staff. The exploitation must stop. If a waiter/waitress does good job, I'd a tip surely. A tip should be a token of appreciation and not a compulsion. Having said that I'd more often than not tip a waitress liberally. I'd, however, discuss the service tax element.
I was one of the ones making the incentive argument, but I was basing it on paying servers minimum wage instead of tips, not $15 per hour plus benefits. Big difference there. It's true. Way too many times, servers take the brunt of the angry customer's wrath via their tips, due to things that they have absolutely no control over. The waitress didn't cook your steak, folks. She'll be happy to take it back for you, but put the blame where it's due. It's sad to think that some servers may not make enough just because they don't look like Barbie. It's crazy that people can be that shallow. Good thing they don't get to choose how much people make in other industries.