Well, I've read all 8 pages on this subject, so here's my 2 cents worth: (no tipping) LOL
I always tip with cash directly to the server at restaurants. I never add it to a credit card because how much does the server actually get of this tip?
I had my first experience with automatic adding a tip on my credit card at the SubWay!!! I was so shocked to see the screen come up asking for 15%, 20%, 25% or custom tip! I just hit the less tip but on thinking about it, I could have put zero on the custom tip, maybe? I really don't think there should be tips for fast food servers, and in the future I will check out how to delete the tip from those preprogrammed machines. I think this tipping thing is getting out of hand and I won't tip for fast food!
As someone who worked their way through college, sweating it out in restaurants (90's), here are a couple of observations;
Servers in high volume restaurants are taxed on their tips. At the time I was doing it, the best servers would actually get a bill for tax owed rather than a paycheck. Don't feel bad for them; I bussed tables at a big steak house and I would commonly get $40-$50/night, and that was a small percentage of their tips.
As stated above, servers tip out the supporting staff - bussers, cooks, dishwashers, then report they are doing this so they don't pay tax on that. The supporting staff is supposed to report these tips and pay tax on them - I never did. I won't say nobody does, but nobody I worked with did that I know of.
How does the restaurant know how much they are getting in tips? It's on the receipt if you pay by CC, but if you pay cash (rare) they estimate 15% - and we all know that is low.
What do you do if your server is awful? Tip the bussers direct if you can (they would get more that way than they will for the server, even if you tip them 10% instead of whatever you would have given the server), and let the manager know you are stiffing the server - then do it! If they are awful for you, it is rarely an isolated incident. Some people just should not be waiting tables.
It's good money, especially for the flexibility of hours I needed going to school. The big thing I learned is that I don't want to work in restaurants. It is NOT, I repeat, N-O-T a place you should be working if you are trying to support a family! The hours are usually sporadic and the management (at least the places I worked at) would purposely keep your hours below the threshold where they had to offer benefits. I hear you, but people do support families busing and waiting tables. Well, they shouldn't. The push for minimum wage to be a living wage only puts states like CA in a death-spiral of inflation, and that hurts minimum wage earners more than anyone. The millionaires that own the restaurants just raise the prices so they get their cut first. Raising the minimum wage does not hurt them one bit.