I'm genuinely curious, why are tips paid in percentages? Like why does it matter what the food costs, if they're being served in a similar plate?

Let's say you start a pizza restaurant, then I come up to you and say, I'll drive those pizzas to people's houses and ask them to pay me, you don't need to pay me. There's no reason not agree to that, everyone gains, including the person who pays slightly more, because of the convenience of the food coming to their house.

I imagine it started in a similar way at bars/restaurants. Hey owner of restaurant, I'll run around getting orders, and deliver the food/drinks to people, and they'll pay me for the convenience of not having to get up, it costs you nothing, we all gain in this voluntary enterprise.

Now, it's a custom, and it isn't appropriate everywhere.

/r/answers Thread Parent