There were certainly places I worked where any credit card tips were declared for tax whilst cash tips weren't. This is one reason why staff preferred cash. Similarly in some places cash was distributed by shift whereas cards were distributed monthly based on hours worked.
As a final point, the idea of tipping the person directly is not consistent with anywhere i've ever worked. Even when distributing at the end of a shift, everyone would have put tips in the jar to be shared between staff.
Let's call a spade a spade. It's for tax evasion purposes. That's the reason that the IRS assumes that you make 15% tips on everything if you're a server. (Otherwise people would never report it and to caught the large amount would never be recovered)
I'm skeptical of even that. There are lots of jobs with a large range of quality in industries with no tipping, and the market ends up working fine as a way for the best to rise to the top. You wouldn't tip your lawyer or a freelance developer.
Why are some industries different?
What shop do you know of where they'll let you choose food, take a bite and then pay what you feel it's worth? Hmm, this donut's a bit stale, I'm not prepared to pay anything for it thanks Mr.Tesco.
Sometimes I buy fruit and it goes bad too fast. That's life. Sometimes you get a shitty waiter, that's life, but now you get to unilaterally decide you'll get that service for free? Because there's a significant minority of people who will always find fault just so that they don't have to pay.
You go to the customer service desk, say "This doughnut is stale" show your receipt along with the partly eaten doughnut, then get a full refund or exchange as you prefer.
If you're doing it daily the rules will change. :)
> this donut's a bit stale, I'm not prepared to pay anything for it thanks Mr.Tesco.
This is irrelevant. See quote from comment you're replying to.
> Sometimes you get a shitty waiter, that's life, but now you get to unilaterally decide you'll get that service for free?
No, the waiter still gets paid.
I've gotten burned a few times when buying bags of things like potatoes and onions and not seeing a bad one in the middle that had started to infect the others. Never had a problem returning. Aldi even gives money back plus a new item
I live in London. I generally pay the service charge. Once out of every hundred times I eat out, I ask them to remove the service charge as I spent ten minutes trying to get someone's attention to order, rather than talk to my dining companions.
Service doesn't make a huge different for transport though. It's either on time, clean, and takes proper route or not.