There's no reason why it can't work differently, as mentioned elsewhere, but it would require alot of change in the way these businesses are ran in the U.S. and

There's no reason why it can't work differently, as mentioned elsewhere, but it would require alot of change in the way these businesses are ran in the U.S. and there's not that much incentive. Most likely the end result would be the same as far as service goes. From having lived in both the U.S. and Australia, my feeling isn't so much that tipping is the reason why the service is better. I've had excellent service in some places in Australia and lousy service in places in the U.S. My feeling is that the management makes a point of emphasizing customer service more in the U.S. than in other places (even in businesses that don't have tips), and this is true across the board. Increased competition in the U.S. is some of it, and just plain cultural attitude is alot.