I don't understand your confusion. The amount of money the customer pays doesn't change. I'll give an example: $8 item + $4 (50%) tip = $12 $10 item + $2 (20

I don't understand your confusion. The amount of money the customer pays doesn't change. I'll give an example: $8 item + $4 (50%) tip = $12 $10 item + $2 (20%) tip = $12 $12 item + $0 (0%) tip = $12 In any scenario, the wait staff's pay comes from the customer. All we are doing is, setting the price, such that you no longer calculate the tip. If the actual price doesn't actually change, you can bake in whatever you want.