Sure, but countless other jobs are fixed salary and yet people still do a good job. Maybe it's simply a old custom to have tips at restaurants, etc. But, any other job your pay is based on your performance.
When it comes to tips you’re typically talking about jobs that perform a “personal” service, Trim YOUR hair, shining YOUR shoes, bringing YOUR meal. These are things you don’t purchase ‘off the shelf”.
“Sure, but countless other jobs are fixed salary and yet people still do a good job.”
Sure, but don’t you think immediate rewards go a long way toward promoting morale & job satisfaction (e.g. “spot bonuses”) - especially for those with good attitudes who do above and beyond what is expected?