I am not really sure it is a ‘gift’ when it is automatically added. The waiter isn’t a friend or family either. I would prefer higher wages rather than circumvent taxes that everyone else pays.
A service charge is added to a bill when it is a large party and so the venue is put to more trouble than normal. They have to move the tables and chairs around and move them back, extra cleaning and so forth.
Service charges are not paid to the server but go directly to the venue.
If say after the event you gave each of the servers a hundred dollars because they did a great job that would be a tip.
“I would prefer higher wages rather than circumvent taxes that everyone else pays.”
Amen, and again I say, amen
Except servers really have no idea what their income will be from week to week because it’s based on the customer’s mood and/or emotions. Some ppl just refuse to tip more than 5% and servers have to wait on them regardless. The money can be great one week and then crappy the next which makes it difficult to plan a budget.