SnoopyFan - no question, every-man-for-himself is the best way. In any business, there will always be people who work harder than others, and in the restaurant business, that’s even more so. Think about all the times you’ve had crappy service in a restaurant - tip-pooling is fairly uncommon, so chances are good that your server was depending on his or her tip that evening.
When I started serving, minimum wage for servers was $2.01 an hour. Fifteen years later, when I “retired,” it was $2.13 an hour. Twelve cents in fifteen years! As others have mentioned, restaurants assume you will meet at least minimum wage with your tips.
Not only do most servers have to tip out to bussers and bar (and in some places, host staff), we are also taxed on our sales. We are required to report our tips. MOST servers will underreport, and MOST restaurants will allow that to a certain extent, but standard practices are based on assumptions. The IRS assumes you have made AT LEAST 8% of your sales in tips, so if you ring up $100 in sales in five hours of work, you will be taxed on $18.65 — $10.65 in wages plus $8 in tips. Since a decent server will usually make $15 on that $100 total ring, there’s also the assumption that the IRS is giving us a bit of a break. However… 100% of credit card tips are reported by the restaurant (after all, they’ve got it in writing right there on the credit card slips, so a server can hardly claim they didn’t make that money!) If a server routinely claims only 8% of their total ring, the IRS will take a very close look at that person’s credit card receipts. Servers are audited by the IRS a LOT (and contrary to popular belief, we are not allowed to claim pantyhose as a deduction.)
As for what servers really earn, I can only speak from my own experience. The last year I worked full-time as a server (1996), I earned around $40,000 for the year after taxes, including wages and tips. It IS possible to earn a decent living as a server, but you do have to work hard for it. As many have stated, there’s a huge chunk of people who simply do not get the concept of tipping, and another huge chunk of people who think tipping is charity and that they are being extremely generous when they leave a handful of change. Please remember too that the work servers do “off the floor” is work they do not get tips for - this includes kitchen prep, sidework, set-up and break-down. It is customary for day servers to be in the building at least an hour before the restaurant opens to set up, and for night servers to be in the building an hour or two after closing to clean up and break down.
And finally, the OP: bunch of assholes, if you ask me!