I remember asking a restaurant owner about this in California, before the ways of the US of A were better known to me. Why should we tip so high and you pay so little in wages. His response was 'I pay the rent and the electricity and utilities on this place so that the staff can come here and earn a living in tips'. He really pictured himself as being some magnanimous landlord letting the serfs work his business and catch crumbs.

Evidently shit has gotten even crazier about this since I was last over.