Servers at restaurants have a unique source of income. Most people in the U.S. make a simple hourly wage or a salary. However, servers make an hourly wage of $2.13 — which is typically only used to pay taxes, most don't ever receive a paycheck — and they rely on tips as their actual take-home pay.

The controversy with this style of compensation comes here: If two waiters wait on three tables each, with the final checks averaging approximately the same for all the tables, one waiter could walk out with $75 while the other makes a measly $25. Both waiters did the same amount of work during the same amount of time, but one received a third of the pay.

Is there a way to make the system fairer?

Joe's Crab Shack introduces no tipping and set wages

Joe's Crab Shack initiated the first major change to restaurant server pay in decades. By increasing the meal prices, the restaurant has created an hourly wage for servers and removed the "requirement" to tip at several locations throughout the country.

"With the new policy, servers at the selected restaurants will now earn hourly wages of $12-$14," according to PBS NewsHour. "In order to support this new wage model, the menu prices will increase from 12 to 15 percent. Raymond Blanchette, president and CEO of Ignite Restaurant Group, said menu prices are rising only marginally with the elimination of the tip, so ultimately people could potentially pay less."

Patrons are not forbidden to tip, however. If they feel their server has gone above and beyond, they can leave a tip in addition to their bill. This way, waiters still have the ability to receive tips, but their livelihood doesn't depend on it.

This concept seems foreign to most U.S. citizens, but in foreign countries not tipping is the norm. Therefore, Joe's is bringing the European model to the U.S. But will it be successful?

Consequences of this concept

One of the concerns with a set wage without tipping is the lack of motivation on the part of the waiter. When a waiters receive a set wage, they don't have incentive to treat patrons with great customer service. Service will become subpar because no matter how bad the waiters treat the patrons, they will still receive the same wage.

In addition, some waiters might cringe at the idea of no tipping and a set wage because that set wage could reduce their take-home pay significantly. For example, when I was in college, I worked at a high-end steakhouse and brewery. At this restaurant, I could easily make $200 a night — which meant $40-50 per hour, or significantly higher than the $12 per hour set wage.

High-end restaurant wait staff typically do make more than $12-14. In fact, there are many who have turned these jobs into long-term careers because they are able to make more at the restaurant than at a "regular" job. So, these waiters — and probably the restaurants themselves — would never consider a set wage as an option.

Benefits of giving waiters set wages

The benefits of this concept are apparent at casual, low-key restaurants. Waiters at these restaurants can make decent money on any given night, but there is also the high probability they could walk out with less than minimum wage on any other given night — especially weeknights. Tips vary, and they can vary significantly.

Having such variety in take-home pay leads to financial issues. It is difficult to budget when you have no idea how much you will make on any night. By having a set hourly wage, waiters have more financial security. Financial security leads to comfortable, stable employees who are more likely to be stress-free at work.

Reducing stress at work can also reduce tensions, leading to a more cohesive, enjoyable workplace.

Will other restaurants follow suit?

With the incomes of waiters having so many variables, most restaurants are taking notice of Joe's new concept. But, there are many unanswered questions. Will other restaurants follow Joe's lead immediately? Will they follow if Joe's test run is successful?

According to Kay Corriere, an instructor at the American Public University System Department of Hospitality Management-School of Business, it all depends. She believes Joe's will be successful "if other restaurant chains follow suit." However, no one knows if other restaurant chains will follow without proof of success.

The concept has obviously shown success in foreign countries, but the entire restaurant industry in the U.S. is based on tipping. Therefore, restaurants would have to undergo a major overhaul before this concept could work.

In addition, Corriere also adds one possible result of the switch to a set wage is the transformation of the restaurant itself: "Will Joe's Crab Shack eventually become a buffet or similar to Ryan's Steakhouse where food is self-serve?" Since individuals will not be "responsible" for their own pay, will it become more of a system where everyone works towards the same goal?

"What Joe's Crab Shack is proposing is a complete paradigm shift for restaurants and operations in the United States," Corriere said.

Only time will tell if the concept is successful. And only time will tell if the concept catches on with other restaurant chains. Is it time for tipping to go out the window?