I agree that it is broken.

I've heard a lot of waiters say they want tips instead of an increased hourly rate. They make more that way. I guess managemt doesn't recognize merit effectively?

I like tips as it should enforce accountability. But, I think that has long gone out the window with delivery. Most payment processors I've used for delivery have you add the tip before service is executed, so it has just become something taken for granted, and there is no feedback mechanism.

The need for customers to provide feedback directly to the waiter through tips is interesting. I guess there is some social barrier to complaining to management that this was designed to overcome.