>>These Establishments wouldn't survive in these areas, for one hardly anyone carries enough cash to pay their tabs. >>
Ummm.....the tab can be split using separate credit cards. Some restaurants will not split more than xx # of ways during peak periods, like downtown rush hour when office workers crowd in between 11:45a and 1:30p, which is understandable.
Virtually all restaurants in Northern CA apply an automatic service charge of 18-20% for large parties. It's usually set at 8 diners but I have seen a very small restaurant make it 6 people because they only had 5 tables in the place!
For us it depends on who we're with. With my family, one of us will pick up the tab. We figure it all works out even in the end, LOL.
If we're with certain friends who we know don't have as much discretionary income as we do, we pick up the tab.
When I was younger, I was taken out to some fabulous upscale restaurants by older friends who had the kind of $$$$$ I could only dream about then. I used to stress about being able to reciprocate, and then I read this very smart article that discussed this issue.
It said, "Accept with gratitude, and say a sincere thanks. Send a card, or flowers if you want. But the best thing to do is carry the gift forward. When you're in the position someday to be generous to others, do so."
Now that we are in the position to be generous, I concur 100% with the sentiment. We have a very, very generous amount of discretionary income every month, which most people don't. We are very fortunate, and know it. When we enjoy something, it's even more fun to share it sometimes with friends. If they can't afford it and we can, then why not pay for everyone?
We can't take it with us. We remember very vividly having to budget, search for bargains, save for gifts and vacations. We suffered a bankruptcy in our mid-40's when our RE partner went under in one of our periodic RE crashes. We recovered financially after years of careful planning. It makes us happy to lift our friends' lives a little, the same way such kindness was given to us many times.