I think you're misinterpreting GP's intention. People generally don't want the tips to be gone so that they pay less. People want the tips to be included in the price so that when they buy something they know how much they're paying.
In the current system restauranteurs skimp on wages because they know workers make up for it with tips and hence are willing to work for dirt-cheap wages. But it's not like the restaurant business actually benefit from it, because supply and demand is still determined by how much patrons pay in total. If they charge more up front (along with everyone else), and just give a larger portion to workers, they'll still make the same amount of money.
We're stuck in a shitty local minimum that benefits nobody.
> ... supply and demand is still determined by how much patrons pay in total. If they charge more up front (along with everyone else), and just give a larger portion to workers, they'll still make the same amount of money.
I don't think I agree with this. I believe it's a form of psychological manipulation where you get a foot in the door by offering lower upfront prices and then guilt people into paying more. Same reason why car dealerships try to sell you on a million add-ons.
In the current system restauranteurs skimp on wages because they know workers make up for it with tips and hence are willing to work for dirt-cheap wages. But it's not like the restaurant business actually benefit from it, because supply and demand is still determined by how much patrons pay in total. If they charge more up front (along with everyone else), and just give a larger portion to workers, they'll still make the same amount of money.
We're stuck in a shitty local minimum that benefits nobody.