Care to back that up? Every time I read something[1] -- reputable -- about, for example, restaurants testing out eliminating tipping in favor of paying employees a livable wage, they have to implement a mix of cutting staff (and making existing staff work harder), increasing prices (sometimes beyond the 18% you'd expect based on a common tip amount), and reducing quality of ingredients (or finding ways to consolidate menu items to reduce the variety of ingredients or increase scale).
[1] https://www.nytimes.com/2016/12/13/dining/restaurants-no-tip...