They have socialized health care and better support systems in the form of basic income/welfare. Also, value added taxes exist in many EU nations which fund these programs. The cost of goods is also higher, which generally funds the wages of the employees.

But in this case, the author is complaining about the tax law associated with tipping and not with the minimum wage hike in itself. Doing away with tipping will be great on a societal level but reforming the tax law will do a lot to keep restaurants from shutting down in the short term.