Tips are better for the business, because it lets them price-differentiate, and thus serve more customers. The more meals a restaurant serves, the more money it gets, regardless of how well or poorly the customers tip.
Over the past 40 years, businesses had a lot more bargaining power than service workers, and have obviously optimized their operations in a way that benefits their bottom line.
If you don't like these outcomes, you have a few options.
1. You can curtail business bargaining power by empowering workers.
2. You can curtail business bargaining power across the board, by raising wage and benefit floors through legislature.
3. You can curtail the rising delta between service wages and living costs, by having someone else (the middle class, the rich, corporations, Uncle Bezos, importers, ???) pay for the difference.
4. You can curtail the rising delta between service wages and living costs, by setting price ceilings on living costs through legislature.
5. You can curtail the rising delta between service wages and living costs, by bringing costs down, via creating a competing low-cost provider through legislature.
... Or you can shrug your shoulders, and just pay your 20-25% gratuity for the exact same level of service that used to earn a 10% gratuity.