The industry decides that profits come before everything else.
Exactly. So why do you think they are happy to let their margins go out the door?
A business is always incentivized to get paid as much as possible. Tips, however, are not paid to the business. They are paid directly to the workers. This means an, often substantial, loss in potential revenue for the business and thus is a huge loss in opportunity for the business.
Again, what business willingly turns revenue away? The answer is no business willingly turns revenue away. Where did you even get the idea otherwise?