If US restaurants and patrons already expect to tip 20% then the restaurants should add that to the cost of every item, increase wages, and abolish tipping as a thing.
Restaurants that can't afford that don't have a viable business.
Patrons that can't afford that shouldn't be dining out.
@seanm I think the Nash equilibrium sits at tipping required in the US. Restaurant owners contemplating this will expect the lose business because their prices are higher, convinced their competitors will still have lower prices plus expected tips.
@jerry that's a fair point. No one wants to go first.
It seems that the market either needs incentives for businesses to change or do something along the lines of revoking the minimum wage exception for tipped staff (this wouldn't directly resolve the raising all costs by 20%, though).
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