There is one restaurant here that went to this model and when they transitioned to this model, they put up signs in the restaurant to notify customers. The servers also make sure to make the customer aware.
Their website also has the following information: Our Fair Wage culture means moving forward, our menu prices will include a living wage, paid time off, health insurance, and the opportunity to earn a Cool Moose scholarship for those that have college or trade school aspirations. We no longer expect guests to tip our team members under this model, and if you do decide to tip them 100% of tips will go back to our hourly employees. Thank you for joining us in this innovative way to see our team members succeed economically.
I believe this is destined to fail, because I suspect whatever they consider a "living wage" is well below what a good server can make at even a mid-range restaurant like a Chili's or a Cracker Barrel.
Any server that is GOOD is going to go somewhere where they can make $20-25 an hour. This restaurant is going to only have substandard servers willing to make $15/hr or whatever capped, no matter how busy it is, and those servers are going to cover as few tables as they can get away with. This restaurant will end up with more servers per shift, and worse ones. So visitors will pay as much as they did before, and get much worse service, and the restaurant's overhead will skyrocket.
The movement to end tipping is plain and simple an attack on the working class, and the attempt to eliminate one of the few occupations left for an motivated and hard-working but uneducated person to make real, pay the bills, type of money. To get paid based on how hard you work, and how good you do at it. It's bullshit.
The vast majority of servers don't want this, to be reduced to the status of grocery store cashiers.