why not just raise prices by 20%? or remove the "restaurant wage" and force them to do minimum wage?
Because if every restaurant doesn't do it, the one that holds out from doing it and hides the extra cost behind a noticed-on-the-menu-later surcharge (or simply keeps asking for tips) will get more business because customers have trained ourselves to sort by lowest-price-first-then-choose-that-one.
> or remove the "restaurant wage" and force them to do minimum wage?
Several states and cities don't have the tip-credit restaurant wage and do require restaurants to follow minimum wage, regardless of tips. Tipping is still incredibly prevalent in those places because it's still a way for employees to make more money without the owner having to figure out how to pay for it through prices.