Having worked in the restaurant industry for over 12 years, started as a bus boy at 15 years old, then waiter, then bartender and finally moved to General Manager of the whole place. I can tell you that tipping is absolutely necessary.
I can say that the article is dead wrong about this. Tipping is the best thing that's ever happened to the US Restourant business. Especially at great establishments with repeat customers.
Here are a few reasons:
1) As an owner of a place there is only one of you, impossible for you to cook and go greet the guests and do everything to make them feel special. Your staff, the waiters the bus boys will feel like owners through tipping. If they do a shitty job they don't get paid, it doesn't get more capitalistic than that. It's the the same thing that motivates employees of startups that have equity.
2) For customers Tipping is not required if they do a shit job you don't have to tip 20%. Leave 10% or less, that's the whole point. You as a consumer have the power. Not the owner or the staff.
3) The math is a bit annoying but most places will put the math in your receipt.
4) The best establishments with repeat customers benefit from tipping the most. The waiters and staff have to treat your guests very well and it is in their best interest to keep high paying, high tipping customers happy and coming back. The waiters will complain and fight with the chef when they do a bad job that's how much they care about things going well. Their livelihood is at steak.
5) Now compare waiters in good establishments that get good tips to folks working at McDonalds. There is no comparison, the waiters are motivated the McDonalds worker gets paid no matter what and makes no tip. No extra effort necessary. For that matter compare them to any worker hat dosent make a tip and doesn't have to hustle.
Anyway, I am a bit too passionate about this but the author is very wrong on this one.
Tipping creates a common goal among the owner and all the staff it is crazy to ever think of getting rid of something that makes your employees work harder and better and is a carrot and a stick that gives the consumer all the power.