They also struggle to hire. A no-tip restaurant pretty much necessarily ends up paying their employees worse than they would get otherwise, because tipping is

They also struggle to hire. A no-tip restaurant pretty much necessarily ends up paying their employees worse than they would get otherwise, because tipping is effectively a means of price discrimination: People willing to pay more pay more and people willing to pay less still pay something, just less. Price discrimination captures a portion of the surplus value that is left on the table when a price is set lower than some fraction of the market is willing to pay, and in the case of tipping that substantial surplus value goes directly into the employees pockets.