Where I live, the minimum wage is >$20/hr. An issue is that the necessary price increases to support this minimum wage is causing revenues to drop significantly

Where I live, the minimum wage is >$20/hr. An issue is that the necessary price increases to support this minimum wage is causing revenues to drop significantly. Tips are a percentage of revenue, so people who are paid this way are empirically experiencing a net loss of income each time they increase the minimum wage. This is exacerbated by the closure of businesses due to an unsustainable drop in revenues, which means employment opportunities are becoming more limited. Tipping provides a degree of useful economic elasticity to many service businesses and workers that simply mandating high wages does provide. The structure of compensation matters more in outcomes than people tend to think.