i'm curious to know if abolishing tipping reduces performance? it seems like there's no reason to put in extra effort if all of them are paid the same and that the worst performer could be paid the same as the best.
If a restaurant has bad service, people will eat elsewhere. That means restaurants will hire waiters who provide good service and fire waiters who provide bad service. It seems to work out well enough in countries where you don't normally tip.
I have long since lost the link, but I think it actually improves customer experience and improves the job atmosphere, leaving people less stressed. This is mostly because servers now share duties.
You say there is no reason to put in extra effort: I disagree. This doesn't seem to be a problem at other jobs. Some people simply try more or put in the extra effort. They also generally enjoy better chances for promotion, good references, and so on.
It might reduce competition within the restaurant, but competition between restaurants remains. certain restaurants can prioritise service by paying their servers more if that's their focus.
Theres also a perverse incentive in that, like a good UI, good service shouldn't actually be noticed, so how does a server make themselves noticed (to receive a tip) while not being noticed?