[abdullahkhalids]

Which is likely incorrect. Suppose currently a meal costs 20, and the average tip is 15%, so that the customer pays 23. This means that the restaurant knows that customer is willing to pay 23 for a meal.

Now, get rid of tipping. The restaurant will raise prices to 23 per meal. And instead of that 3 ending up in the waiter's pockets it will instead be split between the owner and the waiter. Most likely, the worker's wages will be likely suppressed down to minimum wage and the owner will get whatever remains of the 3.

You will need to do more interventions beyond removing tipping to ensure waiters get more than minimum wage.

[n4r9]

In most states, the minimum wage for tipped workers is significantly less than the minimum wage otherwise: https://www.dol.gov/agencies/whd/state/minimum-wage/tipped

If we assume that the restaurant owner pays the minimum possible wage out of the revenue, then the claim is correct.