Great in theory but the reality is it fails every time.
I think the reasoning is simple. If the average tip is 15% then half tip more and half tip less. So, the restaurant raises their rates 15% and those who tip more save money and those who tip less pay more. The problem is that those who tip more than average are doing it voluntarily so you don't gain much by lowering their bill.
On the other side, you have raised the cost for half of your customers. Those customers are likely more price sensitive and therefore might stay away.
At the end of the day you gave a price break to those who were happy paying more and drove away those who are used to paying less.
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