The whole tipping system is insane: I'll allow you to provide services in my restaurant and if the customers like you, perhaps you'll earn some money.
I'm still waiting for the restaurant holders to come up with the idea of charging for this unique opportunity.
"Don't think of it as paying to be allowed to work, think of it as investing in your revenue-generating activities! !"
Actually, it wouldn't matter if lowest price was the sole factor for picking a particular restaurant. Because all restaurants would be lowering their prices by the same general percentage.
However, it does impact the choice of whether or not to go out to eat.
Unless you're talking about the case where some restaurants discourage tipping (and charge more) but others don't. In which case, there's many cases of that happening and the restaurants closing or switching back. Because price, which not the sole factor, can be a very important one. It certainly impacts my choice when I go out to eat.