I was talking about those who are unwilling to pay the extra $3 for the burger, opting to hit a fast food place where they can get one for $5. You and I may understand the difference in that burgers and why one burger wen up $3 and the other didn't, but others dont. And if the burger goes up 3 then everything else goes up too. So 3 for the burger, 1 for the fries, 1 for the beverage, .5 for the salad, 2 for the desert, now the bill is 7.50 more then before. On a table of 4 that's a $30 change, is it to much for a family who would normally tip 20% and cause then to not go out as often? If so then both the owner and wait staff lose out.
But the price in all things would remain exactly the same except for cases where people weren’t tipping. I suspect most wait staff and even most restaurant owners would say they don’t want those customers anyway. Why would it matter if someone was paying $120 for dinner ($100 cost + $20 tip) vs. $120 for dinner. ($120 cost + $0 tip)?
The average person would pay $0 more.