They’re entitled to run their business as they please. And waiters can either accept this or go. This will lead to poor or inconsistent service. If you’re guaranteed a certain amount, why work any harder than you have to? Now they’re like fed employees. Some will work harder than others and get po’d. They’ll leave as a result. But...it’s up to the owner.
I agree with your posts. The waiters can always leave if they want and seek employment in another restaurant. Personally, I wouldn’t work on salary as a waitress - I’d prefer the tips. In NYC, the money you make is wild. But this restaurant is certainly going to be popular with British tourists!
“This will lead to poor or inconsistent service. If you’re guaranteed a certain amount, why work any harder than you have to?”
I doubt that. Is it your contention that any worker who has a fixed wage doesn’t work hard? There are still incentives to work hard, just like any other job - better servers may get raises, promotions, etc.