First thing that struck me. I'll bet you$100 this owner is an immigrant from China (I would guess the South of China). That's exactly how they do things there - waiters are hourly employees. Service charges go right into the owners pockets.
No one mentioned it so I will.
The owner planned on charging 18% but only giving the servers 15%. 3% goes to the owner.
It was a way to transfer a part of the tips to the owner, pure and simple.