Technically, all American restaurants are "an establishment with cheaper prices" for purposes of this discussion.
There are really 3 relevant parties here: the restaurant owner, the restaurant staff, and the customer.
The owners have lobbied for and gotten exceptions to most minimum wage laws, to the effect that they can pay their staff under minimum wage, with tipping making up the difference.
Consequently, if staff receives no tips: the restaurant is required to pay them minimum wage (US$7.25 / hr), or applicable local minimum wage if higher [0].
If staff receives tips, the owner is allowed to pay them a much lower wage (don't remember offhand), with tips making up the difference to meet or exceed minimum wage.
Some of this may be changing due to worker shortages, but restaurant margins are always pretty thin.
Tl;dr - restaurant workers make over minimum wage only if tipped
I understand how it works; I'm trying to find a "vote with your feet" solution as an alternative to screwing over poorly paid employees by not tipping. The most obvious way to do that is to favour restaurants where tipping is discouraged.
> if staff receives no tips: the restaurant is required to pay them minimum wage
> Tl;dr - restaurant workers make over minimum wage only if tipped
Your tl;dr doesn't match. According to you workers make minimum wage irrespective of whether you tip (unless the owner breaks the law), and all your tips do is directly offset owner costs.
There are really 3 relevant parties here: the restaurant owner, the restaurant staff, and the customer.
The owners have lobbied for and gotten exceptions to most minimum wage laws, to the effect that they can pay their staff under minimum wage, with tipping making up the difference.
Consequently, if staff receives no tips: the restaurant is required to pay them minimum wage (US$7.25 / hr), or applicable local minimum wage if higher [0].
If staff receives tips, the owner is allowed to pay them a much lower wage (don't remember offhand), with tips making up the difference to meet or exceed minimum wage.
Some of this may be changing due to worker shortages, but restaurant margins are always pretty thin.
Tl;dr - restaurant workers make over minimum wage only if tipped
[0] https://en.m.wikipedia.org/wiki/File:Minimum_wage_by_state_b...