Even if these restaurants succeed, one risk is that 'no tipping' is just something that upscale restaurants in rich areas adopt because only they can afford to. Waiters in those restaurants are already compensated much better than your average waiter on a roadway diner -- this would literally only be helping the already better off.
Waiters and waitreses? That's one hell of a way to slice the pie. Where does this kind if thinking end? Do we start to divide up the upper and lower classes of homeless people because of the area they choose to be homeless in?