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It's not some kind of sneaky thing where if workers are paid with tips the customers pay more. When workers are paid in normal wages instead of tips, the prices are just higher.
The problem is that many tipped workers love tips because most of the time they can avoid reporting all of them, so they pay less in taxes. Employers like them because it can make their prices seem lower because the price on something like the menu isn't actually the final price someone pays. The people who hate tips are the customers who can never be sure what the final bill will be, and who often have to "tip" a minimum of 10%, often in advance, for service that isn't tip-worthy.
It's ridiculous to pretend that businesses don't have business models that support paying a living wage, or that without tips they'd go out of business. The only difference is that they can list lower prices knowing that the final bill will include a tip. If tips were eliminated they'd just have to list the items with a slightly higher price. The customers also know that that tip is going to be included. Other than European tourists, nobody goes into a restaurant and thinks that the final bill will merely be the cost of the food they ordered. They know they'll be expected to pay a tip too. Getting rid of tipping would just mean that the tip would be $0, and the food would be a bit more expensive.