Many restaurants have tried this, and end up switching back because comparing prices to other restaurants puts them at a disadvantage. I think the only way for it to happen is regulation that forces it. Might as well include taxes in that price too.
Staff often doesn’t like it either. Probably some combination of actually making less money and being overly optimistic about what they would be making if they were getting tips. a bar I was aware of that advertised paying $20+ and hour with no tips switched to a tipped model due to staff complaints.
there would be a rough transition period, but i do believe that in countries where tipping is not the norm, places just pay more to get better stuff the way non-tipped labor already works.
one of the breweries i live by recently moved from non-tipped to tip, and it's generally a disliked change from what I hear because most of the time the brewery is open it's not busy enough to make up for the loss in wages, and then people fight over the really busy shifts.
it sounds like what happened is management simply did not replace the tipped wage with an appropriate flat wage. if management provided a satisfactory wage, nobody would complain.