How has arestaurant "no tips" policy worked out?

After Experimentations, Where Are We On No-Tipping Restaurant Policies? : NPR:

Ailsa Chang talks with restaurateur Danny Meyers about how a no-tipping policy at Union Square Hospitality Group's restaurants, which include Gramercy Tavern and The Modern, has fared a year in.
"CHANG: Well, what about complaints about higher menu prices? Are there customers who are confused about why those prices seem way higher than they used to be?

MEYER: Well, what we decided to do with our program, which we call hospitality included, is that we would give you one price on the menu. So if your chicken costs $28 on the menu, that's the cost. That's going to cover the linen, the flowers, the cook, the reservationist, the server, the wine director, the rent. There's not an additional line on your bill for gratuity. And so it is a jolt when you first see it. But we've not, to my knowledge, lost any guests. As a matter of fact, what we've gotten over this past year is an overwhelmingly strong thumbs-up chorus from our guests.

CHANG: I was going to ask you, have profits been affected at all?

MEYER: Well we've seen an initial dip in every restaurant. And then as our managers learn to operate under a new economy, they tend to come back up."

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