See this post in SFGate today on the latest from Bar Agricole and Trou Normand, who implemented the 'tipless' (aka service-inclusive) model in late 2014. TL;DR - it didn't work out well for them and they're reverting to the traditional tipping system. The primary reason they cite: they couldn't retain FOH staff who could go to a traditional-tipped house and make more money.