They've tried that in several places in the US and it just doesn't work. Customers don't come as often due to sticker shock, and the best servers leave because they're no longer getting rewarded for their extra effort. Then you're left with bad employees, who need to be let go, which means hiring more people, which means training more people, and in the meantime your customers perceive that the prices are higher and the service is worse, so they come even less often.
If there was a nationwide law that banned tipping, that could work. But doing it one restaurant at a time will always fail.