That's insane as well. Why aren't they?

>>If they say up front on every menu that the tip is included and the servers/bartenders are up front and you can actually remove it (I guess you can put less on the bottom line), what’s the issue?

Nothing. Some restaurants in London started doing this now, the menu says a service charge of 10% will apply unless you ask to remove it and very few people have any issue with it.