It is now getting more common in the Seattle area to have the restaurant make an out right claim that they pay well with benefits and add a mandatory 20% service fee. It takes all the fun out of tipping. Last time this happened I felt sorry they limited their tip by doing this, but it was stated up front.
However, I recently found it even worse. Daniels Broiler in Bellevue clearly stated this "we pay them well" claim and stated that they have included a 20% service fee which they keep. I even took a picture of the menu to share with folks how they clearly state it is included. So my wife and I went there for dinner and of course their menu is way overpriced, more so than pre-covid. A Wagu 8 ounce fillet was $180, but included a spud. The drinks were $18 to open. So I figured since the 20% was included it was at least no more.
Well as Gomer would say, su..prize su..prize, the bill came and they added the 11% sales tax, and then topped it all off with a 20% on top of everything including 20% on the tax. Needless to say, I was p#$$@* off and called over the manager. Nope they would not acknowledge the word "included" and said that is what we owed, period. We will not be going back, we have had Michelin star meals for far less and this was more like Outback standards.
BTW, we paid over $300 and only ordered one steak dinner and one beet salad with two overpriced drinks. We split the meal and walked out totally upset paying way too much for the food, drinks AND extra 20% for service.
We always tip 20% or more for good service. In this case the service was mediocre, they could care less they are paid very well AND get extra tip no matter what they do.