The 'hospitality' fee will just get taken out of what little tip they were going to give their server especially if it's a line item. Servers also have to 'tip out' the bartender and any food runners A SET % of tab no matter what their actual tip.

The tip is what most servers live on and what a lot of folks find expendable when the tab is higher than they planned. Hourly wage is less than half current minimums.