The owner will either raise prices or add on the surcharge. I think waiters and waitresses have always been under-paid. There are some servers that do not earn a tip, but most are hard-working people and I tip even the bad ones, although not as much as the better ones. Most servers are dependent upon tips to survive. My wife and I frequent one restaurant in particular here in PA. Over the years, we have come to know the servers by name and I always recommend this restaurant to my friends and acquaintances when necessary.
Heck, we even tip the Subway sandwich maker if there is a tip jar out, which many do not allow.