In the restaurant business it is expected that you will tip an average of 15%.The server is payed a very little (generally below minimum wage) salary. Quite factually, if the restaurant has a no-tipping policy, the additional money paid to the servers would be passed on to the consumer. This is how it works in the US. You may not like it,but that is the way is.
Withholding tips, for appropriate service,will not change this system. It will not hurt the owners, but will hurt their employees. Where I come from we have a word to describe these people-CHEAP.