I'd suggest contacting the manager and ask if they're aware of what Craig is doing. They may not be. Not all of your employees have your best interests at heart and some things get by you. The poor connotation this leaves in the minds of many people is not the desired effect you want your customers to take home with them. Last impressions are as important as first impressions. Know that besides the obvious, there's actually a very calculated reason for beautiful hostesses greeting you and wonderful desserts and coffee at meals end.
Some places don't mind though and many do post in advance added gratuities for service. I'm involved in a fairly unique project with full service that most people had never experienced and no one was tipping. We ended up having to implement something like what I've just described with little or no resistance on the part of the customer. As if we had to teach them how to use the facility. But it was explained throughly in advance both visually and then at the end, verbally with virtually no issues. In seasonal places such as South Florida with many international tourists, it's common, but in a restaurant in Chicago (I'm assuming) I'd find an individual note from a waitron unit suggesting what to tip, to be greedy and presumptuous.
I'm with you Olde School, although I've been referred to by my employees as a bit of a dinosaur myself. If Craig worked for me, he would looking for work the moment I found out.
"In pursuit of joys untasted"
from Giuseppe Verdi's La Traviata