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Gordon Ramsay one of the first celebrity chefs to bring US-style 20% service charge to London
(www.independent.co.uk)
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And that’s basically it!
If it's mentioned up front and fixed then it's fine. One way or another the restaurant needs to cover it's costs and it's either done via inflating the price of the food or a fixed service fee.
What I hate is a discretionary tip suggestion because suddenly I'm made to be responsible for how much the staff get.
That's exactly equivalent except for the false advertising.
Why do you think this increase has anything to do with covering costs?