I've gone to multiple restaurants of late that have had to close early (even very early, like 3pm) because they are so short staffed. Other restaurants have people waiting but have empty tables because there is no one to work them.
It's difficult for one restaurant paying living wage to compete with those relying on people working poverty wages. The businesses paying good wages will not be able to compete on costs and that benefit might not be passed to the customer. Certain businesses, for whatever reason, are more effective at hiring and retaining workers at low wages. Instead of forcing businesses to do the right thing and try and compete with lower prices due to horrible wages, we need to mandate living wage so all the competition has to move together.
That would just benefit big businesses that can absorb the cost. Small businesses wouldn't be able to compete as their margins get crushed. I don't think people realize how cut throat the restaurant business is. It is possibly the most probable business model to go under with. I am not sure I want to live in a world where it's all mega corporations that I can eat at without spending a lot of money. Also as many have pointed out, this doesn't really address the problem since this is on a global scale including in places with much higher wages and no tipping.
