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Alternative fix: make the minimum wage an actual minimum wage regardless of tips. Let the market sort itself out from there.
I don't disagree. But for the sake of playing devils advocate a bit - restaurants already take YEARS to achieve profitability because costs are so high. If you suddenly triple all of your wait staff's salaries, small, local restaurants making good faith efforts to operate ethically would probably be the ones to suffer.
And yet - I've heard that if McDonald's were to pay employees $15/hr, because of economies of scale, it would raise the cost of a burger by mere pennies.
So if your local mom and pop's can't afford to operate now, and all you're left with is Chili's and Olive Garden and McDonald's who priced them out of business with capital investment and economies of scale, mom and pop go away and all we're left with is the corporate garbage. And when the competition is dead, prices will steady climb. Meanwhile, those m&p restaurants all have waiters now making $0/ hour.
I'm not an economist. Obviously. And maybe it wouldn't be so dire. It just feels like "let the market sort itself out" would work great for the CEOs and not anybody else. I haven't seen the market self correct for my benefit in years. But in our failing capitalist society, I think there are about a thousand ways the worker and the consumer end up fucked either way.
So how do restaurants outside the US that do not rely on the patrons paying their staff survive?
They didn't fuck their system in the first place. I'm not sure how we unfuck ours with so much wrong at every step.
Very few small mom and pop shops might need to raise prices, many of them already pay decent wages far above the minimum actually, but corporate restaurants and chains like McDonalds can absolutely afford $15 an hour without raising prices because they already pay above that amount in other places. There is already the assumption that if McDonalds could raise their prices then they would. What they pay their staff isn't a factor in the equation unless they were close to net zero or below, but unlikely because McDonalds makes Billions in Net Revenue annually in the USA alone. If the corporation decided it would be more profitable to close lower traffic operations in small towns then that would be a good thing for local restaurants.
If this sort of idea really hurt the small times more than the corpos wouldn't be fighting tooth and nail to stop it from happening using lobbying groups.