Americans spend a phenomenal amount of money consuming food outside their homes, and a major reason is that with restaurant labor so cheap, the convenience and price are attractive to people who don’t feel like cooking. If the wages go up, that calculus shifts. And unfortunately those “rich bosses” can’t just take it out of their profits, because margins in the industry are under 5 percent, and the difference between making that profit and closing up shop can be surprisingly thin. Empty seats don’t just cost you rent; they make it hard to get good servers, because empty seats mean lost tip income. You can end up in a vicious spiral where your service gets worse, so your restaurant loses more customers, so the service gets even worse . . . and it’s time to call the bank and tell them you won’t be paying off that loan.
The economic ignorami don’t seem to understand that restaurants have competition in addition to other restaurants — cooking your own meals at home. In fact, the high cost of dining out is one of the reasons (though not the only one, also I can feed myself more healthily, and I really don’t enjoy sitting around being served by people) that I rarely eat out unless I’m traveling. With 25% unemployment of black youth, raising the minimum wage (or in fact having one at all) is a moral atrocity.