>For example if I am the only restaurant in a certain area and I charge $35 for lobster [...] //
It's strange but in UK we also have restaurants that add a fixed service charge to bills. There's a note in the menu saying "a service charge of 15% will be added" or something like that.
Those sorts of restaurants are often already the most expensive; and of course it's a ruse to keep the apparent price low. The "service charge" is just creative accounting though, the servers just get paid as normal, it's really just a part of your food-bill.
Why do you find it unlikely that a law would be passed to force restaurants to be included in minimum wage laws and so actually have to pay reasonable wages?
Also when you charge $35 people consider your lobster better, even if it's just a comparatively inflated price.
It's strange but in UK we also have restaurants that add a fixed service charge to bills. There's a note in the menu saying "a service charge of 15% will be added" or something like that.
Those sorts of restaurants are often already the most expensive; and of course it's a ruse to keep the apparent price low. The "service charge" is just creative accounting though, the servers just get paid as normal, it's really just a part of your food-bill.
Why do you find it unlikely that a law would be passed to force restaurants to be included in minimum wage laws and so actually have to pay reasonable wages?
Also when you charge $35 people consider your lobster better, even if it's just a comparatively inflated price.