Oh, I know they would not only raise prices but also cut labor. It happens all the time. Where I work, at a fast casual restaurant, every time the minimum wage goes up, they put a freeze on hiring and on raises. And a few weeks later the prices go up. The problem with all of the "idealists" that hate tipping, well, most of you are cheap skates and complain to high heaven when the prices go up. So you don't want to tip, but neither do you want prices to go up. I know a good way of keeping prices down, try not to grab 30 napkins when you only use 2. The restaurants can not reuse them and they all get tossed.