Lots of armchair business owners are chiming in, so let me re-state facts:
The restaurant is open 7 days a week and for ~75 hours. Let's say the restaurant needs only 2 FTE employees, so that's about 150 hours per week. An extra $2/hour (let's set aside the extra cost for CPP/EI/Benefits, etc.) will cost the business roughly $300 a week more. Or over $15K a year.
This is the absolute best case scenario where by there are only 2 FTE employees and the cost increase is only $2/hour. Obviously the cost is way more as there are more than 2 employees.
Capital gets allocated to where it will yield the most money. Capital is blind, it has no feelings, and it doesn't care about who is in power.
A $15K hit in profit means that capital gets re-allocated.
And no, you're wrong: just because these employees get more per hour, doesn't mean that they spend it on restaurants. Yes, in theory it works but in real life, their hours get cut and they end up in a worse position. Again, read the link that I posted above.