When have I ever said restaurants don’t make a profit? Small margins are still a profit. When you sell a lot of product, small margins can make you a lot of money. Unfortunately, there’s no room for adjustment with small margins. So, increased labor costs would require increased revenue. Prices are currently falsely deflated by tipping. I’m all for getting rid of tipping and setting prices fairly, but people would complain about that too. One thing I know for sure, tipping your server doesn’t solve anything except taking money they earned right out of their pocket.