A lot of people make this point. I'm not sure I'm ready to pass quick judgement that the restaurant owner should reward loyalty with money. Restaurant owners can be pretty poor and a 50 cent raise would result in the owner having ~$1300 less in his pocket every year. While he appreciates loyalty, he might rather suck up the extra effort of replacing dishwashers than rewarding loyal ones. He could be armpit deep in debt, have a child in college, or otherwise have reasons that money is tight. Or, yeah, he COULD just be a rich asshole (note: restaurants are not cash cows).

The first time I ran a small business, I was shocked at how my thinking turned here. Someone asks for a raise and the money goes straight out of my pocket if I say yes. Which isn't a simple decision if the business isn't a huge profit center.