I'd rather just say "hey, let's do a family and friends get together and screw going out anywhere... come to my house, all the restrooms you can use here and no taxes or other non-sense!" There's probably $500-1k+ of revenue that local businesses didn't get that evening, but hey, it's better for my friends and family, we can save and invest that and be more comfortable.
For governments it doesn't matter, they can just shift taxes to where it needs to be. For businesses, it can seriously hurt your bottom line. I can't imagine operating a restroom is so costly to offset the lost customers that it's worth cutting off so many potential patrons, but maybe I'm wrong or maybe people will continue throwing their money in areas that aren't consumer friendly. It won't be me though. Also I'm not that old, the more elderly who tend to have more disposable income from wealth accumulation are also people who often have less ability to wait to use restrooms. They seem like another market to consider.
The cost of dealing with the kinds of messes that happen in public toilets is exorbitant.