There may be instances of lack of oversight at certain places, but specifically regarding the simple hypothesis of increasing pay for retail/hospitality/restaurant workers will result in more profit due to retaining better workers is shown not to work by the entire world not doing it.

The other aspects to consider are, are the customers willing to pay the extra marginal cost for the marginal increase in utility, and will objectively, will the cream of the crop stick around for these jobs?

It’s pretty well opined that customer service/retail/restaurant type jobs have the worst quality of life for those working in them. The amount of money needed to offset the quality of life issues at work is simply not possible for most restaurants.