Of course they can raise prices higher.

Sadly, there have been studies (too lazy to find a link) that indicate being sneaky like this, instead of raising prices, leads to a better reaction from customers.

Why though? Why does that asshole get to decide how much the cook makes, and his much the server makes? Why do I get no say in it? After all, they're making and serving food for me, not the owner. I should be allowed to negotiate with the cook and the server and write up a contract we all agree to. The owner gets a cut, too, for providing the space, and paying for the ingredients, but the cook and server pay him out of the money they make. Don't forget the dishwasher. He rents the dishes to the cook.

I realized this sounds very silly and weird, but that's exactly how contracting works. You directly pay who you interact with for the work they are offering, and if their work requires good or services from other people, they pay them.

Why not run a restaurant like a hair salon where a cook rents a time slot and a part of the kitchen. And the server is like hiring a private courier.

Again, its silly. I'm just saying.... The whole customer -> owner -> employee relationship you seem to hold sacred is totally arbitrary. It's a system some men with capital invented thousands of years ago. Why is it necessarily good?