A better question would be will the economic impact of raising servers wages in terms of beneficial personal spending, reduced government transfer payments, increased tax revenue, etc. be better than the increased restaurant menu prices, the corresponding decreased demand for restaurants, the decreased/eliminated restaurant profitability, the decreased tax revenue, the costs to landlords of vacant locations, etc.

Sure, it would be great to raise wages. Minimum wages interfere with market forces. If you artificially set wages, you will keep capital out of markets because they won't get a sufficient return. Similarly, if wages were allowed to fall, all things being equal as no other market regulation, prices would have to fall because demand would fall as consumers wouldn't have enough to buy. It isn't always pretty on a day to day level but eventually the market corrects. Pervasive regulation prevents these mild and gradual market corrections. Every now and again, the market forces overwhelm government's efforts to regulate - see housing bubble, etc.