On Jan. 1, San Francisco will mandate a minimum wage of $10.24 per hour. The “living wage” hike is a winner for those who say they want to help the poor. But when you look further into the impact of the “living wage” concept, the reality isn’t so rosy. A San Francisco restaurant owner explains who gets hurt— something many supporters of minimum wage laws don’t want to acknowledge. Here’s a sample of the story, but the entire piece is worth your time.

Daniel Scherotter, chef and owner of Palio D’Asti, an upscale Italian restaurant in theFinancial District, said the city’s minimum wage hike from $9.92 to $10.24 means that his highest-paid employees — the waiters who make most of their income from tips — will see more money in their pockets while his salaried kitchen staff will have to take the hit.

If Scherotter raised menu prices to make up the difference, he’d risk going out of business in this economy.