Tipped employees get paid at least minimum wage in California and we have tons and tons of non giant corporate chains. One of our biggest fast food chains in California is actually family owned and pays their employees (even part time employees) several dollars ABOVE state mandated minimum wage, as well as provides health care.
The key words here are 'one of our biggest' and 'fast food'. Of course one of your biggest chains can afford to pay their employees that wage, but what about one of your smallest? Should they cease to exist simply because they aren't a big company?
Also, as I understand it, fast food has the same standards for paying their employees as everyone else. I have never heard of someone working in fast food who was paid less than minimum wage. I've also never heard of someone in fast food receiving tips.
We're talking about locally owned sit down restaurants. Not corporate chains, big or small. I find it very interesting that Californian restaurants are able to sustain themselves and pay their servers minimum wage, however I also have to wonder how many of those businesses wouldn't have gone under when the recession hit if they had the option of paying their employees less. I also have to wonder how many employees at these restaurants lost their job and haven't been employed since.