I feel for her employees, they are in a tough spot, as is she. Being a small business owner is tough, it seems like they are always on the edge of extinction from just one event like this. My wife runs a small business with 5 employees. It is true that you have to factor in local wages, cost of living, what you charge your customers, there are so many factors that determine wages.
I know my wife would be out of business if she were required to pay every employee $15 an hour or more. Typically her employees are single, or using the job as a supplemental income to another higher income spouse etc. Not every job is a job you can live off of and feed a family of four on along with all the costs associated, that's simply impossible. If you think otherwise you can prove your theory by going to a bank asking for a $400,000 loan to start a business because you can answer phones or stand on your feet all day. Then go in as a dentist or lawyer and ask for money to start a practice, which person do you think is going to get the loan?
The true culprit imho is larger businesses and corporations that pay their employees disproportionately low wages to what they make in revenue. Along with the tax advantages they receive it's crazy. Small businesses get screwed by state, local, and federal taxes. There is no way my wife can eliminate those taxes by gaming the system, therefor she actually pays in more taxes per year than Amazon. That's fricken' crazy if you think about it.