However much you pay young students, they're always going to leave to go back to university and then ultimately leave the area to get decent jobs when they graduate.
Customers are already whingeing and moaning about high prices in tourist areas! High prices are needed to pay staff more obviously. You can't have it both ways. You can't have cheap food/drink served to you AND want experienced/highly paid staff serving you!
Restaurants, cafes and shops are already screwed in tourist areas with high rents, and now insanely high (unlimited) power costs, that adding a few pounds per hour to their staff wages would push them over the edge.
The problem is holiday homes, AirBnBs etc which have massively pushed up prices and priced out the young locals.
Run down public transport options doesn't help either. Bars & restaurants etc have opening hours outside the normal working day, but local authorities continue to cut subsidies etc so bus firms don't run full services in the evenings and weekends, some places have no service at all in the evening or Sundays - that's a fat lot of use for hospitality staff who finish at 11pm isn't it??
Also, lack of decent jobs, caused by centralisation of organisations into London sucking in graduates etc from all over the country, means even the better educated/higher paid graduates can't return to their home towns because there are no decent jobs locally. If you've got a degree in engineering or actuarial science, you're hardly going to go back to living in the Lake District to work in a bar, are you??