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Can a small restaurant not pay for the Chinese New Year holiday?
You can't.

According to the provisions of China's labor law, the employer still needs to pay wages during the vacation. Even if the small restaurant has a holiday for the New Year, the employer still has the responsibility to pay the wages due to the workers according to the labor contract. Workers' wage rights and interests should be guaranteed and cannot be deprived because of holidays. If the employer fails to pay the wages on time, the workers can safeguard their rights and interests according to law, including complaining to the labor inspection department or resolving disputes through labor arbitration and labor dispute mediation.