Good personal hygiene is essential to the safe manufacturing and serving of food and food related products. Allowing businesses to duck out of employee hygiene will remove the simplest and most effective means to everyone being able to eat safe food.
The idea that a restaurant could simply hang a sign that they may or may not wash their hands there is not anywhere close to letting the public decide where they eat.
The possibility of "market forces" determining which businesses survive or don't isn't likely to succeed either.
Retain Good Manufacturing Practices - Keep hand-washing a required practice and safeguard our food.