Staff wages are a significant expense to any restaurant operator. Any legislation to increase the cost of those wages, including federal, state, or municipal minimum wages threatens to significantly increase that expense. Operators fear they will need to drastically increase prices to offset those increases. This study looks at previous studies to determine if prices increase when minimum wages increase and how severe are those increases.
This study concludes that prices do increase, but those increases are moderate.
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Jacke, Steven, "Minimum Wages and Pricing for Restaurants in the United States" (2021). Hospitality Graduate Student Scholarship. 19.