Many on here have expressed concern that the higher minimum wage will be inflationary. It will, but probably to a lesser degree than many fear. On average restaurants spend 30 percent of sales on payroll. Profit margins are 5 percent. Figure payroll costs will increase about 50 percent when this is fully phased in. (Some employees probably already make more than the new minimum) So, you can expect to see about a 15 percent increase in prices over five years if the owners pass all the costs on to their customers or about three percent per year.
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