An increase in the minimum wage is imminent. What’s more, it may be tied to an index, like the Consumer Price Index. It’s not hard to imagine this going a little further, perhaps to the point where foodservice wages are comparable to those for all private-industry employees. If this were to happen, what would be the effect on the price of a burger?
One of the difficulties with increasing the wages of hourly employees is the competitive nature of the industry. Limited-service