Duh: San Francisco Raises Minimum Wage 14 Percent, Restaurants Just Raised Prices 14 Percent
Robert Gehl
July 7, 2015
Shockingly, after San Francisco raised the minimum wage 14 percent, Chipotle Mexican restaurant raised their prices too – in San Francisco – by 14 percent.
It’s Economics 101, which most liberals can’t seem to grasp: Someone’s gotta pay for it when you raise the minimum wage. And it’s usually the customer.
The American Enterprise Institute is quoting an equity research report that indicates prices are going up at most of the chain’s restaurants, but specifically in San Francisco:
•In our weekly survey of ten of Chipotle’s markets, we found the company implemented price increases in half of the surveyed markets this week—San Francisco, Denver, Minneapolis, Chicago, and Orlando.In most markets, the price increases have been limited to beef and average about 4% on barbacoa and steak, toward the lower end of management’s expectation for a 4% to 6% price increase on beef.
•San Francisco, however, saw across-the-board price increases averaging over 10%, including 10% increases on chicken, carnitas (pork), sofritas (tofu), and vegetarian entrees along with a 14% increase on steak and barbacoa. We believe the outsized San Francisco price hike was likely because of increased minimum wages(which rose by 14% from $10.74 per hour to $12.25 on May 1) as well as scheduled minimum wage increases in future years (to $13 next year, $14 in 2017, and $15 in 2018).
Gee … who would have predicted that a minimum wage hike would cause prices to go up? Not liberals.
http://downtrend.com/robertgehl/duh-san-francisco-raises-minimum-wage-14-percent-restaurants-just-raised-prices-14-percent
