It’s been a long time conservative argument that if the government forces employers to raise wages, they will simply transfer the additional labor costs onto the consumer through price increases. For an opportunity to put economic theory into practice, look no further than Chipotle. San Francisco’s Chipotle Mexican Grill raised its wages by 14 percent, and what happened next? Their product prices increased anywhere from 10 to 14 percent.
Raising the minimum wage doesn’t happen in a vacuum, according to new research on Chipotle.
When Chipotle Mexican Grill Inc. raised its minimum wage in San Francisco, it raised its prices proportionately, according to William Blair, a global investment banking and management firm, which issued a report on Tuesday to its investors.