re: #194 geoffm33

All things being equal between competitors (Joe’s Coffee Shop vs Bill’s Coffee shop across town) the wage increase should impact them equally.

All things not being equal (Joe’s Coffee Shop vs Starbucks across town) rule would not seem to apply.

The likelihood they have the exact same staffing levels is low. Raising the minimum wage has a theoretical complex effect, since it may raise the value of a skilled worker even more.

And costs aren’t automatically passed to the customer, either. If the product is purely discretionary, then a simple price raise at any point can depress the demand for it. People can actually decide that there’s a limit on what they’ll pay for X, even if they’re habituated to it. The companies may just accept a lower profit margin, or they may even find that with the higher wage, their employees have lower turnover, fewer sick days, and cross-train better— all benefits to raising the minimum wage that have been shown in various places.