Where the Minimum Wage Hike Could Hurt the Most

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Dec. 23 (Bloomberg) -- Alix Steel reports on the impact a minimum wage hike might have on businesses. She speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Many places have said they will increase the wage on average of nine percent next her.

Depends on where you decide to do business.

California planning to wage -- rage -- raise it by 10%. the companies that have more ranch ics have up buffer.

The companies that keep stores in house may run into problems.

Nicole miller reagan says these names have more than 20% of their stores in those states planning wage hikes.

Starbucks is very exposed.

Almost 35%. bj's with almost half of its business in california put some more at risk.

What about company earnings?

You have to take of your favorite reader maker.

To pull a could be hit by as much as 40%. bj's a 33% impact.

-- chipotle could be hit by as much as 40%. dunkin' donuts almost no impact at all.

Labor is a big hit for the casual dining.

How do the companies mitigate the risk?

You can raise the menu prices.

Through sales.

What will they do?

Restaurants could aim to make service more efficient.

For example, starbucks testing a system where you can use your phone to order, pay for your drinks him avoid the line completely and pick up a copy.

Bj's will have to raise prices by 1.5%. overall, the short-term problem according to most analysts i spoke to is if it went as high as 10-10, the companies would not be able to pass along all of the increase at once.

There would be an increase on companies.

The most difficult would be the quick service restaurant liked mc donald's. center margins.

Very interesting.

-- thinner margins.

Joseph a bank says they will reject the proposal to acquire the company by the smaller men's wearhouse.

They will continue to review purchase opportunities according to the company.

Julie hyman has the details on this.

Pre-k's this has been back and forth that has been going on for quite some time.

We have had these parties make offers for each other and then

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change