Study: Raising wages to $15 an hour for limited-service restaurant employees would raise prices 4.3 percent

July 28, 2015

West Lafayette, IN  (RestaurantNews.com)  Raising wages to $15 an hour for limited-service restaurant employees would lead to an estimated 4.3 percent increase in prices at those restaurants, according to a recent study.

Researchers from Purdue University’s School of Hospitality and Tourism Management also examined the impact of limited-service restaurants offering health-care benefits and found that, due to current tax credits in the Affordable Care Act, there would be a minimal effect on prices at limited-service restaurants with fewer than 25 full-time employees.

Limited-service restaurants are what many consumers refer to as “fast-food restaurants,” where there usually is no tableside…