Starbucks, McDonald’s, Subway, Pizza Hut and a vast majority of businesses make exorbitant profits and CEOs are given record compensation packages and bonuses. Total compensation for the CEO of Tim Hortons in 2013 was $3.4 million, while employees were paid $20,400 per year on average. Figures show that Walmart’s CEO is paid more per day than what the average worker earns in a year.
As well, federally regulated companies tend to be larger and benefit from regulatory protection. They should be fully able to adapt to a gradual increase in the minimum wage.
The city of Seattle has proven to be a good example: after a year, the new minimum wage - $12.50 an hour now, increasing to $15 an hour by January 2018 - hasn’t raised retail products. Before the minimum wage law took effect, many employers were concerned and said that they would have to charge more. So far, that hasn’t happen and they have been able to pay they employees.