Todd Schwartz, owner of a Dickey's Barbecue Pit franchise in Northridge, raised prices roughly 25 cents on average after California's minimum wage rose a dollar to $9 last year.
The wage hike in Los Angeles, combined with tight margins, will probably force him to sell his sandwiches, baked potatoes and brisket for more, possibly as much as an extra dollar or two in five years, he said.
"Autopilot" inflation adjustments will exacerbate price increases across the board at his restaurant, Schwartz said. The higher prices would in turn push up inflation measures, resulting in a "never-ending spiral" of wage increases, he said.
"Wages don't come from me; they come from the customer," he said. "What is the most you are willing to pay for a barbecue sandwich?"