Restaurant industry on watch with labor getting unruly

|By:, SA News Editor

Fast food workers aren't likely to see a broad increase in their wages to $15 per hour, but the heightened calls for unionization and focus on benefits could be drag on the sector in the future.

Economists say a raise in the minimum wage to $10.50 per hour would increase restaurant expenses by 2.7% which could be passed on with higher menu prices. The trick is in a promotional environment, and with more menus tied to value, the pass-through to consumers might not be smooth as academics forecast.

On watch: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SONC, WEN, BKW, DENN,KKD, IRG, DIN.