---
title: "CNBC: Businesses Get Creative as Minimum Wages Increase"
url: https://burnaze.com/article/2e04ace2-89ce-48bd-b456-63ccf954955e
source: "1851 Franchise"
original_url: https://1851franchise.com/cnbc-businesses-get-creative-as-minimum-wages-increase-5104
category: "Finance"
topics: ["Finance & M&A"]
published: 2016-06-30T14:09:00.000Z
modified: 2026-11-01T04:13:00.280Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/4a31262db89825b4403a0fde3201d1789168160630083911.jpg
---

# CNBC: Businesses Get Creative as Minimum Wages Increase

**TL;DR:** Minimum wages are increasing in several major US cities, including Los Angeles, Chicago, San Francisco, and Louisville, prompting businesses to adopt creative strategies to cope with the changes. Some employers, such as McDonald's and Panera Bread, are using technology like kiosks to reduce personnel and soften wage inflation pressure.

*originally published in 1851 Franchise on 2016-06-30. [Read the original](https://1851franchise.com/cnbc-businesses-get-creative-as-minimum-wages-increase-5104).*

## Story

It's about to get more costly for businesses to operate in the nation's second- and third-largest American cities.

The cities of Los Angeles and Chicago both have local minimum wage ordinances going into effect July 1 that will increase the mandated hourly wage 5 percent to $10.50 per hour from $10 previously. On the same day, both San Francisco and Louisville, Kentucky, will also see new higher minimum wages in their cities. San Francisco's hike will boost the hourly rate 6 percent to $13 per hour from $12.25 previously, while Louisville's minimum wage will rise 6 percent to $8.25 per hour from $7.75.

Overall, researcher Evercore notes that four counties and seven municipalities nationally will get a jump in minimum wages between July and October. Among them are two counties in Maryland — Montgomery and Prince George's — where minimum wages are set to soar nearly 13 percent to $10.75 from $9.55 on Oct. 1.

Some employers — particularly those in the retail industry — are increasingly adopting technology to soften wage inflation pressure. McDonald's, Panera Bread, Wal-Mart and other major retailers are leading the way and using kiosks and other technology as they generally reduce the number of personnel dedicated to cashier functions.

"Restaurants are finding creative ways to cope through technology and price increases while increasing general consumer service levels," said R.J. Hottovy, an analyst at Morningstar in Chicago.

## Entities

- 1851 Franchise (publication)
- General (sector)
- McDonald's (company)
- Chicago (location)
- Walmart (company)
- Los Angeles (location)
- Panera Bread (company)
- Louisville (location)
- technology adoption (topic)
- San Francisco, California (location)
- retail industry (topic)
- MorningStar (company)

---
Originally reported by 1851 Franchise (https://1851franchise.com/cnbc-businesses-get-creative-as-minimum-wages-increase-5104). Summarized by Burnaze (https://burnaze.com/article/2e04ace2-89ce-48bd-b456-63ccf954955e).