Probably the best places to look in order to find out what will happen when you raise the minimum wage are those cities and states that have already raised the minimum wage. Take San Francisco, California for example. San Francisco currently has the highest minimum wage in the country: $10.55/hour. San Francisco took a bold move in 2003 when the city voted to tie their minimum wage to the regional rate of inflation. As a result, the minimum wage in San Francisco has consistently gone up each year from $8.50/hour in 2003 to where it is today. And as the San Francisco Examiner reported:
a 2004 peer-reviewed UC Berkeley study found that the rising minimum wage had no impact on jobs or the propensity of employers to leave the area. Instead, it concluded that restaurants in particular passed on increased costs to customers, with prices rising 6.2 percent for fast food and 1.8 percent at sit-down eateries.