Forbes has this:
There are really only three possible reactions to a rise in labour costs. One is to cut the profit margin. Wendy's seems to make about 8% on sales as net margin. Not a lot of room there to cut that. The stockholders are going to want something back for providing their capital to the company after all. Another possible move is to increase prices, or perhaps not be quite as cheap as everyone else. This doesn't seem to work very well as Target has just found out:
Target to cut prices, update stores amid 'seismic shift' in retail industryCutting prices now being an obvious sign that trying to raise them isn't going to work. Consumers just aren't in the mood to pay more. At which point there's only one possible tactic left to deal with wage rises. Use less labour.
Flippin' burgers isn't much of a job but it is a job.