It does more than that. It costs retail and hospitality businesses a LOT of money when minimum wage goes up. You only have a percentage of sales available for payroll and when the wages go up, you have to reduce employee hours to keep that sales to wages balance. If that balance gets out of whack, you either aren't waiting on the customers, or you're losing money. Neither is conducive to staying in business. Raising prices isn't always an option and unlike what the liberals seem to think, it can actually result in a downward spiral.