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Sonic's CEO Says If Minimum Wages Rise, Menu Prices Might, Too

The fast-food corporation's leader said he'll increase prices to offset any rise in the minimum wage so his restaurants can still make a profit.
Sonic's CEO Says If Minimum Wages Rise, Menu Prices Might, Too

As protesters across the country call for higher minimum wages, Sonic's CEO says customers should be ready to pay more if workers get their way.

The fast-food corporation's leader Clifford Hudson said in a company conference call this week if minimum wages are raised, price hikes will be necessary to keep the restaurants profitable.

There's been a fear raising the minimum wage will lead to fewer jobs. However, if wages do get a bump, Hudson said he doesn't expect a drop in workers at his restaurants.

His comments feed into a another, broader argument, though: that prices across industries will rise and actually take away from the purchasing power of workers who earn a higher minimum wage.

Sonic's 3,000-plus restaurants employ many low-wage workers, so if Hudson's views are anything to go by, they could be pretty telling for what could happen in the fast-food industry if minimum wages rise.

This video includes clips from Sonic and CNBC, and images from Getty Images.