Subway's Deluca: Minimum Wage Increase Bad News
Fred Deluca, founder of the Subway chain, said a sharp increase in the minimum wage is “a bad idea.” “Wages directly affect prices,” he said. “It will cause franchisees to raise prices. There’s no doubt about it.” Deluca acknowledged that minimum-wage workers “deserve to make more,” but cautioned against a big spike all at once. President Obama proposed raising the minimum wage to $9 from $7.25 per hour in his State of the Union address earlier this month.