Minimum wage workers' buying habits will make little difference. >1% increase in costs in a very competitive environment is significant.  There will be a downward pressure on costs that will show up somewhere. It might be less quality. It might be fewer hours for minimum wage workers. It might be that if they have to pay a higher wage they might as well hire people with more experience or skill. The bottom line is that the workers that are at the bottom when it comes to marketability, skill level, and experience, will find it harder to find jobs, and to top it all off, the consumer will pay more.