It's a huge increase.  For an employer with 5, 35 hour per week employees, it means close to $33,000 more in wages for the year.  Many businesses cannot afford to take that kind of hit so if reducing hours or laying off isn't an option, prices need to be raised.  Kind of defeats the purpose and what about the domino effect for those above minimum wage?  They will want/need more to pay for the increased cost of living.