What A Minimum Wage Hike Could Cost You

In his State of the Union Address, President Obama called for the federal minimum wage to raise from $7.25 to $9.00 per hour.  The wage for tipped workers, which has been $2.13 per hour since 1991 is also expected to rise.  So far, major restaurant groups have been silent on the issue since the president's announcement.  Analysts however, have not been so silent.
Projections show that the hike in wages could result in higher prices for meals at your favorite restaurants.  In fact, they project that inflation in relation to labor costs could rise as much as 18%.
What does this mean for the restaurant industry?  A projected 50 cent increase in wages for tipped labor would result in a 4% cost increase in prices for meals at sit down type establishments.  In an economic period where discretionary spending is still low this could cause a significant problem for the restaurant industry.
Currently, the proposal is not in the legislation phase.  Until that happens, major restaurant industry leaders will refrain from lobbying for any change regarding the issue.

What do you think?  How will the restaurant industry be affected by the proposed change in minimum wage in the United States?