>>That is, if I am opening a new Wendy's in this area you're postulating, and the deal is that I can have generous profits despite a substantial increase in my

>>That is, if I am opening a new Wendy's in this area you're postulating, and the deal is that I can have generous profits despite a substantial increase in my employee's wages, why don't I offer $1 more than the other fast food joints in the area and steal all of their best employees? This is what happens in every other industry. For example, at my company, we constantly lose customer service reps to a nearby company that pays $1 more. We could increase our wage and reduce turnover, but have decided it's cheaper to just replace. Not that I necessarily agree, but it's not my call.