Not sure where you got that. There are two conflated issues. One, if they are not profitable and can't cut costs, then they need to raise prices or go out of business. This is essentially what they did. They offered "sponsorships" which are more like VIP memberships and people paid money for things that used to be free or not exist.

Separately, there is a separate question of the (many) consequences or raising the minimum wage. A lot of smart people think that EITC and other programs are a better way to redistribute wealth. I happen to agree. If a small business has to raise prices, that doesn't generally affect the upper middle class and wealthy. They don't tend to shop at Walmart.