Wetzel's Pretzels CEO Bill Phelps said Thursday minimum wage increases in California have actually helped his business.
"California raised the minimum wage in 2014 from $8 to $9 [per hour]. Our same-store sales were up 8 percent in the next six months," Phelps told CNBC's "Squawk Box."
He said same-store sales rose by more than 7 percent after California recently raised it again to $10.
On Monday, Democratic Gov. Jerry Brown and legislators reached a deal to increase the state's pay floor to $15 per hour by 2022-23. But the measure awaits approval from the full legislature.
The link between an increased minimum wage and increased sales at Wetzel's Pretzels is "not coincidence," Phelps said. "We have been up 4.5 percent historically for the last nine years."
"Low income people got a 10 percent increase, and probably a 30 percent increase in disposable income. So it's just great for our business," he said. "Ours is an impluse product. And these guys have extra money in their pocket today. So they can spend money."
Phelps said "it's crazy" that the federal pay floor has not been raised in seven years. The federal minimum wage stands at $7.25 per hour. "I think the minimum wage should increase more than every seven years."