California’s Fast Food Minimum Wage Launches Prices Skyward
The socialist state of California decided that fast food workers need a minimum wage of $20 per hour starting next April. What this means for its citizens is that food prices are set to skyrocket even more, as two major chains have already announced increases.
McDonald’s and Chipotle declared their intentions to raise menu prices in 2024. This came in the aftermath of Democratic Gov. Gavin Newsom signing the measure into law to hike worker wages.
Chipotle Chief Financial Officer Jack Hartung said Thursday that his company will hike prices in the “mid-to-high single-digit” range. McDonalds did not immediately disclose how high the cost of a Big Mac will go.
However, the word from an advocacy group representing over 1,000 McDonald’s franchises in the U.S. gave some indication. The National Owners Association in a September memo said the California move will cost each state restaurant at least $250,000 yearly.
Undoubtedly, as Democrats fail to admit, these costs will be passed directly on to the public.
— FOX 11 Los Angeles (@FOXLA) November 2, 2023
Some franchisees were reportedly upset over the parent company’s role in working with state officials on the minimum wage increase. McDonalds did not comment on the financial hit that will be taken by its California restaurants.
The nation’s largest fast food chain has already raised prices across the board amid Biden’s surging inflation. One location in Connecticut now charges $18 for a Big Mac Meal.
The company revealed Monday that its third quarter revenue shot up 14% in the wake of “strategic menu price increases.”
McDonald’s leadership previously acknowledged that soaring costs led to many U.S. consumers paring back on its products. In the past quarter, Americans earning $45,000 or less visited its locations fewer times as prices increased.
And there is already inflation across the board in the fast food industry. The latest figures from Washington revealed the cost of eating out jumped 6% in September compared to the same period in 2022.
At least for one state, that number will surely rise next April. That’s when California’s fast food minimum wage jumps to $20 per hour, a leap from the previous minimum platform of $16.21.
Fast food workers in Washington, D.C., now make a minimum of $17 per hour.