Minimum wage increase forcing restaurants to pass operating costs onto consumer.
Consumers of fast food in California are paying more for meals after the state’s new minimum wage law went into effect, local media reports.
According to Fox 11 Los Angeles, the minimum wage increase for fast-food workers touted by Democrat Gov. Gavin Newsom that hiked hourly pay to $20 is negatively affecting consumers, who have to shell out more at restaurants.
“Fast food workers got a raise and customers are apparently paying the price — literally,” a Fox 11 anchor described.
“Since the minimum wage went up to $20 an hour, many restaurants have raised their prices, and one research company looked at 25 different chains and found that many of their items went up in cost.”
Some fast-food joints that increased prices include Wendy’s (8%), Chipotle (7.5%), and Starbucks (7%), according to the Kalinowski Equity Research firm.
Taco Bell and Burger King also raised prices by 3% and 2% respectively.
“The one chain that didn’t raise prices so far: McDonalds,” announced Fox11.
The predictable price rises come as some fast-food companies in the state also moved to cut staff ahead of the FAST Act (Fast Food Accountability and Standards Recovery Act) going into effect.
Business Insider reported in March that several pizza restaurants, including Pizza Hut and its franchisees Southern California Pizza Company and PacPizza, planned to lay off up to 1,200 delivery drivers in order to make ends meet.
