McDonald’s, Chipotle and Jack in the Box are among the restaurants anticipating price hikes due to the California minimum wage law
Fast-food prices in California are set to rise this spring with businesses responding to the state’s $20 per hour minimum wage law for fast-food workers that will take effect on April 1, 2024.
The law was signed by California Governor Gavin Newsom last fall and will require a $20 per hour minimum wage at all restaurants with at least 60 locations nationwide – though the law includes an exception for restaurants that make and sell their own bread.
Several major fast-food franchises, including McDonald’s and Chipotle, have already signaled that prices will have to rise in response to the increased labor costs.
“Everyone is going to have to pay more,” Jack Hartung, chief financial officer of Chipotle, said in the Wall Street Journal. The California-based company expects to raise prices by about 5% to 9% more at its restaurants in the Golden State to cover the costs.
I predict that the fast food places mentioned will simply replace the vast majority of workers with automation. So much for the minimum wage hike, and welcome to business – when one cost rises it must be offset.
Already happened in part. If you’re ordering on a screen instead of by talking to a worker, that’s automation. And you’re pouring your own drinks instead of being served. Those are fast food reactions to minimum wage increases of the recent past. More to come as foot traffic withers after newest uneconomic wage increases take hold.
That crap food is to expensive as it is. I went to Chipotle for lunch and it was $20.
In short order, only McD’s employees will be able to afford to eat there. Same for competitors.
My crock pot & air fryer don’t have a drive-thru but price, taste, variety, etc. are winners.
Their GARBAGE Not worth Half of what they get NOW !!!! WOKE GO BROKE ask Bud Lite & Coke !!!!!!