California's new legislation, which bans restaurant surcharges and mandates a $20/hour minimum wage for fast-food workers, is causing significant economic repercussions. Business leaders have warned that the removal of service charges could lead to layoffs and more business closures. Concurrently, the wage increase has prompted establishments like Chipotle to raise their menu prices by nearly 7% to offset the 20% surge in wage expenses. This policy shift is intended to simplify pricing for consumers by integrating all fees into the menu prices, but it also raises concerns about the broader economic impact, including potential price hikes across various services.
"California says restaurants must bake all of their add-on fees into menu prices" https://t.co/xOIoS0jxQa @MrRBourne
California restaurant prices to surge under controversial new law - here's what three famous meals could cost you https://t.co/hvXD6j3DbK https://t.co/KAAPkjFV6k
After California's new mandatory $20 fast-food wage law, allied journalists gushed that small businesses were going to benefit because more would go there. Now those employees, and everyone else, is demanding $20 an hour. It's almost like politicians don't get how markets work. https://t.co/Y80xLh80K7
How the 'junk fee' ban will affect prices displayed by California restaurants and other businesses https://t.co/1oERBM26Pm
How did California’s new $20/hour minimum wage law impact Chipotle? Their wage expenses in the state shot up 20%. So, they increased menu prices by almost 7% right away. Same story playing out across the state.
As California bans restaurant surcharges, businesses leader says layoffs coming Businesses say that banning service charges will mean pink slips for workers, and will lead to more business shutdowns in the state. Read more ⬇️ https://t.co/xe2Hxcl9Wg