California's fast-food chains like Chipotle and McDonald's are raising prices in response to the state's minimum wage hike to $20 per hour. Chipotle's wage expenses in California surged by 20%, leading to a nearly 7% increase in menu prices. The new law has sparked debates on its impact on businesses and the labor market.
A lot of chatter around the increase in min wage for fast food workers in Ca from $16 to $20. For perspective the average hourly wage for leisure & hospitality workers in Ca was $25.82 in March so likely a case of regs catching up to reality than a new inflation impulse
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 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.
#California’s ban on “junk fees” is getting its #restaurant industry worked up. Could restaurant surcharges be a thing of the past? This comes after fast-food workers received a minimum wage of $20 per hour. https://t.co/TRKKrk4prS
Prices at California Chipotle, McDonald's and other fast-food chains are rising following minimum wage hike https://t.co/naYPNziwXK