Fast Food Prices Soar as $20-an-Hour Minimum Wage Law Takes Effect in California
ICARO Media Group
The Post conducted an investigation into the impact of the law on consumer costs, revealing mixed results.
Burger King, one of the renowned fast food chains, experienced the most substantial price hike. On March 29, a Texas Double Whopper meal was priced at $15.09. However, since the law went into effect on April 1, the same meal soared to $16.89 – a staggering increase of $1.80. Other menu items at Burger King saw increases ranging from 25 cents to a dollar. Despite requests for comment, Burger King did not respond.
Hart House, a fast food chain established by actor Kevin Hart, also implemented price increases. Some items witnessed a rise of up to 25%. Prior to the law taking effect, a large order of fries cost $4.49. As of April 1, the price of fries surged to $5.99. Additionally, milkshakes of all sizes became $1.00 more expensive, while most sandwiches saw a 50-cent increase.
Meanwhile, In-N-Out Burger displayed more moderate price hikes. Burgers rose by approximately 25 cents, with sodas increasing by a nickel.
Consumers provided starkly contrasting opinions on the price increases. Shawn Fields, a customer at In-N-Out Burger, considered the nominal increase to be reasonable, stating, "It's such a nominal increase." However, Ivan Moreno, purchasing a meal at Burger King, expressed dissatisfaction, claiming that when prices rise, "everything else goes up" and highlighting the burden on consumers.
The Post's investigation further discovered that several other fast food chains, including Chick-fil-A, Wendy's, and McDonald's, showed no change in their menu prices. However, Scott Rodrick, a McDonald's franchisee who owns 18 restaurants in Northern California, revealed that he had already increased prices by 5% to 7% in anticipation of the new law going into effect.
The legislation, enacted by the state Legislature, aims to raise wages for over 500,000 individuals working in fast food restaurants statewide. The law applies to national chain restaurants with at least 60 establishments nationwide, that offer limited or no table service. Prior to this law, the minimum wage for fast food workers in California was $16 per hour.
As the new minimum wage law takes full effect, consumers will likely continue to feel the impact of higher prices at fast food chains across California. While some view the increases as reasonable, others express concerns about rising costs across the board. It remains to be seen how this legislation will shape the fast food industry and its customers in the months and years to come.