South LA Fast Food Consumers Brace for Price Hikes Amidst Limited Options
ICARO Media Group
In South Los Angeles, where residents already face limited access to affordable, healthy food, the impending increase in the minimum wage for fast-food workers is expected to exacerbate the challenges faced by the community. According to USC's Institute for Food System Equity, approximately 40% of South LA residents live in a food desert with no nearby supermarkets, relying heavily on fast food for their daily nutrition. However, with chains planning to raise prices to offset increased labor costs resulting from the raised minimum wage, accessing affordable meals is set to become even more difficult.
On the bustling six-lane stretch of Crenshaw Boulevard, fast-food chains like McDonald's, Yoshinoya, El Pollo Loco, Little Caesars, Panda Express, and Taco Bell dominate the scenery, further highlighting the lack of grocery store options. The imminent increase in the minimum wage for fast-food workers, from $16 to $20, has raised concerns among consumers and experts alike.
Roshonda Baker, a caretaker for psychiatric patients, voiced her frustration over the anticipated price hikes, which are predicted to be approximately 4% to 5%. As she sat in her car near a McDonald's on Crenshaw, Baker expressed concern for families who may struggle to afford fast food, as children often prefer it over home-cooked meals. She shared her plans to reduce fast food consumption and prepare more meals at home to save money. However, she lamented that these price hikes would only disadvantage consumers.
The Times reached out to several fast-food chains, including those present on Crenshaw, with mixed responses. While some declined to comment, others acknowledged the impending price increases. San Diego-based Jack in the Box stated that raising menu prices would support their franchisees and enhance the customer experience.
While some consumers expressed support for the wage increase and were willing to pay higher prices for fast food, others expressed concerns. Economists and public health experts highlighted the difficulty of breaking ingrained eating habits and the limited alternative options available in food deserts. They pointed out that fast-food companies are skilled at calibrating price increases to avoid losing too many customers.
Kayla de la Haye, director of USC's Institute for Food System Equality, emphasized the need for affordable and convenient options in South LA, where historical under-investment has resulted in a lack of grocery stores. For many residents, fast food has been the most accessible and affordable option, making higher prices a bitter pill to swallow.
The new minimum wage law, encompassing both franchises and corporate-owned stores with over 60 locations in the U.S., is expected to bring about layoffs, automation, and reduced working hours as fast-food companies attempt to mitigate increased labor costs. Matt Haller, president of the International Franchise Association, highlighted the significant financial burden faced by quick-service restaurants, leading to potential job cuts and struggles for small businesses to stay afloat.
While fast-food companies may raise prices, they need to ensure they do not alienate their target demographic, often lower-income individuals. Shon Hiatt, associate professor of management and organization at the USC Marshall School of Business, emphasized the importance of balancing price increases with consumer affordability to maintain customer volume.
However, some experts cautioned that the lack of food options in South LA could make it easier for fast-food companies to "pass along" the higher costs, potentially harming financially vulnerable individuals. These price increases create a paradox as residents in one of the region's highest concentrations of poverty are now expected to spend more on food. The area also has the highest rate of food insecurity in Los Angeles County, according to a 2018 report by the L.A. County Department of Public Health.
Within this context, Alberto Corona, a South LA resident, headed to a Yoshinoya restaurant on Crenshaw to pick up a meal for his grandson. He wistfully reminisced about the past when places like Yoshinoya were considerably more affordable.
As South LA residents brace themselves for higher prices at their local fast-food establishments, the impact on their daily lives and overall financial well-being remains to be seen. With limited alternatives and a historic lack of investment in the community, these price hikes present an added burden for those already battling food insecurity.