Fatburger became the latest fast food chain this week to signal a spike in prices ahead of the minimum wage increase affecting CA fast food workers.
Starting in April, you may want to hold more than the pickle at your favorite fast-food chain restaurant. The fast food industry's employee minimum wage will climb to $20 per hour on April 1 under a new California law affecting restaurants with at least 60 locations nationwide. Several major chains have said the law is forcing them to raise menu prices. McDonald's and Chipotle will both raise menu prices because of the new law, they announced last year.
The anticipated minimum wage hike is not only affecting fast-food menu prices but changing the way franchise owners are operating, from how many people they can employ to what benefits they might receive.
Though 557,000 workers will benefit from the raises, they may also see a drop in other areas of their work-life balance, such as removing the paid time off program.
There is a trickle-down effect for customers as rising menu prices hit their wallets. Some are driving past the drive-thru, opting to eat at home more. Still, starting in April, there may be more "disposable" income to spread around.
News of the impending price increases came as McDonald's and Chipotle saw income growth in the fall. McDonald's brought in $6.69 billion in revenue for the three-month period ending Sept. 30 (up 14 percent from last year). Chipotle reported $2.5 billion in revenue last quarter (up 11.3 percent), Patch has previously reported.
Chipotle's prices have risen as much as 9 percent at the 450 stores across the Golden State, Patch reported in October.
At a Southern California McDonald's, the Happy Meal prices on the app showed $5.99 for hamburgers and cheeseburgers and upwards of $6.49 for 4-piece chicken McNugget meals.
The price of a burger has also gone up exponentially in California, with many popular fast food chains hiking prices up by nearly 20 percent or more in recent years, according to a previous Patch report.
In recent years, the (fast-food) industry has seen an influx of older workers who can't find employment elsewhere, they're seeking a living wage. That's what the California law is meant to address.
Fewer workers will run the counters after April 1. Prepare to pack your patience while waiting for your orders.
When visiting events and local businesses, be sure to tell them Macaroni KID sent you... and don't forget to tell all your friends!
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