By Ricardo Roura
Apr 18, 2024, 9:44 PM EDT
Approximately, Fast food prices have increased by up to 8% in California since the law that increased the minimum wage for workers in this industry came into effect on April 1, from $16 to $20 an hour, according to a recent study.
According to research by Kalinowski Equity Research, the prices of food in some restaurants has risen since April 1.
According to the study, Wendy’s Leads in Price Increases of fast food foods with 8%.
On the menu of Chipotle restaurants, food has increased by an average of 7.5%; while at Taco Bell and Burger King, the increases reach 3% and 2%, respectively.
Food at Starbucks also saw increases, with an average of 7% more expensive. The coffee chain confirmed the increase in its sandwiches, saying it was largely due to the increase in California’s minimum wage for fast food workers.
Keep reading: What types of restaurants are exempt from the fast food minimum wage law in California?
The increase in food prices represented one of the alternatives that owners or franchisees of fast food restaurants had. to face the salary increase of its workers to $20 dollars an hour.
Among the other alternatives available were cutting its workforce to a minimum sufficient to offer decent service to customers, or permanently closing stores due to not having the resources to meet the industry’s new minimum wage.
In response to rising fast food prices, the California Restaurant Association said it was a result “completely predictable” given the increase in the minimum wage.
Keep reading: In effect, minimum wage of $20 an hour for fast food workers in California
“Since it came into effect, job losses, reduced work hours, restaurant closures and highest prices for California consumers”Tired of inflation, they have continued,” the group told NBC.
In Southern California, with a high number of fast food restaurants in its different locations, There is high pressure for this salary increaseboth for franchisees and owners, and for the customers themselves.
“Used to pay $10, now it’s $13. Over time it will be like $6 or $9 more, just keep going. If I’m going to start paying restaurant prices, I’m going to have to go somewhere else,” said Owen Peralta, a Chipotle customer in Brea.
Keep reading: Which fast food workers in California will be paid $20 an hour?
In the case of Chipotle, chicken burritos are 8.3% more expensivewhile meat burritos will cost customers 7% higher.
In the opinion of other customers, the increase in food prices is changing the way fast food is perceived and consumed.
“(Rising prices) probably won’t stop me, but maybe I will eat less out of home“acknowledged Brea resident Cindy Tran.
Keep reading:
· McDonald’s franchisee faces challenge over $20 per hour minimum wage in California
· Panera Bread franchise owner in California increases minimum wage to $20 per hour
· Pizza Hut operators in California fire all their delivery drivers due to new minimum wage