In California, the new minimum wage of $20 for fast food workers has already generated a considerable increase in prices on several menus of the main chains operating in the state.
According to a report from the New York Post, since Monday, the price increase ranges between 25 cents and $4, maintaining an average increase of $2 on the menus.
These increases come after a law was enacted on Monday requiring fast-food establishments to pay their workers $20 an hour, a wage previously set at $16.
For example, at Burger King, the combos increased considerably.
The Texas Double Whopper was $15.09 on March 29 and was up nearly two dollars by April 1 to $16.89.
The Big Fish, the chain’s breaded fish burger, saw a much more significant increase: from $7.49 to $11.49, four dollars in total.
Overall, most products increased between 25 cents and a dollar.
However, according to the New York newspaper, Burger King is not alone in these price increases.
At Hart House, a fast-food chain founded by actor Kevin Hart, prices increased by up to 25%, roughly the percentage increase in the minimum wage for fast-food workers.
Before the bill was signed into law on Monday, large fries at Hart House were $4.49, and now they’re $5.99.
Likewise, shake prices also increased by one dollar, and most sandwiches increased by 50 cents.
Other chains also showed moderate increases between 25 and 50 cents.
While some Californian customers agreed with the price increase, considering it sensible, others opposed the increase in the minimum wage because it automatically makes menus more expensive.
“To be honest, I don’t like it because then everything else goes up,” Iván Moreno, who was at Burger King, told the New York Post. “These people have to make a living one way or another, but then [the restaurants] have to up their prices.”
Other franchises, such as Chick-fil-A, Wendy’s, and McDonald’s, have not raised prices as of yet.
However, it seems that it is a matter of time before McDonald’s also raises its prices due to the new increase in the minimum wage.
Scott Rodrick, owner of Rodrick Management Group, a McDonald’s franchisee with 18 restaurants in Northern California, suggested to CNN that the increase was imminent.
“We have looked at price, although I can’t charge $20 for a Happy Meal,” Rodrick told CNN. “As a business owner, when you’re dealing with this kind of extraordinary overnight change, you know, a 25% increase in wages,… (no) stone has to remain unturned.”
Rodrick Management Group has already had to increase prices to ensure its sustainability. Over the past three months, the group has increased menu prices by 5% to 7% in anticipation of the new law’s implementation.
Ultimately, the increase in the minimum wage in California had an expected result: Californians will now pay more for their Whopper.
