California fast-food prices are up as much as 8% since minimum wage hike
Since California’s new law went into effect to raise the minimum wage of fast-food workers, who are employed by chains of 60 restaurants and more, from $16 to $20 an hour, some fast-food chains have raised their food prices, according to a new study.
Kalinowski Equity Research said that menu prices at some restaurants have gone up as much as 8% since April 1.
Wendy’s is leading the price hikes at 8% while Chipotle’s food prices have gone up 7.5%.
As Starbucks’ food items are now 7% more expensive, customers at Taco Bell and Burger King are now paying 3% and 2% more respectively.
Starbucks confirmed its price increase, saying it was largely due to the minimum wage increase in the state.
Wendy’s, Chipotle’s, Taco Bell and Burger King did not respond to NBC Los Angeles’ request for comments and confirmation.
In response to the price increases, the California Restaurant Association said they were the “entirely predictable” results of the minimum wage increase.
“Since it took effect, job losses, reduced working hours, restaurant closures and higher prices for California’s inflation-weary consumers have been ongoing,” the group said.
Southern California who frequented fast-food restaurants for convenience and affordability said they are feeling the squeeze.
“I used to pay $10. Now it's $13. Over time that’ll be like $6 more or $9 – it just keeps going,” Owen Peralta, a Chipotle customer in Brea, said. “If I'm going to start paying restaurant prices, then I'm going to have to go somewhere else.”
Specifically in the case of Chipote, its chicken burritos are now 8.3% pricer while steak burritos will cost customers 7% more.
Other customers hinted the rising food prices are changing the way fast food is perceived and consumed.
“[The rising prices] probably won’t stop me, but I’ll probably eat out less,” Cindy Tran, a Brea resident, said.
“I’ll decide not to eat out probably a couple of times a month,” Mike Larson added.
