Boots & Sabers

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0709, 01 May 24

Californians Shocked at Food Prices After Government Forces Wage Increases

Cry harder.

Greg LaVay, a 79-year-old retired entrepreneur from San Diego, says he used to visit McDonald’s a few times a month — but recently decided to switch to sit-down restaurants for dinner instead.


Why? LaVay noticed the price of hamburgers in his area inching up to $2.50 apiece, with a Big Mac going for $5.39 today.


“I feel ripped off a little,” he told The Wall Street Journal.

Since September’s ruling that California fast food franchisees would be required to increase its minimum wage for employees to $20 starting in April, several eateries have embarked on cost-cutting measures such as raising menu prices.


A recent analysis from market research firm Datassential reveals the Golden State’s fast-food and fast-casual restaurants, like McDonalds, Chick-fil-A and Pizza Hut, have lifted prices by about 10% overall since September. This growth far surpasses that of the U.S. as a whole, which has seen chains inflate prices by just over 5%.


Several fast food chains have said they’re raising menu prices in response to the minimum wage hike.


0709, 01 May 2024


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