CA Fast Food Joints To Hike Prices In Response To Newsom’s Minimum Wage Increase

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McDonald’s and Chipotle restaurants in California will hike prices in response to a minimum wage increase signed by Democratic Gov. Gavin Newsom, according to New York Post.

McDonald’s CEO Chris Kempczinski stated that the new $20-per-hour minimum wage will force the restaurant to increase prices, the Post reported. The chain has not publicized what the new prices will be.

McDonald’s revealed that revenue increased by 14 percent in the most recent quarter, the outlet noted. (RELATED: LINDA MCMAHON: California’s Anti-Worker Policies Are Coming To Washington)

Jack Hartung, Chipotle’s chief financial officer, said that the restaurant chain is looking to increase prices by “mid-to-high single-digit[s],” per the Post.

Despite the price increases, Hartung emphasized that Chipotle is still an affordable option.

“I think the Chipotle value, when we haven’t raised prices in over a year until this latest action, is coming through, and people are choosing to dine at Chipotle because we are very affordable,” he said, according to the outlet.

California passed a bill in 2016 to gradually bring the state’s minimum wage up to $15 an hour, a move one study found had cost the state jobs. In 2022, Newsom signed a bill establishing a council with the power to raise the minimum wage for California fast food workers to more than $20 per hour.

“Today’s action gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry,” Newsom said after signing the 2022 bill.