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As if the high price of food couldn’t get any higher, FOX Business announced that prices at Chipotle, McDonald’s and other fast-food chains in California are rising after a minimum wage hike went into effect.
The new law mandates fast-food workers to make $20 an hour in California, and it went into effect on April 1
Chipotle said prices went up one percent during the first week of April, compared with last year, according to the Wall Street Journal. The fast-food giant has nearly 500 California restaurants.
The new law impacts restaurants with 60 or more locations nationwide, except for those who make and sell their own bread, and includes Chipotle, MacDonalds, Pizza Hut, Dominoes and Chick-Fil-A.
Chick-fil-A increased its prices more than 10 percent on average in California since Mid-February. A spicy chicken sandwich, for example, has gone up 13 percent, from $6.29 to $7.09.
Franchise owners blame the new California law for rising costs. Chipotle Chief Executive Brian Niccol said, “The state isn’t making it easy.”
Customers are feeling the squeeze, and like franchise owners, are not happy campers. “I feel ripped off a little,” one MacDonalds customer said.
California Gov. Gavin Newsom signed the legislation, AB 1228, into law in September.
The overall minimum wage for other workers in California is $15.50 an hour, among the highest of any state. The federal minimum wage, which has remained unchanged since 2009, is $7.25 an hour, or $15,080 a year for an employee working 40 hours a week.
Source: Fox Business News
