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These California Fast Food Restaurants Have Increased Prices Due to Minimum Wage Hike

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These California Fast Food Restaurants Have Increased Prices Due to Minimum Wage Hike

These California Fast Food Restaurants Have Increased Prices Due to Minimum Wage Hike

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On April 1, California started enforcing a law that increased fast-food employees’ minimum wages to at least $20 an hour. For months before the law took effect, various restaurants claimed they would have to raise their food prices to offset the extra they are now paying their employees. One month later, data has shown that many fast-food eateries have truly raised their food prices. Here is a list of those who have. 

Burger King

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Burger King was one of the first fast-food chains to increase prices. According to new data, the eatery has raised prices by at least 2% since April 1. This revelation comes from a report by Kalinowski Equity Research. The data examined Burger King’s prices before April 1 and after the law went into effect.

McDonald’s

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Franchise owners own many McDonald’s branches around the country. As a result, some McDonald’s in California have raised prices while others haven’t. Scott Rodrick owns 18 McDonald’s in northern California and has already said he would raise prices at all his locations. Rodrick has also suggested that he may change the restaurant’s hours to save profits.

Wendy’s

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According to Kalinowski Equity Research’s latest report, Wendy’s is another fast-food eatery in California that raised prices after April 1. The data shows that menu prices at Wendy’s California locations rose by about 8%.

Taco Bell

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The new data also indicates that Taco Bell is one of those that have increased the price of its food throughout its California locations. According to this Kalinowski report, menu prices in Taco Bell rose by about 3% after California’s new law went into effect.

Fatburger

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The Fatburger eatery revealed they would have to raise prices at their California locations as far back as January before the law even began. Franchise owner Marcus Walberg, whose family runs four Fatburgers in Los Angeles alone, said this would occur. According to Walberg, prices will likely be raised by about 8% to 10%. Walberg also indicated he was going to cut PTO for his employees and stop hiring new workers.

Chipotle

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Like Fatburgers, Chipotle is a restaurant that revealed it would raise its prices at its locations before the law even went into effect. According to the Kalinowski report, it’s done just that. According to the data, Chipotle raised their prices by 7.5% at their California locations.

Vitality Bowls

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Like McDonald’s, Vitality Bowls is another company allowing people to run franchises. Brian Hom, one Vitality Bowls franchise owner in the Golden State, has had to increase prices at his locations. Hom’s two Vitality Bowls locations in San Jose have raised prices by about 5% to 10% since April 1, and they have also paused hiring.

Starbucks

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For months before this new California law became official in April, many publications wanted to know what Starbucks had planned for this minimum wage increase. The company hinted that it would raise prices, and it appears they’ve done this. Data shows that Starbucks throughout the state has increased prices, so their beverages are now about 50 cents more than they used to be.

Fast Food Remains More Expensive

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Many analysts have pointed out that fast food has become increasingly expensive in California and throughout the country. This is mostly due to inflation, which has caused prices at fast-food eateries to surge. Now, food prices at these locations may continue to rise because of this new minimum wage law.

Other Changes in Fast Food Restaurants

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While many fast-food locations increased their food prices, other restaurants have decided to try other methods to save money while also paying their employees more. For example, a One Burger franchise owner has already claimed that he’ll try installing order kiosks at his locations. This will allow him to cut employees and save money.

Some Places Refuse To Increase Prices

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Some fast food places have been clear; they have no choice but to raise menu prices in California. However, other restaurants have found ways to keep prices low. These restaurants have refused to raise their prices, as they want consumers to keep patronizing them. In-N-Out’s president Lynsi Snyder recently said she kept prices from rising too high, even though there was a push for item prices to rise because of this new minimum wage law and inflation.