A new California law mandating a minimum salary of $20 per hour for fast-food employees went into force on April 1st.
Several state-wide restaurant businesses have reportedly implemented price hikes in response to the higher minimum wage. Limited or no table service in restaurants that are a member of a national chain with 60 or more locations throughout the country is subject to the regulation.
In the past, these eateries were legally required to pay a minimum wage of sixteen dollars per hour. Reports indicate that businesses raised menu prices to compensate for the four-dollar bump.
Prices at In-N-Out Burger increased by 25 cents for burgers and one nickel for soft drinks.
The price of milkshakes, sandwiches, and fries went up by one dollar, 50 cents, and $1.10, respectively, at Hart House, founded by comedian Kevin Hart.
From March 29th to April 1st, the price of a Texas Double Whopper at Burger King increased by $1.80, and the Big Fish Meal increased by $4.
No price hikes have been announced at Chick-fil-A, McDonald’s, or Wendy’s yet, but it’s safe to assume they will soon.
Pizza franchises have announced plans to reduce employee payrolls. Round Table, a California-based restaurant franchise with 400 locations, has announced that third-party delivery services will replace its delivery drivers. Consequently, delivery service rates will increase, and customers will experience even higher prices.
Layoffs will occur within the workforce. Those who are retained will continue to work as usual and even take on additional responsibilities during the shift for which the recently terminated employee was responsible.
Consumers will also feel the pinch of price hikes.
Prices rise, wages fall, the labor force shrinks, and the cycle continues.
Democrat Governor Gavin Newsom extended a dispensation to the national brand Panera Bread from the state’s minimum wage legislation. The Fast Food Accountability and Standards Recovery Act, which Newsom amended, included a clause exempting restaurants that make bread as a standalone product from the increased minimum wage.
One of Newsom’s closest friends and a major backer of his political machine is the millionaire CEO of Flynn Restaurant Group, who operates over twenty Panera locations.
Following the revelation, customers in California called for boycotts of Panera Bread.
