Prices at California Chipotle, McDonald's and other fast-food chains are rising following minimum wage hike
Fast-food workers make $20 an hour in California, per the new minimum wage law
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Prices at Chipotle, McDonald's and other fast-food giants in California are rising after a minimum wage hike went into effect.
"Chipotle said in an investor call Wednesday that prices at its nearly 500 California restaurants climbed 6% to 7% during the first week of April compared with last year, playing out across its menu," The Wall Street Journal reported Sunday.
"The state isn't making it easy," Chipotle Chief Executive Brian Niccol reportedly said.
CALIFORNIA'S $20 MINIMUM WAGE FOR FAST-FOOD WORKERS GOES INTO EFFECT
Prices at Chipotle, McDonald's and other fast-food giants in California are rising after a minimum wage hike went into effect. (Getty Images)
"Similar to others in the restaurant industry, we implemented a statewide price increase in light of new legislation in California increasing the wages of restaurant workers," Chief Corporate Affairs Officer for Chipotle, Laurie Schalow, told Fox News Digital in a statement.
"I feel ripped off a little," Greg LaVay said of rising prices at McDonald's.
Prices for Chick-fil-A in Los Angeles are also putting the squeeze on customers.
"The price for a spicy chicken sandwich at that location had gone up to $7.09 from $6.29, or 13%, since mid-February, according to research by Gordon Haskett Research Advisors," The Journal revealed. "Chick-fil-A's prices increased 10.6% on average in California during that time period, Gordon Haskett found."
California's new law boosting the minimum wage for fast-food workers in the state to $20 an hour went into effect on April 1, impacting restaurants that have at least 60 locations nationwide, except those that make and sell their own bread.
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.
CALIFORNIA FOOD CHAINS LAYING OFF WORKERS AHEAD OF NEW MINIMUM WAGE LAW
Los Angeles, CA - September 28:Gov. Gavin Newsom signs legislation raising California fast food workers minimum wage to $20 an hour at SEIU Local 721 in Los Angeles on Thursday, September 28, 2023. Newsom gave Anneisha Williams, who works at Jack in ( Sarah Reingewirtz/MediaNews Group/Los Angeles Daily News via Getty Images) / Getty Images)
Other companies, including Chick-fil-A, Domino's, Burger King, Pizza Hut, and Jack in the Box have also raised prices since September, The Journal reported.
"Despite the challenging operating environment for small business owners in California, we and our franchisees remain committed to our heritage of providing great value," McDonald's USA told Fox News Digital in a statement. "While pricing is set by individual franchisees and varies by restaurant, McDonald's is competitive when it comes to affordability across the state."
Chick-fil-A and Gov. Newsom's office did not respond to requests for comment from Fox News Digital.
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Note: This article was updated with responses from Chipotle and McDonald's.
Fox Business' Breck Dumas contributed to this report.
