Fast Food Chains Warn Consumers , That Worker Pay Increases <br />Will Impact Prices.<br />'Newsweek' reports that franchises have <br />warned an increase of the minimum wage <br />for fast food workers in California could also <br />force menu prices to climb.<br />As of April 1, fast food restaurants in California <br />will have to pay employees at least $20 an hour, an<br />increase of four dollars from the current $16 an hour. .<br />Business owners have warned that the new law, <br />signed in by Democratic governor Gavin Newsom, <br />will have an impact on margins and consumer costs. .<br />At the end of October, McDonald's CEO Chris Kempczinski<br /> said that the impact of the minimum wage rise would <br />be partially "worked through with higher pricing.".<br />At the end of October, McDonald's CEO Chris Kempczinski<br /> said that the impact of the minimum wage rise would <br />be partially "worked through with higher pricing.".<br />According to McDonald's numbers, the price of <br />the signature Big Mac burger is currently $5.89 <br />in California, the 10th highest in the United States.<br />The latest data compiled by 'The Economist' shows that <br />the average price of a Big Mac nationwide is currently <br />$5.69, which is up from $5.36 at the same time in 2023. .<br />Last year, McDonald's , reported net profits of , almost $8.5 billion.<br />According to the company's latest financial reports, <br />sales increased 8.7% in the U.S. in 2023, which the <br />company attributed to "strategic menu price increases.".<br />According to the company's latest financial reports, <br />sales increased 8.7% in the U.S. in 2023, which the <br />company attributed to "strategic menu price increases.".<br />Meanwhile, Jack Hartnung, the CFO of fast food <br />chain Chipotle, told investors that the wage <br />increase would impact consumer prices with a <br />"mid-to-high single digit" percentage increase.<br />Meanwhile, Jack Hartnung, the CFO of fast food <br />chain Chipotle, told investors that the wage <br />increase would impact consumer prices with a <br />"mid-to-high single digit" percentage increase.<br />In December, Pizza Hut cited the wage <br />increase as the reason behind laying off <br />the company's in-house delivery drivers. .<br />In December, Pizza Hut cited the wage <br />increase as the reason behind laying off <br />the company's in-house delivery drivers.
