LA Times Seems Surprised That Restaurants Are Raising Prices With $20 Minimum Wage

If only someone had warned the LA Times, which was super supportive over raising the minimum wage for a specific industry, that there would be Unintended Consequences. First, though

I’m shocked!

Starbucks, Chipotle, McDonald’s: Who’s raising prices as California fast-food law starts today

Your next burrito bowl might cost you more than $12 thanks to a California law that’s significantly increasing fast-food workers’ pay, a cost increase that big chains such as Chipotle say they could pass along to consumers.

The new law takes effect today.

During an earnings call in February, Chipotle’s chief financial and administrative officer, Jack Hartung, warned, “To cover the cost of the wage increase, we would need to take a mid-single-digit price increase in California.”

The law, Assembly Bill 1228, was signed by Gov. Gavin Newsom in September and takes effect Monday. It requires restaurants — corporate- and franchise-owned — with 60 establishments nationwide to bump their California-based workers’ pay to $20 an hour, $4 higher than the overall state minimum wage of $16 an hour.

Though Chipotle has not yet announced a final decision on new pricing, many other chains, such as McDonald’s, Starbucks and Jack in the Box, say they are also planning to push that increase onto consumers or change their operations. The law also called for the creation of a restaurant industry council to set future pay raises and advise on working conditions.

Here are the fast-food favorites that are hiking their prices or changing how they operate.

Wait, Starbucks? Aren’t they like super duper left wing and support every Democratic Party initiative? Oh, right, as long as it doesn’t affect their own operations, just like they were against their own employees unionizing. Also mentioned are pizza places which are simply letting employees go. Then there are companies like Auntie Anne’s and Cinnabon, with the owner considering layoffs and closing some locations. Jack In The Box states that menu prices could go up 6% to 8%. There are consequences to Government.

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One Response to “LA Times Seems Surprised That Restaurants Are Raising Prices With $20 Minimum Wage”

  1. Dana says:

    Our distinguished host began:

    If only someone had warned the LA Times

    Having lost at least 115 newsroom employees to layoffs in January, one would think that the survivors would understand at least a little bit about business and economics, but . . . .

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