Fast food workers in California saw their minimum wage jump to $20 an hour on April 1st. Now, customers are seeing just how much fast food companies in the state have raised their prices.
Data by Kalinowsky Equity Research and cited in an article by The New York Post, found that Chipotle Mexican Grill increased its prices by 7.5% and Wendy’s prices went up by 8%. It also found that Starbucks raised its prices by 7% and Taco Bell’s prices went up by 3%.
A couple of months before the minimum wage increase, Chipotle Chief Financial Officer Jack Hartung warned investors during a fourth-quarters earnings call that menu prices would be increasing, according to Business Insider. At the time, it was unclear how much the prices would be raised.
Some Southern California residents told KNX News’ Jon Baird they’ve noticed how much more they’re paying to eat fast food.
“We pay more, but they still get your orders wrong though,” one man said.
“It’s ridiculous. The prices are way too high,” one woman said.
One woman, however, said she believes the high prices will be the tipping point for everyone to make different lifestyle choices.
“This will be the tipping point for everyone where it's cheaper now to eat healthy and to eat at home,” she said.
The research did find that the only fast food company that’s held the line on raising prices was McDonald’s.
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