Within the next year, 93 percent said they would have to increase prices, the survey of 182 fast food operators found.
CALIFORNIA — Restaurants are raising prices and cutting hours and staff in the wake of California’s $20 fast food minimum wage, with more of the same expected in the next year, according to a recent survey of operators.
The Employment Policies Institute, described by Influence Watch as a right-leaning research organization focused on employment growth, surveyed 182 California fast-food restaurant operators during June and July, following the April 1 start date for the new minimum wage, up from $16 per hour to $20.
Of those surveyed, 98 percent said they had already raised menu prices due to the wage spike, while 89 percent cut worker hours and 70 percent reduced or consolidated jobs. Within the next year, 93 percent said they would have to increase prices, 87 percent said they would need to reduce hours, and 74 percent said they would have to cut or consolidate jobs.
“Unfortunately for California limited-service restaurants, 92 percent of owners think that raising menu prices will adversely affect customer foot traffic,” according to the institute.
MORE: