California’s $20 minimum wage hike leads to job losses, higher prices.

The ripple effects of California’s $20 minimum wage hike are becoming increasingly evident, with fast food restaurants across the state grappling with job cuts and price increases, further burdening businesses, workers, and consumers alike.

• California’s minimum wage increase to $20/hour has led to job losses, reduced working hours, restaurant closures, and higher prices.
• Fast food restaurants in the state have raised prices, with Wendy’s increasing prices by roughly 8%, Chipotle by 7.5%, Taco Bell by 3%, Burger King by 2%, and Starbucks by about 7%.

Source: legalinsurrection.com/2024/04/california-fast-food-prices-soar-as-minimum-wage-hike-takes-toll-on-businesses-workers-and-customers/

Potential Implications:

• The minimum wage hike intended to benefit workers has resulted in unintended consequences, including job cuts and increased prices, affecting both businesses and consumers.
• Rising prices may exacerbate inflation concerns and impact the purchasing power of California’s residents, particularly the middle class.
• Fast food chains’ implementation of self-serve kiosks and other cost-saving measures highlights the challenges faced by businesses in adapting to higher labor costs.

Who saw this coming?

$20 minimum wage prompts fast food price increases in California. pic.twitter.com/v7BX4mdAMO

— Citizen Free Press (@CitizenFreePres) April 18, 2024