California’s $20 minimum wage led to fast food price hikes, lower foot traffic, study shows.
In the six-month period leading up to the new law being enacted, fast food prices in California rose on average by 7% — forcing franchisees in the state to slash work hours, postpone capital improvements and expedite the deployment of automation features such as self-serve kiosks.
The Placer.ai report found that casual dining chains may be benefiting from the erosion of traffic at fast food restaurants.
Olive Garden and Chili’s locations in California have seen an uptick in visits that outperformed the national average since the minimum wage law went into effect, according to the report.
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