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California Fast-Food Chains Increase Prices Following Minimum Wage Hike

As California's minimum wage for fast-food workers rises to $20, businesses adjust with significant menu price increases and staff reductions.

  • California's new law raises the minimum wage for fast-food workers to $20, impacting chains with over 60 locations.
  • Prices at major chains like Chipotle and Chick-fil-A have seen increases between 6% and over 10% since the law's implementation in April.
  • Some chains, including a Pizza Hut franchisee, have responded with layoffs, citing increased labor costs.
  • Prior to the wage increase, California already led the nation with a 7% rise in fast-food menu prices.
  • The wage hike aims to support nearly 10 million workers nationwide, including a significant number of women and working parents.
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