California Fast-Food Prices Surge 7% Ahead of $20 Minimum Wage Law

The steep rise in menu prices is the highest in the U.S., affecting major chains and leading to operational changes like reduced work hours.

Fast-food prices in California saw a 7% increase in the six months leading to the state's new $20 minimum wage law, marking the highest inflation rate in the U.S.
Major chains such as Wendy’s, Chipotle, and Starbucks raised their prices by up to 8% in anticipation of the wage increase.
The price hikes have prompted fast-food franchises to cut back on work hours, delay capital improvements, and accelerate the introduction of self-service kiosks.
Areas like Northern California experienced the most significant price inflation, with some regions seeing increases up to 8.9%.
The increase has made fast-food dining less affordable for many Californians, impacting consumer behavior and business operations.