The state of California is known to be one of the most progressive states in America. However, some of their progressive policies are biting them back as they are somewhat backfiring. Conservatives are constantly showing major cities in the state suffering from a rise in homeless individuals. Now, it appears that affordable fast food restaurants are also raising their prices.
According to Fox News, both McDonald’s and Chipotle plan to increase menu prices in California due to recent minimum wage hikes signed into law by Governor Gavin Newsom. McDonald’s CEO, Chris Kempczinski, acknowledged the wage impact for California franchisees and the need for higher pricing.
Furthermore, he also mentioned considerations regarding productivity and mitigation efforts. Chipotle’s chief financial officer, Jack Hartung, indicated that their chain will likely raise prices by a “mid-to-high single-digit” percentage in the state. These price increases follow the minimum wage hike for fast food workers in restaurants with over 60 locations nationwide. Inflation and rising costs have prompted such adjustments in recent years.
California governor criticised for new minimum wage
https://twitter.com/brownie_terror/status/1719574383000478083?s=20
Several X users are stating that Governor Newsom is making it unaffordable for the average Californians. It is well known that the state is an expensive one. Property prices are rather expensive on the west coast and apparently there are rumours that a new tax will be implemented for luxury homes there.
Companies will leave. How do you lose McDonalds? They will start implementing this model. https://t.co/UWipyVpcLd
— Gamestop-elect MA'AM!!! (@MommyDearest_OG) November 1, 2023
In addition to this, many are complaining that this is not helpful to the people in the state. Salary increases are a good thing, but companies are not willing to take a hit at their profits, thus price increases are necessary for them. It is a precarious situation as if strict laws are implemented on a company’s profits, they may leave the state entirely.
What did you expect? They aren't a charity, but more than that you can only eat so much overhead before you have to pass those costs on to the customers.
That's hardly the worst of it though; these insane minimum wage laws will result in fewer employees making less overall.
— Sarcasm as a Service (@SaaS_Veritas) November 1, 2023
Following that, X users feel that these companies are showing their greed in passing these extra costs to consumers. Despite this, others state that corporations like McDonalds and Chipotle are not charity organisations as they are a business. They feel that this might impact the amount of staff needed for a restaurant location as well.
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