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OAN’s James Meyers
10:27 AM – Friday, April 19, 2024

With the massive increase in minimum wage for fast-food workers in California, the Golden State saw their fast-food prices increase at least 7% in a six-month period. 

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In addition to the ongoing influx of worker layoffs, California marked the highest rate of menu price inflation in the country in the period leading up to April 1st, following the minimum wage increase from $16 to 20$ after Governor Gavin Newsom (D-Calif.) approved the bill. 

However, officials argue that the price hikes are not much higher than No.2, the state of Washington (6.1%), and No.3, the state of Kentucky (6%).

Additionally, fast food diners saw 4.5% price hikes over the half-year across the U.S. 

The study found that California’s 30 area codes were in the top 30% of the largest price hikes for menu items in fast food restaurants. Furthermore, out of 288 U.S. area codes, California cities landed four of America’s top 10 cities for price hikes. 

The 530 area code, which covers Northern California, had received the highest net menu price inflation among fast-food restaurants in the entire nation at 8.9%.

According to Datassential, full-service restaurants, which include sit-down restaurants, raised menu prices by 2.4% nationally during the same six-month period. 

In Newsom’s state, California prices increased by 3.3%, which was the third highest behind Hawaii and Washington State. 

According to Kalinowski Equity Research, the fast-food restaurant Wendy’s was the leader of the price hikes at 8%, followed by Chipotle at 7.5%, Starbucks’ food items at 7%, Taco bell at 3%, and Burger King with the lowest percentage at 2%. 

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