After a much-disputed minimum wage law passed in California, fast food companies and their customers are feeling the heat.  Businesses have warned lawmakers that hiked prices would come directly from this legislation…

And now we’re seeing the effects in real-time. 

How California’s New Law Affects The Fast Food Industry

A new law requires restaurants with over 60 locations to increase their employees’ minimum hourly wage to $20…

Since the California law went into effect, fast food prices in the state rose 10%, way faster than the national average. 

Many restaurants that have already been struggling are now facing even more of an uphill battle. Customers who usually eat at Chipotle, McDonald’s, and Pizza Hut have been shocked to see the new prices for their meals. 

One customer’s regular meal at Chick-fil-a jumped from $16 to $20. The restaurant’s pricing jumped 10.3% since the California fast food law went into effect. 

These brands are concerned about getting customers to accommodate to the new prices.

Their only problem?

CUSTOMERS ARE CHOOSING TO AVOID EXPENSIVE FAST FOOD AND DINE OUT ONCE IN A WHILE INSTEAD.

Californians are choosing to visit smaller independent restaurants…

To avoid the price hikes altogether. 

With most of the country opting to do their grocery shopping instead of eating out due to rampant inflation…

Who knows whether these new laws will actually help the businesses…

Or hinder them. 

Be Great, 

GCTV Staff

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