Research across 70 fast-food chains found prices at Chipotle, Chick-fil-A, Domino’s, McDonald’s, Burger King, Pizza Hut, Jack in the Box, and others have been rising since September
Not just real estate but even fast food is expensive in California. In September, the state decided to increase the minimum hourly wage of workers at burger and burrito joints to $20 an hour in April. In the past seven months, restaurants have increased prices at a faster pace compared to other states.
According to market research firm Datassential, fast-food giants have increased menu prices by 10% in the state after analyzing thousands of restaurants across 70 chains, including Chipotle, Chick-fil-A, Domino’s, McDonald’s, Burger King, Pizza Hut and Jack in the Box.
A Chick-fil-A meal in Hollywood, California, which used to cost $16, now costs $20. Chipotle acknowledged that menu prices at its 500 California branches rose 6% to 7% during the first week of April compared to last year.
Several consumers are shifting to eating at smaller fast-food joints or independent eateries since the California wage law doesn’t affect restaurants with less than 60 locations.
Nationwide, consumers are pulling back on restaurant visits due to higher menu prices, driven by inflation, reports the Wall Street Journal.