Fast Food Workers Get a Big Raise: What it Means for Prices and Consumers

TLDRStarting today, fast food workers in California will be making $20 an hour, which may lead to higher prices for customers. This increase is the result of a new law, AB 1228, which applies to all fast food restaurants in California with more than 60 locations. While advocates argue that workers deserve higher wages, some franchise owners believe it will hurt their businesses and result in reduced staffing. Chains like Starbucks, McDonald's, KFC, Subway, and Pizza Hut have already announced plans to increase menu prices.

Key insights

💰Fast food workers in California will now make $20 an hour, thanks to a new law - AB 1228 - that applies to all fast food restaurants with more than 60 locations.

📈This wage increase may result in higher prices for consumers, as chains like Starbucks, McDonald's, KFC, Subway, and Pizza Hut plan to increase their menu prices.

👨‍👩‍👧‍👦Advocates argue that most fast food employees are adults with families to support, and many live below the poverty line. The wage increase aims to provide them with a living wage.

🏪Franchise owners are concerned about the impact of higher labor costs and may reduce staffing to save money. Some are already implementing automation, such as automated kiosks, to cut down on employees.

🔄The wage increase for fast food workers is part of a growing trend towards higher minimum wages across various industries and states.

Q&A

Which fast food workers will be affected by the wage increase?

—The wage increase applies to fast food workers in California employed by restaurants with more than 60 locations.

Why are some franchise owners concerned about the wage increase?

—Franchise owners worry that higher labor costs will hurt their businesses and may result in reduced staffing. Some are already implementing automation to cut down on employees.

Will consumers have to pay more for fast food due to the wage increase?

—Yes, chain restaurants like Starbucks, McDonald's, KFC, Subway, and Pizza Hut have announced plans to increase menu prices as a result of the wage increase.

Why is the wage increase important?

—Advocates argue that most fast food workers are adults with families to support and many live below the poverty line. The wage increase aims to provide them with a living wage.

Is this wage increase unique to fast food workers?

—No, there is a growing trend towards higher minimum wages across various industries and states.

Timestamped Summary

00:06Fast food workers in California will now make $20 an hour.

00:10The wage increase may result in higher prices for consumers.

00:18Franchise owners are concerned about the impact of higher labor costs.

00:35The wage increase applies to fast food workers in California employed by restaurants with more than 60 locations.

01:14Chain restaurants like Starbucks, McDonald's, KFC, Subway, and Pizza Hut have announced plans to increase menu prices.

Browse more