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Fast Food Chains Warn Consumers , That Worker Pay Increases
Will Impact Prices.
'Newsweek' reports that franchises have
warned an increase of the minimum wage
for fast food workers in California could also
force menu prices to climb.
As of April 1, fast food restaurants in California
will have to pay employees at least $20 an hour, an
increase of four dollars from the current $16 an hour. .
Business owners have warned that the new law,
signed in by Democratic governor Gavin Newsom,
will have an impact on margins and consumer costs. .
At the end of October, McDonald's CEO Chris Kempczinski
said that the impact of the minimum wage rise would
be partially "worked through with higher pricing.".
At the end of October, McDonald's CEO Chris Kempczinski
said that the impact of the minimum wage rise would
be partially "worked through with higher pricing.".
According to McDonald's numbers, the price of
the signature Big Mac burger is currently $5.89
in California, the 10th highest in the United States.
The latest data compiled by 'The Economist' shows that
the average price of a Big Mac nationwide is currently
$5.69, which is up from $5.36 at the same time in 2023. .
Last year, McDonald's , reported net profits of , almost $8.5 billion.
According to the company's latest financial reports,
sales increased 8.7% in the U.S. in 2023, which the
company attributed to "strategic menu price increases.".
According to the company's latest financial reports,
sales increased 8.7% in the U.S. in 2023, which the
company attributed to "strategic menu price increases.".
Meanwhile, Jack Hartnung, the CFO of fast food
chain Chipotle, told investors that the wage
increase would impact consumer prices with a
"mid-to-high single digit" percentage increase.
Meanwhile, Jack Hartnung, the CFO of fast food
chain Chipotle, told investors that the wage
increase would impact consumer prices with a
"mid-to-high single digit" percentage increase.
In December, Pizza Hut cited the wage
increase as the reason behind laying off
the company's in-house delivery drivers. .
In December, Pizza Hut cited the wage
increase as the reason behind laying off
the company's in-house delivery drivers.
Credit: Wibbitz Top Stories Duration: 01:31Published
California Voters Pass Proposition 1 , to Address Homelessness Crisis.
In a state that accounts for close to a third
of all homeless people in the United States.
California counties will now be required to
spend money "on housing and drug treatment programs" to fight homelessness, NPR reports. .
Gov. Gavin Newsom raised over
$13 million to promote the measure.
Proposition 1 represents California's first mental health system update in 20 years, NPR reports. .
This is the biggest change in
decades in how California tackles
homelessness, and a victory for
doing things radically different, Gov. Gavin Newsom, via statement.
Now, counties and local officials must
match the ambition of California voters. , Gov. Gavin Newsom, via statement.
This historic reform will only
succeed if we all kick into action
immediately – state government
and local leaders, together, Gov. Gavin Newsom, via statement.
Revenue from a tax on millionaires, enacted in 2004, brings in about $2 billion to $3 billion a year toward California's mental health budget, NPR reports. .
Counties will now be required to spend two-thirds
of that money to tackle homelessness. .
The state will also be allowed to borrow
$6.3 billion to create an additional 6,800 beds for mental health and addiction treatment.
That money can also be used to
construct 4,350 housing units. Half of
those housing units will be for veterans
Credit: Wibbitz Top Stories Duration: 01:31Published