The fast food chains seem to have a bifurcated response. Some, like McDonalds, seem to have cut crew, while retaining relatively low prices, so service is generally quite poor now. Others, such as Chick-fil-A, raised their prices, and a plain chicken sandwich at my local franchise is now about $7.<p>Edit: In-N-Out Burger is the only one I can think of with low prices and good staffing. It is also privately owned
Hmm I saw a different analysis recently indicating that there was a large reduction in fast food jobs in California after the raise to $20/hr. Which one is right?
I wouldn't call it a "small cost." Most fast food meals are at least $15 now. McDonald's just opened a new location here — no dine-in or counter service at all. It's partly because of crime, but also because they don’t need to hire as many people to maintain a dining area. On the bright side, I guess I’m eating out a lot less now.
This article is a complete fabrication. Jobs have been lost. Businesses have seen a reduction in sales due to having to raise prices. People don't tip at all now or tip very little. Full time jobs are shifted to be part time. Etc.<p>As is always the case with these policies, the people who were promised better outcomes are the ones who suffer. Everything is more expensive. On top of that, CA has a fetish with taxation, which means your $20 per hour likely has the buying power you had when you were earning $10, if not less. We pay nearly $5 per gallon for gasoline when, in other parts of the nation the prices are around $2.50. It's all taxes and over-regulation. Insurance (car and home) is crazy expensive. Everything is expensive.<p>I am not sure how far we are from what I've been calling a "Javier Milei" moment in CA. The moment when the population finally suffered enough to understand reality and put people in office who will actually do what they are supposed to do.<p>New one: They are pushing for a mileage tax on vehicles. The excuse is that revenues have come down due to electrics. This is a lie. Only about 5% of the vehicles in CA are EV's. Furthermore, the road maintenance taxes we pay on fuel have AUTOMATIC annual increases built in. And yet, I have been to third world countries who's road are better maintained than in CA. It's truly embarrassing and criminal. The money is being diverted to things other than road maintenance.<p>In short, this article is completely disconnected to reality on the ground.
Yeah, no. My restaurant owner friend said during <he who shall not be named> crazy inflation when complaining about skyrocketing food costs: "theres only so much money people are willing to spend for a salad".<p>Also why is axios' article format so demeaning? The info is presented like it is written for 3rd graders.
Here is a better article with competing studies...<p><a href="https://calmatters.org/commentary/2025/02/fast-food-minimum-wage-studies/" rel="nofollow">https://calmatters.org/commentary/2025/02/fast-food-minimum-...</a><p>>On Tuesday, the industry released its own impact study, conducted by the Berkeley Research Group, a private consulting firm. It found that wage increases have reduced fast food employment, shortened the hours worked, compelled fast food franchises to use more automation and resulted in markedly higher consumer prices.
2 things can be true<p>1) Investors might earn too much return on their investment and wage inequality is high.<p>2) This study ignores downstream effects that result from the lower returns for ongoing/new investment. Since they’re now paying more for labor and selling less, new investment and upkeep has a lower return. Less store upgrades less new restaurants less expansion and so on. In the short term though, of course wage growth (inflation) feels good.