Welsh Sports Insider: Minimum wage increase triggers price hikes at California chain locations

Several fast-food chains in California have recently increased prices on popular menu items such as burgers and fries. This price hike comes after a new statewide legislation enforcing a $20 minimum wage for restaurants with at least 60 locations went into effect.

The legislation, known as AB 1228, was signed into law by Governor Gavin Newsom in September. In addition to raising the minimum wage, the law also establishes a “Fast Food Council” to approve further pay increases and set working condition standards for fast-food workers in the state.

One chain that has implemented price increases is Burger King, which saw prices for items like the Texas Double Whopper meal rise by nearly 12%. Other items on their menu saw price hikes ranging from 25 cents to a dollar. On the other hand, chains like Chick-fil-A, Wendy’s, and McDonald’s have not raised prices despite the minimum wage increase.

According to recent data, the median fast-food worker in the US earned $13.43 an hour in 2022, while in California the average wage was $16.60 an hour. This new minimum wage equates to an annual salary of $41,600 for fast-food workers in the state.

Despite the price increases, several fast-food chains have not responded to requests for comment on the reasons behind the price hikes. It remains to be seen how these increases will impact consumers and the fast-food industry in California moving forward. Stay tuned to Insider Wales Sport for more updates on this developing story.

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