On April 1, “fast” will come at a higher price.

A new law in California will raise the minimum wage for fast food workers to $20 per hour and employers say having to pay their workers more will trickle down to the customer.

Food chains like Mcdonald’s, Chipotle Mexican Grill and Jack in the Box plan to raise menu prices to compensate for the required wage increase. Other food business owners said they’ll have to do the same to keep up.

“Even the tater tots, everything, the price is going to increase on that,” said Brady Farmer, Chef Bradley Cook’s Catering Owner.

As a small business owner, he’s not required to increase his minimum wage but said he wants to do right by his people and he doesn’t want them to leave. He also said covering that extra ground will add up.

“Imagine the guy who has to go out and do that ten-hour job of all your shopping, organizing, driving around,” he said. “You get into an extra $20, $40 or $50, $100, or $200 dollars a day.”

Raising pay will also come with job cuts.

“Our cost of living is rising too fast and we just can’t catch up,” said Kim Phan, Crab Hut Co-Owner.

Categories: Economic History

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