Burrito, Big Mac prices in California to go up as pay rises: 'Someone has to pay,' FAT Brands founder says
Fat Brands chairman and founder Andy Wiederhorn details the economic impact of California raising the minimum wage to $20 an hour.
Consumers in California should expect to pay big bucks for a Big Mac once the state's minimum wage increase goes into effect this spring.
As businesses consider passing costs on to consumers, Fat Brands chairman Andy Wiederhorn stated «someone's got to pay» for the jump in wages.
«The consumers who are voters must have known what they were getting into by promoting this legislation to raise the minimum wage from $15 to $20 and on its way to $25,» he said Tuesday on «The Big Money Show.»
«Everyone wants their employees to make more money, but it just costs. And someone's got to pay for it. And the restaurant operators don't have the margin for that. So prices are going to go up.»
INFLATION CAUSES RESTAURANT OWNER TO CHARGE NEARLY $16 FOR A SANDWICH, CALLS JUMP IN PRICES ‘INCREDIBLE’
California passed legislation last fall that will require a $20 per hour minimum wage at all restaurants with at least 60 locations nationwide — though the law includes an exception for restaurants that make and sell their own bread.
The increase is set to take effect on April 1.
Fast food products in California could see steep price hikes after the state introduces a $20 minimum wage. (REUTERS/Joshua Roberts / Reuters Photos)
Several major fast-food franchises, including McDonald’s and Chipotle, have already signaled that prices will have to rise in response to the increased labor costs.
McDonald's has recently received heavy criticism over its Big Mac combo, which is priced at nearly $18, among other menu hikes, and has promised to focus on affordability, the New York Post reported.
While there are calls
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