Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Fast-food prices set to rise at McDonald's, Chipotle and others as California minimum wage hike looms By: FOX Business February 04, 2024 at 17:12 PM EST Fast-food workers in California will make $20 an hour when the industry's new minimum wage law takes effect in April, with some fast-food restaurants preparing to raise prices. Fast-food prices in California are set to rise this spring with businesses responding to the state’s $20 per hour minimum wage law for fast-food workers that will take effect on April 1, 2024.The law was signed by California Governor Gavin Newsom last fall and 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. 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."Everyone is going to have to pay more," Jack Hartung, chief financial officer of Chipotle, said in the Wall Street Journal. The California-based company expects to raise prices by about 5% to 9% more at its restaurants in the Golden State to cover the costs.CALIFORNIA CRIME WAVE TAKES ITS TOLL ON IN-N-OUT, OTHER COMPANIES AS BUSINESSES START TO ISSUE SAFETY WARNINGSHartung told the Journal in November that he expects Chipotle’s labor costs to rise in the 15% to 20% range, which he said is "significant enough that it puts a dent in our economics." He added at the time that although he didn’t see it having an immediate impact on restaurant opening plans, customers’ response to price hikes will factor into those decisions. Chipotle is expected to report earnings after the bell on Tuesday.LOS ANGELES DESSERT SHOP ANNOUNCES SUDDEN CLOSURE OF LOCATIONS, CITES COST OF BUSINESS IN CALIFORNIAMcDonald’s CEO Chris Kempczinski said on an earnings call in October that prices at the fast-food giant will have to rise even though the company hadn’t determined at the time how large the increases would be."Certainly, there’s going to be some element of that that does need to be worked through with higher pricing," Kempczinski said. "There’s also going to be things that I know the franchisees and our teams there are going to be looking at around productivity. How all of that plays out, there will certainly be a hit in the short term to franchisee cash flow in California; tough to know exactly what that hit will be because of some of the mitigation efforts."McDonald's is scheduled to report earnings before the opening bell on Monday.Jack in the Box said during an earnings call in November that it expects to raise prices by 6% to 8% across the company primarily to address increased wage expenses stemming from the California law. The company will likely provide an update when it releases earnings later this month.CALIFORNIA JOB GROWTH FALLS BY MOST IN THE NATION POST-PANDEMIC: REPORTSome restaurants may turn to increased automation as a way of mitigating the impact of a higher minimum wage in the industry. Josh Kobza, the CEO of Burger King's parent company Restaurant Brands International, told investors during an earnings call in November that the chain plans to speed up its rollout of digital ordering kiosks, which let restaurant workers focus more on preparing food and can improve order accuracy, reducing stressful interactions between employees and customers."My point of view is we need to get this business to 100% digital," Kobza said. "We should have all of the order-taking done through digital ordering channels over time."GET FOX BUSINESS ON THE GO BY CLICKING HERECalifornia’s minimum wage ticked up to $16 an hour in January for all jobs in the state – up from $15.50 an hour which was already the highest in the nation. Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Fast-food prices set to rise at McDonald's, Chipotle and others as California minimum wage hike looms By: FOX Business February 04, 2024 at 17:12 PM EST Fast-food workers in California will make $20 an hour when the industry's new minimum wage law takes effect in April, with some fast-food restaurants preparing to raise prices. Fast-food prices in California are set to rise this spring with businesses responding to the state’s $20 per hour minimum wage law for fast-food workers that will take effect on April 1, 2024.The law was signed by California Governor Gavin Newsom last fall and 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. 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."Everyone is going to have to pay more," Jack Hartung, chief financial officer of Chipotle, said in the Wall Street Journal. The California-based company expects to raise prices by about 5% to 9% more at its restaurants in the Golden State to cover the costs.CALIFORNIA CRIME WAVE TAKES ITS TOLL ON IN-N-OUT, OTHER COMPANIES AS BUSINESSES START TO ISSUE SAFETY WARNINGSHartung told the Journal in November that he expects Chipotle’s labor costs to rise in the 15% to 20% range, which he said is "significant enough that it puts a dent in our economics." He added at the time that although he didn’t see it having an immediate impact on restaurant opening plans, customers’ response to price hikes will factor into those decisions. Chipotle is expected to report earnings after the bell on Tuesday.LOS ANGELES DESSERT SHOP ANNOUNCES SUDDEN CLOSURE OF LOCATIONS, CITES COST OF BUSINESS IN CALIFORNIAMcDonald’s CEO Chris Kempczinski said on an earnings call in October that prices at the fast-food giant will have to rise even though the company hadn’t determined at the time how large the increases would be."Certainly, there’s going to be some element of that that does need to be worked through with higher pricing," Kempczinski said. "There’s also going to be things that I know the franchisees and our teams there are going to be looking at around productivity. How all of that plays out, there will certainly be a hit in the short term to franchisee cash flow in California; tough to know exactly what that hit will be because of some of the mitigation efforts."McDonald's is scheduled to report earnings before the opening bell on Monday.Jack in the Box said during an earnings call in November that it expects to raise prices by 6% to 8% across the company primarily to address increased wage expenses stemming from the California law. The company will likely provide an update when it releases earnings later this month.CALIFORNIA JOB GROWTH FALLS BY MOST IN THE NATION POST-PANDEMIC: REPORTSome restaurants may turn to increased automation as a way of mitigating the impact of a higher minimum wage in the industry. Josh Kobza, the CEO of Burger King's parent company Restaurant Brands International, told investors during an earnings call in November that the chain plans to speed up its rollout of digital ordering kiosks, which let restaurant workers focus more on preparing food and can improve order accuracy, reducing stressful interactions between employees and customers."My point of view is we need to get this business to 100% digital," Kobza said. "We should have all of the order-taking done through digital ordering channels over time."GET FOX BUSINESS ON THE GO BY CLICKING HERECalifornia’s minimum wage ticked up to $16 an hour in January for all jobs in the state – up from $15.50 an hour which was already the highest in the nation.