- A new study shows that California’s minimum wage increase for fast-food workers led to job cuts, higher menu prices and increased automation. In April 2023, California raised the minimum wage for fast-food workers from $16.50 to $20 an hour.
- Specifically, between June 2023 and June 2024, 10,700 fast-food jobs were lost, and menu prices rose by 14.5%. Meanwhile, nearly 89% of restaurant operators reduced employee hours and replaced labor with technology, as 35% cut employee benefits.
- The study concluded that Californians are facing fewer job opportunities and higher food costs due to the wage hike.
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A new study revealed that California’s minimum wage increase for fast-food workers resulted in job losses, higher menu prices and greater automation in the industry. In April 2023, California raised the minimum wage for fast-food workers from $16.50 to $20 an hour.
“We have the opportunity to reward [the contribution of fast-food workers], reward that sacrifice, and stabilize an industry in turn,” Gov. Gavin Newsom said when signing the bill into law in September 2023. “What a remarkable moment.”
What changed at fast-food restaurants?
Now, less than a year since the pay hike took effect, a study conducted by the Berkeley Research Group shows that between June 2023 and June 2024, 10,700 fast-food jobs were lost in California, citing data from the Bureau of Labor Statistics.
Fast food menu prices also increased by 14.5% between September 2023 and October 2024—nearly double the national average…