Since April 1, when California’s minimum wage for fast food workers increased from $16 to $20 an hour, customers have seen prices climb—in some cases substantially.
A survey conducted by the Employment Policies Institute in June and July examined how raising the minimum wage has impacted 182 restaurant operators in the Golden State. It was conducted online and included limited-service restaurant operators and partner associations.
The EPI is a non-profit think tank run by a restaurant industry lobbyist who has fought against minimum wage increases.
The survey found 67% of restaurant operators said the wage increase would cost their business at least $100,000 per location. About one in four said it would cost more than $200,000.
The vast majority of restaurant owners, 98%, said they had already raised menu prices. About 89% said they had reduced work hours for employees, 73% said they had limited overtime or pick-up opportunities and 70% had reduced staff or consolidated positions.