Fast-food restaurateurs in California are warning customers to expect price bumps ahead of a new minimum wage for the industry, which will go into effect on Monday.
California Democratic Governor Gavin Newsom signed a bill in September lifting the minimum wage for fast food workers from the state minimum of $16 an hour to an industry-specific rate of $20 an hour. The bill is set to go into effect on April 1.
With the new wage floor just days away, fast-food businesses are preparing to cut jobs and hike prices to offset the increase in costs.
“It’s going to be a pretty significant increase to our labor,” Chipotle chief financial officer Jack Hartung said during an earnings call last year, according to the Los Angeles Times. Hartung said that a significant amount of the cost would be passed on to customers in “a mid-to-high single-digit” percentage price increase.
“We are…
