EGG‑NEWS.com

Following mandated wage increases in California, national QSR chains and casual dining restaurants have predictably raised menu prices, ostensibly to cover increased wage cost.  In accordance with the FAST Act, the minimum wage for fast food chains was $20 per hour effective April 1^st. 

Studies have shown that menu prices started to rise in October 2023 disproportionately with the rest of the U.S.  During March 2024, some fast food and fast casual restaurants increased menu prices by 16.5 percent. The average total increase in menu prices in California was 6.8 percent compared to the national average of 6.7 percent.  Increases are regional according to market research company Datassential with higher prices in counties known to have high costs of living.  Although the $20 per hour minimum is higher than the average state minimum wage, a shortage of workers resulted in increases in wage rates independently of the FAST Act.  Menu increases are inevitable given that labor represents approximately one third of the cost of meals served.