California Minimum Wage Hike Sparks Price Increases at Fast-Food Giants, Former Fosters Freeze Manager Weighs In on Sudden Chain Closure

Former Fosters Freeze assistant general manager Monica Navarro shares her thoughts on the sudden closure of the popular ice cream chain during a segment called ‘The Bottom Line.’ Meanwhile, consumers are feeling the impact of rising prices at fast-food giants like Chipotle and McDonald’s following California’s minimum wage hike. The statewide law implemented in April requires restaurants with over 60 locations nationally to pay their workers $21 an hour by 2023, while other employees receive a base rate of $18 per hour starting this year. As a result, some franchises such as Chick-fil-A and McDonald’s are witnessing price hikes on menu items in California, with the former increasing its spicy chicken sandwich from $6.29 to $7.09 at one Los Angeles location alone – an 13% increase since mid-February. This trend is not unique as other companies like Chipotle and Domino’s have also raised prices in response to the new minimum wage law, which has put a squeeze on customers already grappling with high costs of living amidst California’s overall $15.50 per hour base rate for workers – one of the highest wages amongst U.S states today (almost twice as much compared to the federal mandated salary).