Fast food prices in California rose 7% in the six months leading up to the state’s new $20 an hour minimum wage law, with franchisees in the Golden State cutting hours, deferring capital improvements and increasing wages. forced to accelerate improvements. Deployment of self-service kiosks.
California had the highest menu price inflation rate in the nation through April 1, when the minimum wage increased from $16 to $20 an hour. According to a study by analytics firm Datassential.
Fast food menu prices had the second highest price increase in Washington state, rising 6.1% over the same period.
Kentucky was third at 6%. Nationally, fast food prices rose 4.5% in the six months to April 1.
The study found that all 30 area codes in California were in the top 30% for the highest price increases for fast food restaurant menu items.
The 530 area code, which covers most of Northern California, had the highest net menu price inflation among fast food restaurants in the country, at 8.9%.
Of the 288 U.S. area codes, four of the top 10 price increases nationwide were in California.
Riverside County, whose 951 area code includes towns such as Coachella, had the seventh-highest price increase in the nation for fast-food menus, at 7.9%.
Area code 209, which covers the Stockton, California area, came in ninth at 7.9%, and area code 510 in and around Oakland was 10th highest at 7.8%.
Area code 916 (Sacramento) and area code 442 (Southern California) both increased by 7.6%, placing them 13th and 14th, respectively, in the nation.
Full-service restaurants, including sit-down restaurants, including medium-sized chains and upscale restaurants, increased menu prices by 2.4% nationally over the same six-month period, according to DataSessional.
California saw a 3.3% increase in prices, the third highest after Hawaii and Washington.
Earlier this week, a report from Kalinowski Equity Research found that fast food chains including Wendy’s, Chipotle, Starbucks and Taco Bell have increased menu prices by up to 8% in preparation for new minimum wage laws. .
Wendy’s increased its menu prices by about 8%, and Chipotle Mexican Grill increased its prices by about 7.5%, according to the report.
Seattle-based coffee chain Starbucks raised menu prices at its California locations by about 7%, and Taco Bell raised prices by 3%.
