Half the states have decided to raise their minimum wages, meaning the price of fast food staples like McDonald's Big Macs could soar to $15 in those states, according to one economic analyst. .
Brandon Arnold, executive vice president of the fiscally conservative think tank National Taxpayers Alliance, called California's decision to require fast-food workers to be paid at least $20 an hour as a worrying sign.
Arnold told Fox News on Monday that companies “need to either raise prices or start cutting labor costs, or a combination of both.”
“And it's not fair to the employees who are being laid off, and it's not fair to the customers who are suddenly paying $12, $15 for a Big Mac.”
Last July, a McDonald's store in Connecticut was criticized for charging $18 for a Big Mac combo.
The most expensive Big Mac in the U.S. is in Massachusetts, where the burger costs $7.09, according to financial data site Zippia.
The cheapest Big Macs in the country are $4.19 each in North Carolina and Wyoming. The average price of a Big Mac in the United States is $5.17. According to Zippia.
California's $20 hourly minimum wage for fast food workers goes into effect in April. McDonald's and Chipotle both announced they will increase menu prices at their Golden State locations starting this year.
“as [employers] “We may not be able to lay off people right away because labor costs are starting to rise,” Arnold initially told Fox News in a statement. Quoted by Mediaite.
“But when the going gets tough, they're going to have to make changes.”
The Post has reached out to McDonald's for comment.
Pizza Hut announced last week that it would lay off more than 1,200 delivery drivers in California ahead of a new state law.
Arnold predicted “a 10, 12, 15 percent reduction in the number of jobs available” in the fast food industry.
Arnold said fast food workers are “much better off working for $8, $9, $10 an hour than standing on the unemployment line.”
Last January, McDonald's head of U.S. operations warned that California's minimum wage hike for fast food workers would “make it nearly impossible for small businesses to operate.”
“California continues to find ways to raise prices, drive out more businesses and destroy growth through bad policy and bad politics,” said Joe Erlinger, president of McDonald's USA. he wrote in an open letter.
Lawmakers in 25 states and Washington, D.C., have passed legislation to increase the minimum wage. In 22 of those states, the law went into effect on Monday.
Minimum wage increases in parts of Nevada and Oregon will take effect July 1st, and Florida's new minimum wage increases will take effect September 30th.
The minimum wage in New York City, Long Island and Westchester County rose by $1 on Monday, from $15 to $16.
In the rest of New York State, the new minimum wage will increase from $14.20 to $15.
Additional reporting by Shannon Saylor
