Fast Food Workers Make $20/Hour in CA; What State Is Next

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On April 1, 2024, the minimum wage for fast food workers in California increased to $20/hour. Many fast food business owners will feel the cost. According to Business Insider, one business owner changed his menu price to reflect the $20/hour wage increase.

Happy Meals are not $20 at California McDonald's restaurants, but some McDonald's restaurants have increased their menu prices in anticipation of the April 1st change. One McDonald's franchise owner said, "Franchisees are not large, global corporations."

The middle class will again feel the increase. Business owners will pass the cost on to consumers to run profitable businesses.

Here is the price for a sandwich at a McDonald's in Los Angeles, CA.

Double Quarter Pounder with Cheese Deluxe: $8.49

Here are some of the California franchises that will have to abide by the new $20/hour law:

• McDonald's
• Papa John's
• Pizza Hut
• Wingstop
• Chipotle Mexican Grill

Some restaurants have laid off delivery drivers in anticipation of the April 1, 2024, minimum wage change.

Does anyone remember when a Big Meal was under $5.00?

Here is an excerpt from Kiplinger Personal Finance:

"With the new minimum wage, if, for example, someone is working 20 hours per week, they would make $400 per week, pre-tax, or $20,800 for a full 52 weeks. Working a full, consistent 40 hours per week would mean making, pre-tax, under $45,000 a year."

In theory, a fast-food worker could make $45,000 a year. However, the owners of fast-food restaurants will likely reduce the number of workers' work hours to ensure the company makes a profit.

Fast food workers could decrease their hours from 20 to 10 hours a week to keep the employees at the same yearly rate as before the mandatory $20 per hour increase.

Because of fewer workers on each shift, more self-order and pay machines will become the norm. Instead of going to the counter to order, customers will have to go to the order machine, wait for a ticket number, and wait until someone calls their number to pick up their order.

It's happening at many McDonald's restaurants. The owners place order machines as you enter the restaurant, with only one person at the counter taking orders. It encourages customers visiting the restaurant to use the order-pay machine to place orders.

Final Thoughts

Increasing a fast-food worker's salary to $45,000 a year sounds nice, but many owners will reduce worker hours to keep their profit margin healthy. Menu prices will increase, and the company's hours of operation might decrease.

Some fast-food workers may benefit from the wage increase; most will see their work hours reduced.

Will other states follow California?