Prices Spike At In-N-Out, Burger King And More With $20 Minimum Wage

CALIFORNIA — Fast food restaurants in California have started raising prices after the industry’s new $20 miniumum wage went into effect last week in the state, according to the New York Post.

The newspaper reported menus in the Los Angeles area showed prices spike at Burger King, with a Texas Double Whopper meal jumping from $15.09 in late March to $16.89 in early April and a Big Fish meal rising from $7.49 to $11.49. Most other menu items at the restaurant increased at least 25 cents, according to the Post.

At In-N-Out Burger, the hikes weren’t as drastic, with burgers rising around 25 cents and sodas going up a nickel, the newspaper reported.

Menus at Wendy’s, Chick-fil-A and McDonald’s hadn’t changed, according to the Post.

Scott Rodrick, who started his career in the Bay Area and owns 18 McDonald's locations, told CNN he raised his prices roughly 5-7 percent in recent months to prepare for wage growth. Michaela Mendelsohn owns six El Pollo Loco restaurants and has increased menu prices by about 3-4 percent since February, according to CNN.

Several major chains including Starbucks, Jack in the Box, Shake Shack and Chipotle also have announced plans to pass the increased labor costs on to customers, but diners may not have much of an appetite left for more price hikes.

The $4 minimum wage raise applies to larger chains with at least 60 locations and comes thanks to Assembly Bill 1228 signed by Gov. Gavin Newsom last year. The statewide minimum wage will remain $16.

According to the U.S. Bureau of Labor Statistics, about 540,000 people work in fast food in the Golden State, and a majority of them earned less than the $20 minimum wage that kicked in last week. On average, fast food workers in California earned $16.60, or about $34,000 per year, according to the U.S. Bureau of Labor Statistics. That's well below the state's $39,900 California Poverty Measure for a family of four. The new minimum wage will raise full-time fast food workers' annual salaries to at least $41,600.