Since April 1, when California's minimum wage for fast food workers increased from $16 to $20 an hour, customers have seen prices climb—in some cases substantially.
A survey conducted by the Employment Policies Institute in June and July examined how raising the minimum wage has impacted 182 restaurant operators in the Golden State. It was conducted online and included limited-service restaurant operators and partner associations.
The survey found 67% of restaurant operators said the wage increase would cost their business at least $100,000 per location. About one in four said it would cost more than $200,000.
The vast majority of restaurant owners, 98%, said they had already raised menu prices. 89% said they had reduced work hours for employees, 73% said they had limited overtime or pick-up opportunities, and 70% had reduced staff or consolidated positions.
Additionally, 92% of survey respondents expressed concern that raising menu prices will lead to slower "foot traffic."
The m...