Fast Food Price Hike in California: A Fallout of Political Policies

The Fast Food Wage Hike is here – and many fast food businesses will be saying goodbye.

Californians brace for a significant spike in fast-food prices, surging by at least 25%. Governor Newsom and his allies champion a law mandating a minimum wage of $20 per hour for fast-food workers, a considerable leap from the current $16 hourly rate which will cause closures and layoffs across the state as well as higher prices for those that think they may weather the storm.

This change poses a daunting challenge for businesses tasked with balancing profitability. Faced with the dilemma of either absorbing the wage hike or passing on the cost to consumers, fast-food establishments find themselves at a crossroads.

Gone are the days when fast-food jobs served as stepping stones for young individuals, providing them with an entry into the workforce and a chance to earn some extra cash during their high school years. However, with Newsom’s intervention, these opportunities are likely to dwindle, as the inflated starting wage at fast-food chains overshadows those in other sectors, skewing applicant preferences.

As prices surge, consumers bear the brunt of escalating inflation, compounded by President Biden’s economic policies. Proposition 1, recently passed by California voters, imposes additional financial burdens, translating to a minimum of $253 per person annually for the next three decades, all in the name of aiding the homeless.

While some may perceive small-scale fast-food business owners as potential beneficiaries, as the law primarily targets fast-food chains, the reality may prove otherwise. Unlike their corporate counterparts, small businesses lack the leverage to mitigate rising costs through economies of scale.

For consumers, the repercussions are palpable. An estimated 25% hike in fast-food prices translates to substantial increases in everyday expenses. A simple comparison from 2023 to 2024 reveals alarming projections, with prices such as the Big Mac expected to surge from $5.89 to $7.36 or higher. Consequently, even a quick family lunch outing could set one back by a minimum of $60, rendering fast and affordable dining a thing of the past.

Moreover, as costs soar, the middle class finds itself increasingly squeezed out of such indulgences, while the burden of supporting the state’s social welfare programs falls disproportionately on their shoulders.

Looking ahead, a grim forecast looms over the fast-food industry. The implementation of kiosks to replace human workers, a trend already witnessed in establishments like McDonald’s, foreshadows mass layoffs and rising unemployment. Concurrently, real estate markets face the brunt of shuttered fast-food locations, contributing to plummeting property values.

In this narrative of economic upheaval, Governor Newsom’s policies and President Biden’s directives stand accused of catalyzing a cascade of adverse effects. The unchecked national debt, escalating border crisis, and burgeoning inflation epitomize a nation teetering on the brink of economic collapse.

For conscientious citizens, the path forward entails austerity measures, from curtailing vacations to reducing consumption and relocating to regions with a lower cost of living. As the nation grapples with its economic woes, the urgency of pragmatic leadership and decisive action cannot be overstated. Failure to address these systemic issues threatens to plunge the nation into a dire predicament of unprecedented proportions.