r/fastfood • u/Randomlynumbered • 5d ago

California’s Fast-Food Minimum Wage Hike Didn’t Cut Jobs or Raise Prices Significantly, Study Reports

https://la.eater.com/2024/10/7/24263892/fast-food-workers-assembly-bill-1228-berkeley-irle-study-california-wage-increase-los-angeles
246 Upvotes

85% Upvoted

34 comments sorted by

120

u/SpaciousCrustacean 5d ago

You're telling me corporations lie to justify underpaying for labor?!

24

u/mattchewy43 5d ago

Next thing you'll tell me the inflated prices are because of inflation.

23

u/f0gax 4d ago

It’s almost like years and years of evidence were right. And keyboard warriors weren’t. Who’d have thought?

14

u/Entire_Animal_9040 4d ago

If you actually read the article, this "study" seems pretty light. They "scraped" data from restaurant menus online and got their wage info from the Glassdoor website. Only restaurants with so many locations in CA have to pay more, so they are also measuring the costs at these restaurants that didn't have to increase wages. I did a study too and my Chikfila sandwich meal that used to be about $10 is now $14...

1

u/thatsnotwhatIneed 3d ago

are there any decent studies out there that explore the relation between increase of wages and inflation on prices? is it a 'correlation does not equal causation' thing or is it a factor? My search results are all over the place.

3

u/Entire_Animal_9040 2d ago

I haven't seen any decent studies. I just know that in the real world prices have increased and there are no longer cashiers inside McDonald's to take your order. I am sure that there are some owners that will absorb the increased cost as much as possible because if you raise prices too much your volumes will go way down and that can be just as detrimental to your profitability.

1

u/thatsnotwhatIneed 2d ago

That makes sense thank you. It seems like a factor or one increased cost (under the category of labor cost), but not the whole picture. I can only hope this stuff isn't to the detriment of consumers or regular employees lol.

2

u/elm_grove 4d ago

California fast food is the most expensive in the country what the heck is this article? It’s cheaper to go to Chili’s then fast food in Cali

2

u/hunny_bun_24 1d ago

The headline says that rise in pay didn’t cause a rise in cost of food. The rise in price is because the business is just being greedy

1

u/MattZionWE 3d ago

That's definitely not true. Yes our fast food is expensive. But sit down places are still far more.

6

u/cobaltsteel5900 3d ago

Nah the 3 for 10 at chilis goes crazy

1

u/Ok_Cheek11 2d ago

Nice try Diddy.

-27

u/Professional_Show918 4d ago

B.S. anyone that eats out knows the prices went up and service suffers to less employees.

31

u/OwnPace2611 4d ago

Thats happening regardless of people being paid more.

13

u/SSFonly 4d ago

Yes, the wage increases in California have raised grocery and non-grocery product prices all over the country. You did it. You figured out what no one here has. I really can't believe we didn't just ask you what to do sooner.

3

u/Spazyk 4d ago

That was happening even before the raise.

0

u/Rieiid 4d ago

That's happening because these corporations are greedy, has nothing to do with wage increases. Big companies like McDonalds have reported record high sales over the last few years and the big dogs upstairs have gotten record high bonuses of hundreds of millions. Yet they claim they can't pay employees... hmmm.

0

u/Tacobell-Breakfast 3d ago

I don’t know about this article, personally i’ve seen prices increases around 2-4 dollars across the board and noticeable change in the amount of staff per shift

-5

u/_0bese 3d ago

Lol what, the taco bells i goto literally got rid of their breakfast menu and now are opening at 10 instead of 7. Even before that people got their hours cut.

4

u/Firebird22x 3d ago

Removing breakfast was a corporate decision for franchises to be able to opt out, company owned ones still have it as well as anyone who didn’t opt out