Price Hikes, Automation: More SoCal Fast-Food Chains Respond to Forced Wage Hike

More restaurant operators in California are explaining how they will try to mitigate the cost of paying hourly workers more money when a state law takes effect next Monday hiking fast food workers’ wages from $16 to $20 an hour.

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Executives at McDonald’s and Chipotle Mexican Grill have already indicated menu price hikes are coming. 

Earlier this month, California-based El Pollo Loco told investors it would begin automating some of its salsa-making and, according to the Wall Street Journal, Jack in the Box is testing fryer robots and automated drink dispensers to rely on fewer employees.

Ed Morrissey

Imposed wage hikes are always inflationary and always disincentivize employment. Seattle learned that the hard way, and California refused to learn the lesson. 

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