California minimum wage hike prompts fast food price increases

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  • Опубліковано 14 кві 2024
  • An economist at the University of San Diego estimated the 25% increase in wages could lead to a 5-7.5% increase in prices.

КОМЕНТАРІ • 131

  • @makina323
    @makina323 Місяць тому +38

    Let them raise their prices, even more reason to not eat there :)

    • @AmericanPride1234
      @AmericanPride1234 Місяць тому +1

      Learn some math.
      4-18-24

    • @HiddenAgendas
      @HiddenAgendas Місяць тому

      Yeah, don't eat there. More reason for them to lay off these clowns who demanded $20/hr lmfao idiot.

  • @David-fu4vi
    @David-fu4vi Місяць тому +14

    Say good bye to fast food, it's going to go the way of the auto industry. Government should stay out of businesses, they can't run their own!

  • @RacerX1971
    @RacerX1971 Місяць тому +28

    Later on they will want $25 an hour and say that $20 is not enough😂😂😂

    • @cardboardboxification
      @cardboardboxification Місяць тому +5

      well they need to buy a 1.5 million dollar home and have a s550 in the driveway also

    • @isiahwhite2257
      @isiahwhite2257 Місяць тому +3

      The minimum wage of 20 an hour in this law actually increases by 1 dollar every year to become 25 an hour in the next 5 years.

    • @gotafarmyet4691
      @gotafarmyet4691 Місяць тому +2

      @@isiahwhite2257 No they work in a corporation environment so raises at typically 1-2% not 5%.
      Once again there is almost no actual information from this video. McDonald's made X amount, but was that Gross, Net, after taxes, etc. Also what did the franchise owners make per location and after expenses?

    • @isiahwhite2257
      @isiahwhite2257 Місяць тому

      @@gotafarmyet4691 Well you know what
      You’re right. I swear I read that someone. Nvm lol
      “And from 2025 through 2029, the appointed council will have the authority to raise the hourly minimum wage annually by whichever is lower: 3.5% or the annual change in the consumer price index” says CNBC news.

    • @gotafarmyet4691
      @gotafarmyet4691 Місяць тому

      @@isiahwhite2257 That last line states it all, a government council. This will pretty much kill the food industry in CA as it will be unaffordable in a few years. The pay raises will simple out grow the ability of people to buy the product and sales will decline. Once the margin is thin enough they will close the location, so now only the highly profitable locations will stay in business.

  • @teodorgalit6878
    @teodorgalit6878 Місяць тому +11

    yes like it has not happened already....these corporations doubled their prices even before this came....fair competition, corporations should not be so greedy...i will go and eat whatever i think i can afford so its all fair...if its expensive i will eat something else

  • @codelessunlimited7701
    @codelessunlimited7701 Місяць тому +10

    Can't blame them. Everything goes up. But anyone ranting here against the business franchises and operators are id"ts!
    Blame the st_pid government and the federal reserve bank that keeps printing money and sending the money to support the war in Ukraine and Israel, while taxing the people through high inflation.

  • @conqueringlion420
    @conqueringlion420 Місяць тому +2

    Already deleted my Starbucks,McDonald’s and pizza apps the day of the raises. They forgot one little thing in business, the consumer has the power to say NO!

    • @Sylvershade
      @Sylvershade Місяць тому

      No, they remembered that. Most won't say no however.

  • @bm373
    @bm373 Місяць тому +19

    Innout has been paying $20 for years!! $3.00 for a hamburger!! Screw the greedy ceo's and stockholders!! ✌️🇺🇸

    • @joeyGalileoHotto
      @joeyGalileoHotto Місяць тому +4

      In-N-Out doesn't have a franchise model and franchise owners have to pay a royalty fee as well as a franchise fee. It has little or nothing to do with CEOs and stockholders. Unfortunately though this is purposefully not mentioned anywhere to get views.

    • @Colorado_Native
      @Colorado_Native Місяць тому +2

      They charge $3 for a hamburger? I'm all in on that!

    • @lauriegenie
      @lauriegenie Місяць тому

      Foolish. Obviously you don't understand how it works. Why so envious of another person's success? You want everyone dirt poor?

    • @VulcanLogic
      @VulcanLogic Місяць тому

      @@Colorado_Native The double-double animal style, their most expensive burger, is $5.35.

    • @Sylvershade
      @Sylvershade Місяць тому +1

      They are also raising prices though....

  • @lauriegenie
    @lauriegenie Місяць тому +2

    Did employee productivity suddenly increase 25%? Nope. Artificially hiking the price of labor is idiotic and counterproductive.

  • @VulcanLogic
    @VulcanLogic Місяць тому +4

    Even before the state hike, here in Irvine every single fast food restaurant has had a help wanted sign up for almost 3 years straight, and they were already advertising $18+ per hour.

  • @waynefitkin1104
    @waynefitkin1104 Місяць тому +3

    I remember when a hamburger was 20 cents and a cheeseburger was 25 cents at McDonald's. Anyone at that time who became a McDonald's franchise owner was guaranteed to become a millionaire back in the late 60's early 70's that was a fortune. Everyone could afford the food and the owner made a good profit. Makes you ask who screwed everything up so bad.

  • @wwlee5
    @wwlee5 Місяць тому +6

    On a 10 dollar burger, they should be adjusting 75 cents. If they're adjusting by 1 dollar, their margin will look beautiful. On a typical fast food financial statement, let's say 30% of sales is direct-labor. 25% increase means margin will decline 7.5%. You make it up by charging 75 cents on a 10 dollar burger. If In-and-Out is raising prices by 5%, that means direct-labor is a smaller proportion OR they were profiting by a lot. In the end, the Assemby Bill 1228 should help smaller mom-pop fast-food restaurants profit more as they dont need to pay 20 bucks per hour.

    • @bovnycccoperalover3579
      @bovnycccoperalover3579 Місяць тому

      That's assuming that they don't lose workers and find themselves forced to also pay $20/hour.

  • @brendas.1374
    @brendas.1374 Місяць тому +17

    Blame Newsom for this.

  • @michaelwells7348
    @michaelwells7348 Місяць тому +7

    In 1980 I Made $5 hr.... ( and that’s the Same ) as $20 hr today.... I was in the 9th grade..it wasn’t a killing then... and it’s not a Windfall today .... 44 years later ~ and Wages haven’t budged....

    • @VulcanLogic
      @VulcanLogic Місяць тому

      Yeah I made $7 an hour delivering for Dominos (with tips) while going to college. But the guys down at the plant were making $18 an hour with full benefits for basically pulling a lever and loading a palette.

    • @HiddenAgendas
      @HiddenAgendas Місяць тому +2

      Dude you were in 9th grade. Shit don't matter. Now than you a grown up, you should be making a lot more than minimum wage.
      Everyone SHOULD start at the bottom and work their way up. I was making $9/hr in high school. In my Sophomore year of College I was making $19/hr doing data entry work thorough a temp agency. And 5 years later, I see 50 year old crying about $15/hr and now they crying about $20/hr lmfao.
      Your goal in life shouldn't be the bare minimum. Do better. Apply yourself and earn a living that is way more than minimum wage.

    • @VulcanLogic
      @VulcanLogic Місяць тому

      ​@@HiddenAgendas ""Do better" is great advice for an individual, but it doesn't work for any random set of 100 people, let alone 330,000,000.

  • @sangmoon2464
    @sangmoon2464 Місяць тому +2

    The regular restaurants are raising prices too. The successful sit down restaurants already have the customer volume they want. Fast food restaurants raising prices allows the sit down restaurants to raise prices while maintaining the same volume and making more money without extra effort.

  • @arturovillaluz2053
    @arturovillaluz2053 Місяць тому +2

    Many people forget we have an obesity problem in America, maybe this will help to diminish it.

  • @jameshorn4125
    @jameshorn4125 Місяць тому +13

    This will fail. Raising the minimum wage to $20hr is a terrible idea. Franchise owners compensate by raising prices on menus to pay for employees. The consumer of these businesses will come by less bc they'll start to realize that their every day habit of eating fast food is hitting them in the pocket. The consumer rate will drop. The fat guy who also works at minimum wage $20/hr will order food at these fastfood joints and realize his 1hr of work is gone with just a simple meal - he will have to stop going along with thousands who are in his position. The higer wage earner who used to buy dinner for his whole family (out of convenience) realizes its way cheaper to just buy groceries and have wife or husband cook. After not eating fast food junk, this family along with thouaands upon thousands of other families will continue to not eat fast food and will be happy they made this switch. These fast food businesses will shut down as profits goes down and start going into the negative. All the morons who wanted minimum wage increase will lose their job. They will sit there wondering with their thumbs up their ass wondering what just happened. They'll blame someone but not the right person.

    • @CACar_Nation
      @CACar_Nation Місяць тому

      Trump did it

    • @bovnycccoperalover3579
      @bovnycccoperalover3579 Місяць тому

      Hope so. Fast food is adulterated "food" and very unhealthy.

    • @jameshorn4125
      @jameshorn4125 Місяць тому +1

      @@bovnycccoperalover3579 that's not the point tho. I want people to have a job and NOT file for unemployment and welfare. Tax payers (the ones with jobs) will have to pay for them. Eating "healthy" is an option. But if you have no job then what do you do? Answer: Vote for Republican and/or maybe Democrat to LOWER THE COST OF LIVING YOU LOSERS. Trump 2024. Do it

    • @VulcanLogic
      @VulcanLogic Місяць тому

      ​@@jameshorn4125 I'm not sure how either of them will lower the cost of living. The president of the United States isn't that powerful. The cattle barons are running the show and there's not much the sheriff can do about it.

  • @bovnycccoperalover3579
    @bovnycccoperalover3579 Місяць тому +3

    What a surprise - not!😂😂😂😂 I stopped eating fast food in 2017 plus soda. I lost weight and was surprised by the amount and felt much healthier. I hope this encourages more people to cook at home.

  • @pat.l.h.2730
    @pat.l.h.2730 Місяць тому +4

    I don eat fast food its very unhealthy.

    • @stormysyndrome7043
      @stormysyndrome7043 Місяць тому

      It’s not just the fast food places. Fast food joints raising their prices trickles up to sit down restaurants. No way will a sit down restaurant sit there and let a greasy spoon fast food raise their prices to a comparable amount. Thats like McDonalds trying to say their quarter pounder meal is worth the same as a steak from Outback.
      Got a menu with prices from cali for 5 guys just 20 minutes ago. Large fries $10. Regular old nasty burger…$12. These are not meal deals, they’re all individually priced items. The sit down restaurants respond by increasing their costs.

  • @user-tw3kr9if1f
    @user-tw3kr9if1f Місяць тому +2

    This is certainly Bad News for customers, They obviously will get higher prices most likely smaller portions , lower quality and probably worse service. Mechanization maybe the only thing that can save the fast food large chains in California.

  • @mrleverage2006
    @mrleverage2006 Місяць тому +2

    I cannot believe an economist thinks this will help the lower class; they made sure he got in that at the last part of this segment.....last liar out is who you remember.

  • @esgue008
    @esgue008 Місяць тому +28

    Good, no one should be eating fast food anyway.

    • @Colorado_Native
      @Colorado_Native Місяць тому +3

      What if I eat it reeeaaallly slow to get my money's worth? Oh, and who are you to tell me I shouldn't eat my Baconator? You know, there are some healthy choices. Oh, but you never go there. My apologies.

    • @esgue008
      @esgue008 Місяць тому +1

      @@Colorado_Native support your local mom and pop restaurants instead.

    • @Colorado_Native
      @Colorado_Native Місяць тому +2

      @@esgue008 I appreciate your concern. However it is a free country. I go to the local Wendy's because it is across the street from where I work for lunch. It's fast, local and I like what they have to offer. You do realize 95% of Wendy's are privately owned, right? Plus I own many Wendy's shares, WEN is their ticker. Also, 90% of McDonalds are priately owned. I like their food. Their ticker is MCD and I own some of them as well. The closest Burger King is two miles away. Most of them are privately owned. Their ticker is QSR for Restaurant Brands International, they also own Subway. And yes, I own some QSR as well. I am also in pretty good shape. I own my own commercial gym. But, thanks for the reply.

    • @esgue008
      @esgue008 Місяць тому +1

      ​@@Colorado_Native I would like to believe everything you said about yourself is true, but I can't. bye

    • @Colorado_Native
      @Colorado_Native Місяць тому +1

      @@esgue008 I just don't care whether you believe or not. I don't get offended that easily. You stay poor, I invest money every week at Robinhood. The time value of money is probably lost on you. Thanks for the reply.

  • @Piggybacking101
    @Piggybacking101 Місяць тому

    It is becoming more and more difficult for us all to succeed in California because of the problem with shady staffing companies.

  • @jaminova_1969
    @jaminova_1969 Місяць тому +1

    Got it! Bad timing for a price increase, given the state of the economy and all.

  • @GeraldoA-jc5nl
    @GeraldoA-jc5nl Місяць тому +1

    Do the companies bake bread onsite?

  • @WuWuHana
    @WuWuHana Місяць тому +1

    No more dollar menu's
    I can't afford the fast food

  • @brianschooley3833
    @brianschooley3833 Місяць тому +7

    I'll just eat at 🏡 home in Mexico..much better, and cheaper

    • @spderman123
      @spderman123 Місяць тому +2

      and fresher. i noticed that the food in usa is so bad for you like i have to poop everytime not in a good way

    • @manonamission2000
      @manonamission2000 Місяць тому +1

      @@spderman123that's called E. coli

    • @spderman123
      @spderman123 Місяць тому

      @@manonamission2000 yeah might be something else now lol wouldnt surprise me

    • @Sinsled1978
      @Sinsled1978 Місяць тому

      Good and give that advice to all your tio's and tia's and Mijo's and Mija's , maybe that will keep them from swimming here.

    • @SushmaVivek-xq4nv
      @SushmaVivek-xq4nv Місяць тому

      ​@@spderman123and tastier

  • @re8746
    @re8746 Місяць тому

    Ate at a Taco Bueno outside of San Francisco. For two tacos, a beef burrito and a drink cost me $17. Never again.

  • @deshaimoney8661
    @deshaimoney8661 Місяць тому

    It’s a never ending cycle 🤦🏿 prices will never be stable again

  • @4-Ever194
    @4-Ever194 Місяць тому +3

    Good. $45 for hamburger meals. Restaurants do! Fast food are Restaurants!😅

  • @eriks8382
    @eriks8382 Місяць тому +1

    Fast- has anyone been through the in n out drive thru?
    Easy-how easy can it be when they repeat the order to you and they still fuck it up?
    Cheap-what planet are you huffing paint on

    • @corgising5606
      @corgising5606 Місяць тому

      In N Out never screwed up my order.

  • @wendyscantlebury-momoh
    @wendyscantlebury-momoh Місяць тому

    All started during covid. Landlords and businesses got greedy and raised prices on everything because of supply and demand. In order for someone to pay their rent and bills or having to choose between food and bills, they must be paid a livable wage.

  • @DPepper779
    @DPepper779 Місяць тому +3

    Big surprise

  • @markdc1145
    @markdc1145 Місяць тому

    Glad to see prices going up which will lead to the demise of more fast food restaurants and hopefully entire companies.

  • @tnguy9696
    @tnguy9696 Місяць тому +2

    this is all about automation its coming very soon. this is step one

    • @lauriegenie
      @lauriegenie Місяць тому

      This is about intentionally destroying the economy.

  • @Sylvershade
    @Sylvershade Місяць тому

    Love the deceptive wording at the end giving the worldwide profit of McDonald's Corp. Hiw much did the CA Franchisees make for a net amount though.

  • @ronaldwilliams4053
    @ronaldwilliams4053 Місяць тому

    When will they realize all they do when they raise wages or taxes the extra cost just go to the worker

  • @Mlogan11
    @Mlogan11 Місяць тому +8

    Company can make record profits and give executives stellar pay raises, and no one blinks and the media ignores it. But any talk of raising the minimum wage gets all the news and negative attention.

    • @eastbaykidd8574
      @eastbaykidd8574 Місяць тому

      Do yourself a favor, Google one of the P&L pages for one of the major fast food corporations and tell is what their profit margin is in terms of percent. Then calculate the total cost for all line workers based on raising their pay an average of $4/hour, tell us what number it comes to, then tell us where those funds are coming from. Go ahead, I will take a look at your work when you're done.

    • @deltaditri
      @deltaditri Місяць тому +2

      You can’t blame them. The numbers have to add up.

    • @Mlogan11
      @Mlogan11 Місяць тому

      @@deltaditri They only worry about the numbers "adding up" when it comes to minimum wage workers, never the executives.

    • @eastbaykidd8574
      @eastbaykidd8574 Місяць тому

      @@Mlogan11 Have you ever looked at the P&L statements of any of these companies to verify your assumptions?

    • @Mlogan11
      @Mlogan11 Місяць тому

      @@eastbaykidd8574 Have you? You need only go to a financial site to see quarterly reports where many companies are making record profits- and a subset of those same companies complaining about raising wages.

  • @cuautemoctgo
    @cuautemoctgo Місяць тому

    14,500,000,000 MD before taxes divided in each franchises. A franchise owner isn’t a millionaire.

  • @jefferylorance7988
    @jefferylorance7988 17 днів тому

    SAD the people who are hurt the most are those independent franchises owners…by this $20…
    2nd group to hurt are those lower income earners will now be unable to eat at a fast food place due to the huge price increase..
    3d group are the lay off workers and many with shorter hours..
    Not a win -win ..but a huge LOSE-LOSE for everyone..

  • @danielamaro3114
    @danielamaro3114 Місяць тому

    Yes, it is so bad that nobody is eating anymore. 😮😂

  • @user-ve4ix2sz1k
    @user-ve4ix2sz1k Місяць тому

    California also raised benefits of EBT(food) benefits
    Also

  • @duncanbauer7309
    @duncanbauer7309 Місяць тому

    If I lived in California, I'd start with one Roach Coach Family Run with the Title "Hacked" compared to Taco Bel, Mac Donalds, Burger King, Pioneer Chicken etc. etc. and become one of many getting Rich off the 20hrs minimum wage Insanity. If people will pay 25 dollars for a Fast Food Burger Combo, they'll pay 35 or more for a Gourmet Burger Combo. So why not offer a Dollar Store Option for Fast-Food, "Compare to the Big Mack/Whopper?

  • @mattwillman10
    @mattwillman10 Місяць тому

    In and out is cheaper and better than the others.

  • @jonysparks1
    @jonysparks1 Місяць тому +2

    Winning 🥇

  • @Pl-qq4yl
    @Pl-qq4yl Місяць тому

    so they raise prices , if the market will absorb it okay , if not , they will close the businesses or rebrand just for California and get under 60 locations. then they can pay $16 like before and no more drama and Bull.

  • @markrinella49
    @markrinella49 Місяць тому

    Really??? Wow didn't see that coming

  • @judgedreddhd
    @judgedreddhd Місяць тому +4

    Ya don't say?

  • @gabrielt.1678
    @gabrielt.1678 Місяць тому

    Dont care. Dont eat out anywhere. Home cooking keeps me fit.

  • @bobfish3176
    @bobfish3176 Місяць тому

    done with fast food!

  • @tommyabdill159
    @tommyabdill159 Місяць тому

    Royalty fee caps

  • @TheSkyline5467
    @TheSkyline5467 Місяць тому

    Spencer Soysher? Ugh try saying that every night.

  • @mattwillman10
    @mattwillman10 Місяць тому

    Not fast or cheap.

  • @Taffer-bx7uc
    @Taffer-bx7uc Місяць тому +2

    Imagine asking peasants to fork over their debased dollars to help pay other peasants so that we can claim we're making a difference. It's like to rob Peter to pay Paul

  • @scalways
    @scalways Місяць тому

    Jajajajajaja

  • @andrewe820
    @andrewe820 Місяць тому +7

    Trump

    • @pesetamaya3509
      @pesetamaya3509 Місяць тому +6

      My flag is flying sky high brother, Donald Trump 24.

    • @Colorado_Native
      @Colorado_Native Місяць тому +1

      ​@@pesetamaya3509Mine too! The sooner we get China Joe out of the White House Retirement and Care Center the better.

    • @pesetamaya3509
      @pesetamaya3509 Місяць тому

      @@Colorado_Native You got that right, brother.

    • @angus4352
      @angus4352 Місяць тому

      ​@Colorado_Native Ewe are going to be outraged when ewe find out that Taliban tRump merged his Untruth Social with a Chinese company 😂

    • @angus4352
      @angus4352 Місяць тому +1

      ​@@pesetamaya3509Taliban tRump will never see the inside of the White House again. Probably the Big House though😂

  • @gokusupersaiyan4241
    @gokusupersaiyan4241 Місяць тому +1

    Funny how BILLION dollar companiez pay minimum wagez but when they r forced 2 pay a possible chance at earning a livable wage now they cry we cant afford that ! POS - getting rich off the poor .

  • @relaws52
    @relaws52 Місяць тому

    Blame tRump

    • @Colorado_Native
      @Colorado_Native Місяць тому +4

      You sound like Karine Jean-Pierre. Clue - that's not a good thing.

  • @UP7729
    @UP7729 Місяць тому

    It’s a good start. Now let’s work on getting $25 an hour!