To compensate for the extra cost of labor, restaurants like McDonald's, Chipotle, and Jack In the Box plan to raise menu prices at their California stores.
AdvertisementIn an October earnings call, McDonald's CEO Chris Kempczinski said that menu prices would increase in California, but didn't say which items or by how much.
Kempczinski said in the call that the company would be using the wage increase as an opportunity to gain on its competitors.
This will be the fifth time the company has raised menu prices in the last two years.
Pizza Hut cut its in-house delivery program, eliminating 1,200 delivery workers to prepare for the pay increase.
Persons:
—, Jack, Chris Kempczinski, Kempczinski, McDonald's, Chipotle, Jeff Hanscom, Hanscom
Organizations:
Service, National Owners Association, Street Journal, Wall, International Franchise Association
Locations:
California, Chipotle