McDonald's and Chipotle Mexican Grill will raise their menu prices in California next year to offset the state's minimum wage increase for fast-food workers, executives said as both chains announced quarterly earnings in recent days.
McDonald's has not decided how much it will hike prices in California as workers' wages rise to $20 an hour, CEO Chris Kempczinski said Monday.
Restaurants have been hiking menu prices for more than two years in response to rising ingredient and labor costs.
Unlike Chipotle, which owns the overwhelming majority of its locations, most of McDonald's California locations are run by franchisees.
"We believe we're in a better position than our competitors to weather this, so let's use this as an opportunity to actually accelerate our growth in California," Kempczinski said.
Persons:
McDonald's, Chris Kempczinski, Chipotle, Jack Hartung, Hartung, Kempczinski
Organizations:
U.S . Bureau of Labor Statistics, McDonald's, National Owners Association, U.S, CNBC
Locations:
California, McDonald's, McDonald's California, McDonald's U.S