The minimum wage for many fast food workers in California rose to $20 per hour on Monday, sparking joy for employees but warnings of likely price increases in the state which already faces a high cost of living.
Staff flipping burgers or making tacos at large chain restaurants will now be guaranteed one of the highest base rates in the country.
More than half a million people in California are employed in the fast food sector, at globally familiar chains like Burger King and Taco Bell, but also smaller home-grown brands like In-N-Out Burger. "But the truth is that well over half are over 25... and a quarter are actually the main earners in their home."
Some chains have said they will need to increase prices and warn the wage hikes could ultimately cost jobs. Alexander Johnson -- who operates a number of franchises of Cinnabon bakeries and Auntie Anne's, a pretzel chain, in the San Francisco Bay area -- told ABC7 that he was considering layoffs and higher prices to cover the $470,000 increase in costs.Economists are divided on the effects of the minimum wage, which is set at $7.25 federally, though varies widely by state.
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