California’s $20 wage for fast food workers is just a few weeks old, and the effects on workers and customers are beginning to emerge.
At Chipotle, the law drove a 20% increase in wages for its restaurant staff in the Golden State, the company said during its earnings call on Wednesday.
To offset that cost, menu prices notched up about 6% to 7% for customers in California, CEO Brian Niccol said.
CFO Jack Hartung added that the average ticket in California before the increase wasn’t all that different from other states, even though the cost of doing business there is generally higher than other areas of the US.
Chipotle is based in California and has 475 restaurants there, representing about one-eighth of the company’s total count.
“After the increase, we still have burritos that are going to be reasonably priced,” Hartung said. “That chicken burrito is gonna be around $10.”
Read more here from Business Insider.
