California's $20 minimum wage led to fast food price hikes, lower foot traffic: study

Published

1 year ago

June 13, 2024

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Californias new $20-an-hour minimum wage law for fast food workers plunged visits to popular chains as restaurants like McDonalds, Wendys and Burger King hiked prices to offset higher costs, according to a study.

Californias new $20-an-hour minimum wage law for fast food workers led to price hikes and decreased foot traffic at popular chains including McDonalds, Wendys and Burger King, according to a study.

Since the new law went effect in April 1, foot traffic at Burger King fell 3.86%, while Wendys was down 3.24% and McDonalds slipped 2.5%, according to a report by analytics firm Placer.ai.

In-N-Out Burger, the popular fast food chain which also recently raised its menu prices on key items to cope with the increased labor costs, saw 2.59% fewer customers, while Jack in the Box visits were down 0.8%.

“Its early, but were starting to see the ripple effect of the minimum wage increase across the broader restaurant industry,” R.J. Hottovy, the head of analytical research at Placer.ai, wrote in the report.

The law which raised the minimum wage for fast food workers from $16 an hour to $20 — was also blamed for forcing companies like Rubios Coastal Grill to shutter dozens of locations across the state.

Rubios, which last week filed for Chapter 11 bankruptcy protection, cited significant increases to the minimum wage in California as a reason for the closings.

Another fast food restaurant, Fosters Freeze, recently closed a location near Fresno, saying the franchise owner could no longer afford to pay workers the upgraded salaries.

In the six-month period leading up to the new law being enacted, fast food prices in California rose on average by 7% — forcing franchisees in the state to slash work hours, postpone capital improvements and expedite the deployment of automation features such as self-serve kiosks.

The Placer.ai report found that casual dining chains may be benefiting from the erosion of traffic at fast food restaurants.

Olive Garden and Chilis locations in California have seen an uptick in visits that outperformed the national average since the minimum wage law went into effect, according to the report.

Between February and March of this year, Olive Garden saw a 1% increase in customer visits throughout California.

Since the increased minimum wage law went into effect, the figure jumped to 1.88%, according to Placer.ai.

Chilis saw a 3.6% decrease in visits throughout California in February and March.

But in the eight weeks spanning April and May, it saw an increase of 0.19% in visits, the report found.

Casual chains such as Chilis and Buffalo Wild Wings have sought to entice customers through value meals, such as the latters all you can eat wings promotion on Monday and Wednesday that has so far proven successful.

Fast food companies warned that the increased labor costs would be passed on to the consumer in the form of higher menu prices.

In Los Angeles County, a double-double burger combo at In-N-Out now goes for $11.44 — a $0.76 increase from last year, KTLA reported.

In San Francisco’s tourist-heavy Fishermans Wharf location, a double-double burger coupled with french fries and drink costs $13.63 after taxes.

Less hungry customers would still have to shell out $7.50 for the double patty without the sides or beverage, KRON4 reported.

A report published earlier this year by Kalinowski Equity Research found that fast food chains such as Wendy’s, Chipotle, Starbucks and Taco Bell raised their menu prices by as much as 8% in preparation for the new minimum wage law coming into effect.

Wendys raised its menu prices by around 8% while Chipotle Mexican Grill hiked its prices by approximately 7.5%, according to the report.

Starbucks, the Seattle-based coffee chain, raised the prices of its menu items at its California locations by around 7%, while Taco Bell hiked its prices 3%.

Entertainment

Gregg Wallace speaks out after MasterChef sacking

Published

37 mins ago

July 26, 2025

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Gregg Wallace speaks out after MasterChef sacking

Gregg Wallace has spoken about his sacking from MasterChef after inappropriate behaviour while working for the BBC – but insisted he is “not a groper, a sex pest or a flasher”.

Wallace, 60, has apologised after a report, commissioned by the cooking show’s production company Banijay UK, found 45 out of 83 allegations were substantiated.

In an interview with The Sun, he said: “I know I have said things that offended people… I understand that now – and to anyone I have hurt, I am so sorry.

“I don’t expect anyone to have any sympathy with me but I don’t think I am a wrong ‘un.”

MasterChef co-host John Torode also had an allegation that he used an “extremely offensive racist term” upheld, as part of the same investigation.

Torode, who insisted he had “absolutely no recollection” of the alleged incident, has not had his contract for the show renewed.

Wallace has now defended Torode, saying: “I’ve known John for 30 years and he is not a racist.

“There is no way that man is a racist. No way. And my sympathies go out to John because I don’t want anybody to go through what I’ve been through.”

At one point, Wallace became tearful during the interview when describing the impact of the investigation on his family.

“I have seen myself written about in the same sentence as Jimmy Savile and Huw Edwards, paedophiles and sex offenders. That is just so, so horrific.”

In respect to the specific allegation of unwanted touching, Wallace denied groping a woman and said that, while he was attempting to flirt with her, he did believe the contact it was consensual.

“She gave me her phone number. I considered that to be intimacy. It was 15 years ago. Me, drunk, at a party, with my hand on a girl’s bum,” he said.

He also accepted he had briefly appeared with a sock on his private parts in front of four colleagues in MasterChef studio. But he said his is not a flasher, and people were either “amused or bemused” but not distressed.

On the broader allegations about using inappropriate language, Wallace accepted the criticism and suggested that some of his conduct could be explained by his autism and his background.

“I know I am odd. I know I struggle to read people. I know people find me weird. Autism is a… registered disability. Just because you can’t see it doesn’t mean it’s not real.”

He also blamed his former career: “I’m a greengrocer from Peckham. I thrived in Covent Garden’s fruit and veg market. In that environment that is jovial and crude. It is learned behaviour.”

Wallace told the newspaper he is now scared to appear in public: “I go out now in a disguise – a baseball cap and sunglasses, I don’t want people to see me. I’m scared.”

On Wednesday, the BBC confirmed a series of MasterChef filmed last year, before allegations against presenters Gregg Wallace and John Torode were upheld, will still be broadcast.

Politics

25% of young children and pregnant women malnourished in Gaza, charity says, as PM vows to fly critical medical cases to UK

Published

37 mins ago

July 26, 2025

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25% of young children and pregnant women malnourished in Gaza, charity says, as PM vows to fly critical medical cases to UK

A charity has warned 25% of young children and pregnant women in Gaza are now malnourished, with Sir Keir Starmer vowing to evacuate children who need “critical medical assistance” to the UK.

MSF, also known as Doctors Without Borders, said Israel’s “deliberate use of starvation as a weapon” has reached unprecedented levels – with patients and healthcare workers both fighting to survive.

It claimed that, at one of its clinics in Gaza City, rates of severe malnutrition in children under five have trebled over the past two weeks – and described the lack of food and water on the ground as “unconscionable”.

The charity also criticised the high number of fatalities seen at aid distribution sites, with one British surgeon accusing IDF soldiers of shooting civilians “almost like a game of target practice”.

MSF’s deputy medical coordinator in Gaza, Dr Mohammed Abu Mughaisib, said: “Those who go to the Gaza Humanitarian Foundation’s food distributions know that they have the same chance of receiving a sack of flour as they do of leaving with a bullet in their head.”

The UN also estimates that Israeli forces have killed more than 1,000 people seeking food – the majority near the militarised distribution sites of the US-backed aid distribution scheme run by the GHF.

In a statement on Friday, the IDF had said it “categorically rejects the claims of intentional harm to civilians”, and reports of incidents at aid distribution sites were “under examination”.

The GHF has also previously disputed that these deaths were connected with its organisation’s operations, with director Johnnie Moore telling Sky News: “We just want to feed Gazans. That’s the only thing that we want to do.”

Israel says it has let enough food into Gaza and has accused the UN of failing to distribute it, in what the foreign ministry has labelled as “a deliberate ploy” to defame the country.

‘Humanitarian catastrophe must end’

In a video message posted on X late last night, Sir Keir Starmer condemned the scenes in Gaza as “appalling” and “unrelenting” – and said “the images of starvation and desperation are utterly horrifying”.

The prime minister added: “The denial of aid to children and babies is completely unjustifiable, just as the continued captivity of hostages is completely unjustifiable.

“Hundreds of civilians have been killed while seeking aid – children, killed, whilst collecting water. It is a humanitarian catastrophe, and it must end.”

Sir Keir confirmed that the British government is now “accelerating efforts” to evacuate children from Gaza who need critical medical assistance, so they can be brought to the UK for specialist treatment.

Israel has now said that foreign countries will be able to airdrop aid into Gaza. While the PM says the UK will now “do everything we can” to get supplies in via this route, he said this decision has come “far too late”.

Last year, the RAF dropped aid into Gaza, but humanitarian organisations warned it wasn’t enough and was potentially dangerous. In March 2024, five people were killed when an aid parachute failed and supplies fell on them.

For now, Sir Keir has rejected calls to follow French President Emmanuel Macron and recognise a Palestinian state – despite more than 220 MPs signing a cross-party letter to demand he takes this step.

The prime minister is instead demanding a ceasefire and “lasting peace” – and says he will only consider an independent state as part of a negotiated peace deal.

UK

Trump issues warning to leaders as he arrives in Scotland

Published

37 mins ago

July 26, 2025

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'Immigration is killing Europe': Donald Trump issues warning to leaders as he arrives in Scotland

Donald Trump has landed in Scotland for a four-day trip including high-level meetings – praising Sir Keir Starmer as “a good man” but calling illegal migration a “horrible invasion” that is “killing Europe”.

Crowds gathered at Prestwick Airport in Ayrshire amid a major security operation for the US president’s visit.

Mr Trump told reporters: “I like your prime minister. He’s slightly more liberal than I am… but he’s a good man… he got a trade deal done. It’s a good deal for the UK.”

The pair are expected to discuss potential changes to the UK-US trade deal which came into force last month.

Trump left Air Force One to head to Turnberry, one of his Scottish golf courses. Part of the trip will include the opening of another course in Aberdeenshire, billed as “the greatest 36 holes in golf”.

“There’s no place like Turnberry. It’s the best, probably the best course in the world. And I would say Aberdeen is right up there,” the US president said.

“Sean Connery helped get me the [planning] permits. If it weren’t for Sean Connery, we wouldn’t have those great courses,” he added.

During the trip, President Trump will also hold discussions with Scotland’s First Minister John Swinney and EU Commission President Ursula von der Leyen, who is keen to secure a trade deal with the US.

Mr Trump told reporters there was “a good 50-50 chance” of an agreement with the EU but added there were “maybe 20 different” sticking points.

EU diplomats say a deal could result in a broad 15% tariff on EU goods and half of the 30% Trump is threatening to impose by 1 August.

The US president touched on illegal immigration and gave European leaders a stark warning.

“You better get your act together or you’re not going to have Europe anymore. You got to get your act together,” he said.

“But you’re allowing it to happen to your countries and you got to stop this horrible invasion that’s happening to Europe. Immigration is killing Europe.”

He was also scathing about the installation of wind turbines across the continent.

“Stop the windmills. You’re ruining your countries,” he said. “It’s so sad. You fly over and you see these windmills all over the place, ruining your beautiful fields and valleys and killing your birds.”

Domestically, Mr Trump faces the biggest political crisis of his second term in office over his administration’s handling of files linked to disgraced financier and sex offender Jeffrey Epstein, who died in prison in 2019.

He faced another round of questions after stepping off Air Force One.

“You’re making a big thing over something that’s not a big thing. I’m focused on making deals, not on conspiracy theories that you are,” he said.

Mr Trump added that “now’s not the time” to discuss a pardon for Ghislaine Maxwell, Epstein’s imprisoned accomplice.

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While the president’s visit did attract some enthusiastic flag-waving supporters at Prestwick Airport, he is also likely to trigger a number of protests, prompting Police Scotland to call in support from other forces in the UK.

The Stop Trump Scotland group has planned demonstrations on Saturday in Edinburgh, Aberdeen and Dumfries.

About 70% of Scots have an unfavourable opinion of Mr Trump, while 18% have a positive opinion, an Ipsos poll in March found.

Mr Trump is staying at his Turnberry property on Scotland’s west coast this weekend, before travelling to Aberdeenshire on Monday, where he will open a second 18-hole course.

He is due to return to the UK in September for a state visit hosted by the King – the first world leader in modern times to undertake two UK state visits.