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Economist analyzes impact of fast food employee wage increase

Jack in the Box is among the fast food chains where employees will see an increase in hourly wages.
Posted at 6:01 PM, Apr 01, 2024
and last updated 2024-04-01 21:01:33-04

SAN DIEGO — You favorite fast food chain is probably known for being quick and cheap.

The "cheap" part could be changing, depending on your definition.

Fast food employees in California are getting an increase in pay to $20 dollars an hour.

"That'll help them in terms of dealing with the high cost of living that we have here in San Diego and in the rest of the California," said Economist Professor Alin Gin with the University of San Diego.

However, Gin believes the change will have a bigger impact than just the number on employees paychecks.

"Restaurants might respond by boosting prices. I've seen estimates where it might increase fast food prices by about 5%," said Gin.

On Monday, the Service Employees International Union took to X to voice the union's opinion regarding the wage increase compared to some CEO's income.

Fast food giants are stirring panic over CA's $20/hr minimum wage, but let's look at the numbers:
McDonald's CEO is paid $8,543.27 an hour.
Burger King’s CEO is paid $56,250 an hour.
Domino’s CEO is paid $4,875 an hour.
Just throwing that out there. These companies can pay $20 an hour without raising prices.
Service Employees International Union