"California Fast-Food Dilemma: Rising Prices and Collapsing Businesses"
Originally Published 1 year ago — by Los Angeles Times
South Los Angeles, a region with limited access to affordable, healthy food due to a lack of supermarkets, is bracing for higher prices at fast-food restaurants as the minimum wage for fast-food workers is set to increase from $16 to $20 on April 1. With about 40% of residents living in a food desert, the looming price hikes, anticipated to be around 4% to 5%, are expected to impact families who rely on fast food for daily nutrition. While some plan to moderate their fast-food intake, others, including fast-food chains, acknowledge the imminent price increases. The new law, covering workers at chains with 60-plus locations in the U.S., is also expected to lead to layoffs, automation, and reduced work hours as companies try to offset the higher labor costs.
