California is forcing fast food chains to get creative to afford the state’s new $20 minimum wage.
One McDonald’s franchise owner, Scott Rodrick, is considering higher menu prices and reduced hours, saying that layoffs are the “last thing” he is considering.
“The last 12 days since this unprecedented law impacted franchisees in California has literally been a whirlwind. Frankly, it feels like an eternity,” Rodrick said during an appearance on “Varney & Co.”
MCDONALD’S CEO SAYS FAST FOOD CHAIN WILL FOCUS ON AFFORDABILITY AMID OUTRAGE OVER MENU HIKES
“I realize that my customers’ appetite for higher prices is not unlimited. So, when I take price to relieve margin pressure, it has to be done thoughtfully and with a plan. Charging $10 for an Egg McMuffin or $20 for a Big Mac, for me, is a nonstarter,” he continued.
In anticipation of the new law, Rodrick lifted his prices 5% to 7% between January and March. …