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McDonald’s, Chipotle to hike menu prices after California Gov. Newsom approves $20 fast food minimum wage

https://www.foxbusiness.com/economy/mcdonalds-chipotle-hike-menu-prices-california-gov-newsom-approves-fast-food-minimum-wage

McDonald's and Chipotle said they will raise menu prices in California to pay for the minimum wage hikes that Gov. Gavin Newsom recently signed into law.

McDonald’s, Chipotle to hike menu prices after California Gov. Newsom approves $20 fast food minimum wage

73 comments

czech

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Meanwhile, In n Out serves a better burger, for less money, paying their workers $19+/hr.

tdawg

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Yes, buuut in-n-out is also crazy religious so don't put them on too high a pedestal

Microplasticbrain

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Yea didn't they ban employees from wearing masks or something

Sarmyth

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I think there's a lot of freedom in the various regions. I'm in coastal California, and they've not felt particularly religious for a while. Also, they were following all the protocols as they changed throughout. Where I am, they also start at $23/hour.

If someone was banning masks, it's probably more regional or nuanced than a company stance, unless in my area they were all unaddressed rebels.

Microplasticbrain

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They did it in other states but couldn't in California because of some state law. Innout is one of the few fast foods I still eat, they pay decent wages compared to their competitors, but they aren't perfect. I think they still have bible verses on the bottom of cups.

Sarmyth

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Oh yeah, I almost forgot about the verses! It's just the reference, though, and not the actual verse. It's pretty passive as far as religious business practices go. If you did t already know what they were referencing, they'd look completely meaningless.

Microplasticbrain

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Yea the verses aren't a huge deal

rifugee

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Does the owner being religious effect whether or not they can pay a living wage and still make a profit? I personally don't think so. I think the key difference is that the company is private.

Captain_Patchy

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I think the key difference is that the company is private.

The magic answer! A private company is run by a C** and Board that are allowed to decide when it's profitable enough and are not subject to the requirement of coming up with ANOTHER 15% MORE profit THAN last quarter, EVERY. SINGLE. QUARTER. Or be replaced by the shareholders.

Artyom

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"My preferred megacorp is superior to your preferred megacorp!"

yote_zip

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This is what being addicted to ever-growing profit looks like. They could still make mountains of profit with the new minimum wage, but they can't make as much profit as they did before.

obinice

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If they aren't increasing their profits every year endlessly, they'll have to stop using that one clipart of the arrow line going up on a graph in their presentations.

They sacked the guy that knew how to change the image years ago and they're in too deep now to stop

hogunner

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Wall Street is cancer.

iAmTheTot

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Or, you know, make as much profit by the executives taking a pay cut.

Jelly_mcPB

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McDonald's has 200,000 employees, and another 2 million that work for McDonald's franchises. Thats 2,200,000 for every 100 million you took from the executives, you could give every employee a $45 bonus.

flying_monkies

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And if they took the money they use in stock buybacks and used that for salary, what would it be?

Captain_Patchy

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Stock buybacks used to be illegal market manipulation.

Jelly_mcPB

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Fired, they would all be fired. If you dissolve a company, there is no more company. For every billion dollars, you are talking about 450 bucks. Per person. While there is certainly a lot of bloat, it would knew cap them to get rid of management. It would any company. I'm not saying there is no need for reform and change, but in lots of companies even local management gets stock options.

flying_monkies

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Ummm, no. Stock buyback has nothing to do with dissolving the company, but increasing shareholder value.

So far in 2023, McDondald's has spent just a bit over 2B on stock buybacks to "increase their shareholder's value". According to the wiki, they have 200,000 employees.

That's a $10,000 bonus/employee assuming equal distribution.

Jelly_mcPB

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They have 200,000 actually employed by m Mc Donald's and another 2,000,000 employed by McDonald's franchises genius. Guess which ones are the workers most people see everyday.

Jelly_mcPB

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And when they dissolve those options for a one time 10,000 dollar benefit, then what? You got exactly what your payout would be, as a single mom, with 2 kids in income tax, for one year, so what after that? You sound like a 15 year old kid that is terrified at getting their first job to help your parents pay for their phone, car, and insurance on said first car. There are 50 jobs that you would never need to worry about this in. Maybe you wouldnt need to worry about any of that nonsense. Maybe you can't be an alternative artist that " arts" for 12 hours a week, but you can still make a livable wage off a trade, or a little higher learning.

Captain_Patchy

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Stock buybacks used to be illegal market manipulation.

flying_monkies

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You really don't understand what you're talking about. Maybe you should actually read the link, do some research and apply some thought before you get offended for the poor corporation.

If you pulled your head from your fourth point of contact, you'd understand what a buyback is. Then you might do further research and notice that over the last four years, McDonald's, on average, spends 3b/year on buybacks rather than spend the money on paying a decent wage for their employees.

Or, you can keep making shit up to fit your bullshit world view of "corporations great, every who works is just greedy".

Pretty sure I already know the way you'll go. I've given you a start for things to look at, it's the best I can do for the youth of today.

nature_man

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The prices were always gonna be raised, the wage increase is just an easy excuse, if the wage increase is reversed the prices will 100% still be raised and will almost definitely stay there.

ohlaph

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Exactly. Corporations love to blame labor.

nature_man

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Its not just labor they like to blame. I remember my local McDonald's raised prices by around 10 cents across the board without giving a reason even though they had gotten a tax cut that year, next year the tax was raised to its previous value and they raised prices again, this time citing the "tax increase". Corps will ALWAYS find a way to raise prices and blame it on something other than greed.

bus_go_fast

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Permanently Deleted

brygphilomena

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Fox business coming through with a piece to say "we told you so" and "higher wages just mean higher prices."

Fuck Fox.

BarterClub

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Fuck fox

9715698

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They would have anyway. Prices don't stay the same and they certainly don't go down.

jaspersgroove

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They won’t lower prices until people stop buying. And most Americans will happily spend themselves into the poorhouse in the name of convenience, and then blame the government for it, so…

moitoi

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This is a misleading title.

They hike the menu price to make more money using the minimum wage as an excuse.

tsonfeir

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Let them price themselves out of business then. Someone will come along and make an affordable burger.

PoliticalAgitator

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"The free market will fix it" seldom works, which is why it's still pushed as a solution.

Could this hypothetical someone make a more affordable burger ethically, or would they also have to fuck over their employees and suppliers?

Usually, the answer is "no". Businesses either use all the same sleazy, "race to the bottom" techniques or they go out of business because they offered a more expensive product to people without the luxury of being able to spend more.

But of course if you start paying people more, the billionaires will just fuck them out of that too. They want every dollar you have and they know people will spend every dollar they have to avoid being homeless or hungry.

tsonfeir

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Ok I’m fine with no fast food. Win-win. Have a good day.

PoliticalAgitator

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So am I, but that's not what you were advocating.

Without regulations, you won't get "if you can't ethically provide fast food then there will be no fast food", you'll just get another fast food company that's even more unethical.

tsonfeir

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I’m not advocating anything.

PoliticalAgitator

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Sure, pick another word to describe what you were doing and I'll update my comment.

tsonfeir

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All I’m talking about is food prices and wages. If they raise their prices and their target audience stops going—then they will lower prices or go out of business.

They are more than capable of keeping prices the same and paying more… they just get less profit.

The company who says “we will pay more wages and keep our prices the same” will eventually be the “cheaper burger” and profit more by taking all of the business.

This is the end of my participation. Good day.

Kolanaki

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"Facetiousness."

AceFuzzLord

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Large Fast Food Chains: We made record profits, again!

Also Large Fast Food Chains: Wait! If we are required to actually pay our staff, how will I, Mr. CEO the Douchebag, afford my 16th yacht? How will I be able to send my children to the finest schools in the world? How will I be able to afford to eat if my workers aren't suffering? Won't anyone think of the 1% and our problems?

themeatbridge

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Ok. Hike the prices and see how sales go.

TheRedSpade

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I doubt sales will change much. Most people who eat at McDonald's do so because they're addicted to it. Rising prices won't stop them.

athos77

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When I used to eat at McDonald's, it was because I was working 3 jobs and it was a quick, cheap way to get something vaguely nutricious into my body en route between jobs. Because of understaffing , the delays to order, to pay, and to get your food mean it's no longer fast; and it's certainly no longer cheap. The only remaining advantage is the "en route between jobs" part, but it's just easier to store a cooler in the car now.

themeatbridge

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I eat at McDonald's because it's cheap, it's fast, and it's reliably consistent. There are four or five different cheap fast food restaurants near the local McDonald's. If they all raise their prices, it won't be cheaper than a local restaurant burger, so the only advantage is time.

Captain_Patchy

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Like they haven't raised prices 4 times already this year.

Rhoeri

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I wonder if this will cause the Big Mac to shrink any more than it already has.

ohlaph

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It'll just be a mist now. One squirt for $4.89.

BigMacHole

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Told you Libruls! The Big Mac was still $0.99 before this law was signed because companies NEVER raise prices unless they have to raise wages!

iBaz

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The GOP will just blame it on Biden and all Trump’s cult followers will believe it.

qwertyWarlord

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It literally doesn't matter, fox. If it's so bad, why hasn't McD's up and left the state? Why haven't people stopped buying it? All the blather in the world isn't bringing California down so go eat shit.

Squizzy

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They should also have to pay employment taxes on the automated ordering machines.

rhythmisaprancer

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This is a great idea. Yes, automate things, but provide for the workers accordingly.

the_q

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Permanently Deleted

spacecowboy

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You ain’t wrong. People love to complain but seem to have forgotten that it’s easy to vote with your wallet.

the_q

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Permanently Deleted

Thrawne

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My wife and i joke about when we will have mcdonalds money now. Just nuts what a FF joint will charge for the simplest food.

RGB3x3

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I didn't understand why anybody enjoyed McDonald's 20 years ago and I don't understand it now.

It's absolute garbage food. And now it's way overpriced garbage food

rasputin

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Watch people wait in line to buy a $5 dollar hash brown. Meanwhile, In and Out still good value if you have a non-ridiculously-busy location near you.

Not an invitation to hear why you like a $18 burger better because the peanuts are free. Get real, I'm not an elephant.

FReddit

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They had $3.5 billion in cash at the end of the last quarter and reported net income of over $2.3 billion.

They're just assholes.

lieuwestra

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This is the free market don't you know? You could start your own business and undercut them on price.

Sanyanov

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No, they're acting in the interest of their real customers, the ones they rely on to work and expand.

Investors.

And investors are angry if you don't give them money.

This entire system is very, very fucked up, and due to that, McD will always do price rises and everything to drive revenue up.

Captain_Patchy

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Like they hadn't JUST raised prices multiple times in the last 8 months.