Despite a general cooling in inflation as reported in May, fast-food prices in the Bay Area continue to climb, reflecting recent wage increases in the industry.
Following a mandated pay hike to $20 per hour for California’s fast-food workers over two months ago, consumers are now feeling the pinch when purchasing their favorite meals.
“It definitely adds up,” noted Jocelyn Mercado, who frequents a Starbucks in San Jose. “What used to be a $5 drink has now doubled to $10 with all my add-ons.”
In response to the wage increase, fast-food chains have raised their prices to balance their payroll expenses.
Robert Chapman Wood, a business professor at San Jose State University, explained that the higher prices are unlikely to deter local consumers. “People are well paid around here, and they can afford higher fast-food prices, and they’re doing it,” he said.
Pauline Esslou, another San Jose resident, echoed this sentiment. “The Bay Area is so expensive, so the cost of living is so high here,” she said. “I don’t feel bad about paying that.”
While California’s minimum wage stands at $15.50 per hour for all workers, the recent wage increase for fast-food employees has reportedly impacted over 500,000 workers.
Related Topics:
