this post was submitted on 26 Apr 2025
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Itβs prepared food, so the price also depends on wage increase and changes to tip structure in that state. Several states began fair wage for servers after 2008, so the gratuity may now be included in the price of the meal.
I would like to say, California instituted a $20 fast food minimum wage which was estimated to cause an 8% increase in overall wages (they already trend high there) but a 1.5% increase in menu prices. To my mind this tracks as wages are kind of small (too small) against ingredients, building lease, etc.
Granted, increasing the wages of everybody in the agricultural supply chain would probably have a bigger effect, but overall I think businesses tend to mcfucking lie about the impact of wage increases on consumer prices.
Iβm more getting at tipped worker vs fair wages for servers. The minimum wage in the US is $7.25/hr, but tipped worker minimum wage is $2.13/hr. States that have shifted to fair wages now must pay their workers standard minimum wage. Most eateries in those states have increased their prices 15-20%, and inform customers that the gratuity is now included in the meal price. Itβs no different on your wallet, but could account for some of the increase in price point depending on the location of the establishment.