Current:Home > Stocks$25 McDonald's bundle in viral video draws blame for California minimum wage hike -×
$25 McDonald's bundle in viral video draws blame for California minimum wage hike
View
Date:2025-04-14 06:11:36
A fast food run ain't what it used to be.
A TikTok video of a customer complaining about the price of a $25 deal at a California McDonald's has sparked blame for the state's latest minimum wage increase for fast food workers.
Since going into effect on April 1, the law requires chains with 60 or more restaurants nationwide to offer workers a $20 an hour starting wage, up from the previous $16 standard.
The viral video shows the frustrated customer at a Southern California drive-thru venting as she calls the price of the "40-piece chicken McNuggets bundle" absurd. The combo comes with four containers of 10 piece nuggets and two large fries for $25.39 plus a sales tax, which she calls "McFlation."
"OK, so it's $25.39 for 40-piece nuggets and two large fries," the customer said in the video. "You couldn't even throw in a medium Sprite in there? Holy crap."
McDonald's $12 dinner box:Woman goes viral with hack that feeds family of 5. Can you get one?
Price was higher than SoCal average, McDonald's says
The video's comment section opened a forum for many to blame California's new law for the menu price soar.
However, the price in the TikTok video is higher than the average cost of the 40-piece chicken McNuggets bundle at Southern California locations, according to McDonald's. Prices vary by restaurant and are at the discretion of local franchisees.
A Finance Buzz report found that McDonald’s menu prices have doubled since 2014 across popular items more than any other of the analyzed chains including Starbucks, Taco Bell and Wendy's.
Between 2014 and 2024, the analyzed chains raised prices by 60%, nearly double the national inflation rate, according to the report. McDonald's raised the average menu prices more than three times the national rate.
Fast Act opens way for more fast food regulations
Democratic Gov. Gavin Newsom signed the Assembly Bill 1228 raising the minimum wage back in September. The bill also established a council to develop rules and regulations for the fast food industry.
At a November conference call, McDonald's CEO Chris Kempczinski said the company would increase prices to offset the wage increases, as well as cut restaurant costs and improve productivity.
"There will certainly be a hit in the short-term to franchisee cash flow in California," Kempczinski said. 'Tough to know exactly what that hit will be because of some of the mitigation efforts. But there will be a hit."
Kempczinski's salary and bonus package was $19.2 million in 2023, Restaurant Business Magazine reported. Federal securities filings showed that's an 8% increase from 2022.
The company's fourth-quarter net income in 2023 was $2.04 billion, up from $1.9 billion a year earlier, according to reporting by CNBC.
Other chains such as Chipotle also announced menu price raises shortly after the California bill's signing.
Higher prices worth supporting low income people, expert says
While minimum wage increases do lead to higher fast food item costs, the conversation should be about whether they benefit low income people, according to Chris Tilly, a professor who studies labor markets, inequality and public policies at the University of California, Los Angeles.
"The big critique of minimum wages is ultimately it's a job killer that it hurts the people that you're trying to help," he told USA TODAY on Thursday. "But the findings really for the last 30 years or so have said actually the minimum wage has been low enough that we haven't seen those effects."
He urged people to reframe their perspective and said that rising prices at chains like McDonald's can economically hurt people on the lower end of the income spectrum but minimum wage increases should not bear that burden.
He recommended addressing other core issues in the state like housing affordability and labor market barriers.
"We do have to think about how to help people," he said. "But to do that by hurting other low income people doesn't seem like the right strategy to me."
Contributing: Sara Chernikoff
veryGood! (69312)
Related
- Have Dry, Sensitive Skin? You Need To Add These Gentle Skincare Products to Your Routine
- Flight carrying No. 11 Auburn basketball team grounded after scuffle between players
- Americans are feeling effects of friendflation, or when friendships are too costly to keep
- Kevin O'Connell encourages benched Anthony Richardson: 'I still believe in you'
- What do we know about the mysterious drones reported flying over New Jersey?
- Pete Holmes, Judy Greer on their tears and nerves before 'The Best Christmas Pageant Ever'
- Tony Todd, Star of Candyman, Dead at 69
- Ex-sheriff in Mississippi is convicted of bribery and giving ammunition to a felon
- Residents worried after ceiling cracks appear following reroofing works at Jalan Tenaga HDB blocks
- Cowboys' Micah Parsons poised to make his return vs. Eagles in Week 10
Ranking
- How to watch the 'Blue Bloods' Season 14 finale: Final episode premiere date, cast
- 49ers' Nick Bosa fined for wearing MAGA hat while interrupting postgame interview
- A Timeline of Brianna Chickenfry LaPaglia and Zach Bryan's Breakup Drama
- Longtime Blazers broadcaster Brian Wheeler dies at 62
- Angelina Jolie nearly fainted making Maria Callas movie: 'My body wasn’t strong enough'
- Officer responding to domestic disturbance fires weapon; woman and child are dead in Missouri suburb
- 'Outer Banks' Season 5: Here's what we know so far about Netflix series' final season
- DOJ files lawsuit against Mississippi State Senate for severely underpaying Black staffer
Recommendation
Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
Tony Todd, Star of Candyman, Dead at 69
Can the Chiefs deliver a perfect season? 10 big questions for NFL's second half
Democrat April McClain Delaney wins a US House seat in a competitive Maryland race
Juan Soto praise of Mets' future a tough sight for Yankees, but World Series goal remains
Alabama vs LSU live updates: Crimson Tide-Tigers score, highlights and more from SEC game
Woman charged with murder in disappearance of roommate, who was last seen Christmas Day 2022
Florida men's basketball coach Todd Golden accused of sexual harassment in Title IX complaint