Fast Food’s New Playbook

TODAY’S STORY

Hourly wages for California workers have risen by an average of $2 per hour. With approximately 35 employees per restaurant, this wage increase adds around $8 million annually to labor costs.

As a result of the rising wage pressure, fast-food restaurants like Dave’s Hot Chicken are getting creative, often overhauling their entire operations to drum up new business and reduce costs (dollar figures are estimates per location, per year).

Not mentioned in the graphic above, fast-food chains are also raising prices. Dave’s and other restaurants, including Chipotle, Shake Shack, and McDonald’s, have lifted menu prices at California locations. Dave’s bumped prices by 9% and plans to raise them again in 2025.

Raising prices is part of the recipe, but it is becoming increasingly clear that fast-food restaurants must get better in other areas to remain competitive. 

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Kieran & Justin Ryan