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By Mish Shedlock of MishTalk

Prices at fast food restaurants in California are set to jump in April as huge minimum wage hikes kick in. Escalating restaurant prices won’t be limited to California.

Expect to Pay More

California already has some of the highest fast food prices in the nation. Expect to pay still more, and not just in California.

The Wall Street Journal notes Burritos and Big Macs to Cost More in California as Pay Rises

Impact on Joe’s Grill and Susie’s Diner

Don’t think for one second that these wage hike only hit wealthy franchise owners. For starters, many franchise owners are deep in debt to buy that franchise.

In addition, how are Joe and Susie going to get help at $16 when McDonalds is paying $20?

The answer is they won’t. Effectively, $20 is the new minimum wage in California, and not just restaurants.

The franchise owner will weigh the cost of a kiosk vs shelling out $250,000 in wages. Joe’s Grill and Susie’s Diner don’t have that option.

Where Workers will Get a Raise on January 1

I discussed wages and other factors yesterday in 2024 Inflation Outlook: How Much Inflation Is Baked in the Cake?

The post today show the actual impact to franchise owners in California but it’s not just California businesses that are impacted.

Is Inflation Down? That’s What President Biden Says

Let’s tune into a White House Statement on inflation to discuss what’s real and what is imaginary.

For discussion, please see Is Inflation Down? That’s What President Biden Says

Transitory Inflation?

Economists now widely believe in the softest of soft landings. But here’s the key question: Is inflation transitory or is the recent decline of inflation transitory?

I suggest it’s the decline in inflation that is transitory until the Fed delivers a recession.