(NewsNation) — Popular fast food chains in California have gotten pricier since the state raised the minimum wage earlier this month.
Fast-food workers now make at least $20 an hour after a new law took effect in April, which has led to some chains raising menu prices by as much as 8%.
Chick-fil-A decided on the biggest price hike this month, and a chicken sandwich can now run for more than $8. Other meal combinations are costing more than $12.
Wendy’s has raised prices by roughly 8% and Chipotle has raised prices by 7.5%, while Taco Bell raised prices by 3% and Burger King went up by about 2%, according to data from Kalinowski Equity Research.
KER compared prices at 25 restaurants for each chain and conducted a side-by-side comparison of specific menu items before and after the wage hike. McDonald’s executives warned that it would also increase menu prices following the wage increase, but KER found that this has not yet happened.
Democrats in the California State Legislature passed Assembly Bill 1228 last year, increasing the minimum wage for fast food workers from $16 to $20 an hour.
Advocates have been applauding the move, but critics say it will lead to higher prices and layoffs.
Economists say raising prices needn’t be a given. Owners could cut executive pay or shareholder benefits or accept a decline in corporate profits instead of laying off workers or passing the costs onto consumers.
Labor unions have applauded the law raising wages in a state known for its high cost of living. The Service Employees International Union said California fast-food workers sometimes live in poverty and must rely on public assistance due to low wages.
NewsNation’s Brooke Shafer contributed to this report.