Consumers received a much-needed cooldown as inflation slowed more than expected in May, new data detailed. But it didn’t quite drop for the fast-food industry.
More than two months after California’s fast-food workers saw a pay increase to $20 per hour, consumers are noticing the increase in the price of their go-to orders.
“It definitely adds up,” said Jocelyn Mercado when she visited a Starbucks in San Jose. “Before it was a $5 drink, but with all my add ons, it's $10."
In order to offset the rise in wages, fast-food chains opted to increase prices on their offerings.
And it’s something Robert Chapman Wood, a business professor at San Jose State University, said won’t really deter consumers.
“People are well paid around here, and they can afford higher fast-food prices, and they're doing it," he said.
For Pauline Esslou of San Jose, she’s willing to pay the increased price.
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“The Bay Area is so expensive, so the cost of living is so much here,” Esslou said. “I don't feel bad about paying that."
Currently California’s minimum wage is %15.50 for all workers, but the increase was estimated to have impacted more than 500,000 workers.
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