Fast Food Luxury: McDonald’s Considers Leaving California as 80% of Americans Can No Longer Afford Fast Food

Gov. Newsom’s legislation has led to an increase in fast food prices throughout the Golden State, which were already exorbitant. Now, 80% of residents say they can’t afford fast food, but instead of lowering their prices, McDonald’s may leave California for good.

McDonald’s menu prices have increased by more than 100% over the last ten years. A Big Mac meal can now cost up to $18, a Quarter Pounder with Cheese meal is $11.99, and an Egg McMuffin costs $7.29 in some states. Of course, McDonald’s isn’t alone. Five Guys, Taco Bell, Burger King, and every other famous chain are charging far more than they did just a few years ago.

The new law increased the minimum wage for fast food workers from $16 to $20, and while $4 may not seem like a lot, that’s a 25% increase. And since McDonald’s employs more than 70,000 Californians in its 1,300 Golden State locations, the corporation will end up paying hundreds of thousands, if not millions more, in labor costs this year.

Realistically, both options will have a negative effect on the already struggling American economy. Increasing prices will mean even fewer Americans can afford a McDonald’s burger, and layoffs would mean a spike in unemployment.

Thanks to advancements in artificial intelligence technology, McDonald’s and other fast food chains can and have started using self-service kiosks instead of cashiers. They consider the machines to be a long-term investment, as with just one purchase, they can save millions over the years on wages.

Additionally, there are already robots that can cook and prepare food. Although it sounds futuristic now, it is highly likely that McDonald’s won’t need any human workers within the next decade.

Although it has yet to be confirmed, there are rumors that McDonald’s may actually close its 1,300 California locations as they simply cost too much money to run. This decision would certainly be life-changing for the company itself and California residents, but it has even bigger implications for the nation.

However, between the increased cost of fast food, the layoffs, and the threat that some companies may abandon the state, the governor is now dealing with substantial backlash. Now, some say this sequence of events will affect the rest of the country, not just California.

While it would mean more money in the pockets of minimum wage workers, raising the minimum wage will make consumer products, like fast food, more expensive, which is something that most Americans simply cannot afford.

Thanks to inflation and the ever-increasing cost of living across the country, the vast majority of Americans are struggling to pay their bills, let alone buy anything that isn’t an absolute necessity.

Several companies, like Starbucks, Pizza Hut, and KFC, reported a decline in sales for the first quarter of 2024, which hasn’t happened in years. While some are planning to cut back on staff and raise prices to combat this problem, they may have to actually decrease their prices if they want customers to come back.

The American fast food industry has long been one of the most profitable and successful in the country. However, that may change very soon if companies can’t find ways to make their food more affordable.