California
McDonald’s, Chipotle to raise menu prices in California next year as fast-food wages rise to $20
Chipotle and McDonald’s fast-food restaurants in Chinatown in Washington, D.C.
Jeff Greenberg | Universal Images Group | Getty Images
McDonald’s and Chipotle Mexican Grill will raise their menu prices in California next year to offset the state’s minimum wage increase for fast-food workers, executives said as both chains announced quarterly earnings in recent days.
McDonald’s has not decided how much it will hike prices in California as workers’ wages rise to $20 an hour, CEO Chris Kempczinski said Monday. Chipotle expects it will raise prices by a “mid-to-high single-digit” percentage in the state, but has not made a “final decision,” its Chief Financial Officer Jack Hartung told analysts on the company’s conference call Thursday.
Restaurants have been hiking menu prices for more than two years in response to rising ingredient and labor costs. Prices for food away from home were up 6% in September compared to a year ago, according to the U.S. Bureau of Labor Statistics.
While diners are already used to paying more for their meals, some have been eating out less often to mind their budgets. McDonald’s executives said Monday that consumers making under $45,000 have been visiting less frequently, contributing to a dip in its U.S. traffic this quarter.
In September, the restaurant industry and labor groups ended an expensive, monthslong battle over a bill that would have created a 10-person council that governs fast-food chains in California by setting guidelines for working conditions and wages.
Instead, the two sides settled on a compromise: a nine-person council that only has the power to set the pay floor for the fast-food industry in the state through 2029. Chains with at least 60 locations nationwide will have to pay their workers at least $20 an hour, starting April 1. Between 2025 and 2029, the appointed council will have the authority to raise the hourly minimum wage annually by whichever is lower: 3.5% or the annual change in the consumer price index.
For Chipotle, the new pay floor means it will hike its wages roughly 18%. Hartung said the chain’s average wage in the state is currently $17 an hour.
As wages rise, Chipotle customers will pay much more for their burritos and bowls in California, which is home to roughly 15% of Chipotle’s restaurants — and the company’s headquarters.
The chain has already raised prices four times since June 2021. The most recent price increase of 3% happened earlier in October.
At McDonald’s, price increases will only be one method to offset the higher labor costs. The chain will likely also look at ways to improve productivity to cut restaurant-level costs, Kempczinski said Monday.
Unlike Chipotle, which owns the overwhelming majority of its locations, most of McDonald’s California locations are run by franchisees. They have the freedom to decide prices, although the chain provides advice on the best strategy. Just under 10% of McDonald’s U.S. restaurants are located in California.
The burger chain anticipates that operators there will feel the pain of the wage hike in the short term.
“There will certainly be a hit in the short term to franchisee cash flow in California,” Kempczinski said on the company’s conference call, adding that it’s unclear at this point how big the blow will be.
The National Owners Association, an independent advocacy group of more than 1,000 McDonald’s U.S. franchisees, projected the bill will cost each restaurant in the state $250,000 annually, according to a September memo viewed by CNBC. McDonald’s, which dealt with franchisee backlash for its role in the compromise’s negotiations, declined to comment at the time on the NOA’s estimates.
In the long term, McDonald’s thinks that the higher wages could be a boon to its business.
“We believe we’re in a better position than our competitors to weather this, so let’s use this as an opportunity to actually accelerate our growth in California,” Kempczinski said.
Don’t miss these CNBC PRO stories:
California
California voters narrowly reject $18 minimum wage; first such no-vote nationwide since 1996
California voters rejected a ballot measure that would have raised the state’s minimum wage to $18 per hour; the first failure of such an initiative nationwide in almost 30 years.
The tabulation came two weeks after Election Day due to the narrowing margin, as 49.2% of Californians ultimately supported the wage hike, falling just short.
The vote was geographically disparate, with every Bay Area and coastal county except San Luis Obispo, Orange, Ventura and Del Norte supporting the measure – and every inland county except Alpine and Imperial opposing it.
The current minimum wage in California is $16 per hour, but includes a $20 per hour exclusion for fast-food restaurants with 60 or more locations. The latter was instituted in 2023 with the approval of Democratic Gov. Gavin Newsom.
NEWSOM: CRITICS SAID CA WAGE INCREASE WOULD BE A JOB-KILLER; THE OPPOSITE HAPPENED
“Californians are sending Gavin Newsom and the SEIU a clear message: They’re sick of being lab rats for their pet projects,” Rebekah Paxton, research director for the Employment Policies Institute said in a statement.
“Voters saw the devastating economic fallout of the $20 fast food minimum wage law, and for the first time in state history, voted against a statewide minimum wage hike.”
Newsom, however, previously defended his support for wage hikes, saying the fast-food pay increase gave workers a “greater voice in workplace standards.”
TOP REPUBLICANS WARN NEWSOM HIS OIL REFINING PHASE-OUT ENDANGERS MILITARY READINESS
“Predictably, this modest law prompted fainting spells from conservatives and their enablers in the media,” he wrote in a Fox News Opinion column earlier this fall.
“Even before I signed the bill, they quickly said it would lead to devastating job cuts and cause scores of businesses to close.”
“We believe in fairness, equity and the idea that everyone deserves a chance to succeed. And these results dispel the cynics who say we must choose between protecting workers and growing the economy.”
California Chamber of Commerce CEO Jennifer Barrera appeared to disagree, telling the Associated Press after the outlet called the tally for Proposition 32 that the economy and personal costs were top of mind in the election, and that that message resonated with the voters.
CLICK HERE TO GET THE FOX NEWS APP
Millions of dollars were poured into support for the effort, according to CalMatters, which reported startup entrepreneur Joe Sanberg earmarked $10 million while spearheading the Proposition 32 effort. The outlet reported Democratic Los Angeles City Councilman and former state Senate President Kevin de Leon was a second prominent backer.
There have been about two dozen minimum-wage-hike ballot initiatives since 1996; the last time one failed.
In that election, Missourians declined to approve a hike to $6.75 and Montana decided against moving its minimum wage up to $6.25 per hour.
The Associated Press contributed to this report.
California
Top 25 California high school boys basketball preseason rankings (11/17/2024)
The season started Monday. We didn’t peak. These are out a couple days late, but promise, all were picked before any of the Southern Section squads got underway.
It’s hard to bet against the two-time defending Open Division champion Harvard-Westlake Wolverines, especially with the return of perhaps the state’s best two-way player in Nik Khamenia, a 6-8 power forward headed to Duke, and the addition of super shooter Joe Sterling.
Plus they have arguably the state’s best coach in David Rebibo. That’s a mouthful.
But St. John Bosco is simply that good, blessed with a trio of players that no one can match. Most of the rest of the state tips off next week. Until then, here’s a look at the state’s Top 25 with a lot of input from SBLive’s Tarek Fattal.
Note: Only teams that play for a CIF State California title were considered for this rankings, thus eliminating Prolific Prep of Napa Christian, which can and will play for both a mythical national title. On Tuesday, the Crew defeated the No. 1 team in the SBLive preseason national rankings.
Brandon McCoy, Elzie Harrington and Christian Collins make up arguable the best trio in California. Very talented group with an elite coach in Matt Dunn.Collins is expected to be eligible immediately after valid change of residence.
Nik Khamenia and new transfer Joe Sterling will be a savvy pair of experienced players bringing along a bevy of high-talented underclassmen under the guidance of David Rebibo. The Wolverines are the two-time defending CIF Open Division champions.
Brayden Burries, Issac Williamson, Myles Walker and Dominic Copenhagen make up a cohesive unit that reached the Open Division finals and CIF State Open regional final.
Tyran Stokes is nursing a wrist injury that could sideline him for the first few weeks of the season, but Lino Mark, Zach White and Caleb Ogbu can handle the heavy lifting until Stokes returns. With Stokes, the Knights will see themselves nationally ranked by various outlets.
The headliner of course is Baylor-bound and fourth-year starter Tounde Yessoufou, who is nearing 3,000 career points at a 29.0 per game clip to go along with 11.0, 2.8 steals and 1.7 blocks per outing in his career. But the Knights also boasts 4-star guard Julius Price, another four-year starter with offers to Minnesota and Washington. Other starters Gunner Morinini and Abdoul also return.
The defending Northern California Open champion graduated a ton but return Elias Obenah, Yale-bound Alvin Loving and two-sport standout Carlton Perrilliat among a host of others in an attempt to duplicate a nearly perfect season of sharing. Not a single Pride player averaged even 10 points per game last season.
The Crusaders were slated a few slots higher until it was learned Cal-bound guard Semetri Carr, who played with the Crusaders during an impressive June live period, decided to transfer from Branson-Ross to Redwood-Larkspur, his hometown public school. The Crusaders, the NorCal Open runner-up and two-time Central Coast Section Open champ, return loads of D1 talent, including 6-5 wing Jasir Rencher (Texas A&M commit), 6-9 post Steve Emenek, 4-star junior guard Andrew Hilman, Ryder Bush, along with transfers Kirby Seals (Santa Cruz), D.J. Armstrong (Branson). Watch out for 6-9 frontliner J.P. Phitvos.
The Lions will compete to win the Trinity League and are destined for the Open Division with returners Jarne Eyenga and Godschoice Eboigbodin, new transfers Brannon Martinsen (Mater Dei) and BJ Davis Ray (Duncanville), and rising sophomore Earl Bryson.
What a front line with Oklahoma-bound Alec Blair, a 6-6 senior who can play and defend anywhere, and 6-7 bangers David Balogun and Braddock Kjellevig. The pressure will be on the backcourt but returning starter Ibrahim Monawar, a 6-2 junior, back the Spartans sould be able to run with anyone.
The Eagles have a trio that should win them 20-plus games alone in Dallas Washington, Brayden Kyman and Drew Anderson. Newcomer Kaiden Bailey, who scored 30 points per game last year for Calvary Chapel gives SM a dynamic, superstar element in the backcourt.
Nothing new in Chatsworth. An influx of transfers (yet again) highlighted by Maximo Adams, Chris Nwuli and Gavin Hightower join returners Bryce Cofield, Bryce James and Jayden Alexander.
The Monarchs return guards Owen Verna and Luke Barnett. Forward Blake Davidson and junior Malloy Smith will be expected to play bigger roles this upcoming season. Evan Willis is a 6-foot-7 freshman wing to keep an eye out for.
Gavin Sykes, a 6-4 senior, and Stanford-bound Myles Jones came in late last season, beat De La Salle at NorCals and was edged barely by Salesian. Sykes and Jones return as does super sophomore Elijah Payne, Ryan Atkins (6-7) and Mason Brown. Coach Bruce Fantazia, one of the best in NorCal, will also coach Modesto Junior College this season.
The best from the San Diego Section, the Aztecs return their four leading scorers in J.J. Sanchez (19.8 points per game), Devin Hamilton (13.2), Xair Mendez (12.4) and Alek Sanchez (8.8). They don’t just score in bunches, they play so well together, and last year were in super synch. A year more in tune, there’s no reason to think they can’t get to 30 wins.
The NorCal Division 1 champion last season returns UC Irvine commit Luke Isaak to go along with Mason Thomas, Elliot Conley and Thomas Coney. Big teams might give the Wolves trouble, but with such strong guard play, helped by newcomer Tyler Smith, the Wolves could put together a 30-win season.
Redondo has a big three in Hudson Mayes, SJ Madison and Chris Sanders. Coach Reggie Morris will also have newcomer Chace Holly, a junior transfer from Lynwood, at his disposal.
Julien ‘Manu’ Gomez will be the senior leader, but the star is sophomore Gene Roebuck, who’s carrying offers to Kansas, UCLA and Cal. MJ Smith and King Riley will fill roles nicely. La Mirada has added some size, too, with Santiago Lopez (6-7) and Mayfair transfer Daquan Idemudia (6-5).
Nate Garcia is finally a senior. The 7-foot, All-CIF big man will be accompanied by Eli Gardner, Elijah Smith, Jacob Allen and sophomore Ziaire Rasshan. Spartans return nine of their top 10 players from last season. That’s a recipe for success under Mike LeDuc, who’s in his 45th season coaching.
Jason Crowe and his son Jason Crowe Jr. are now at Inglewood, along with three more impact transfers in Parker Jefferson (from Texas), David Conerly (Westchester) and Dwayne Boston Jr.
With more than 2,100 career points, Jake Hall has led the Lancers to 78 victories including last year’s sparkling 30-3 record when he gave up his scoring (18.9 per game) for the good of the team. Three junior guards — Briggs Young, Trenton Mehl and Jayden Garner — should help the Lancers to another 25- to 30-win season.
Forward Douglas Langford will be the leading force for St. Pius as he enters his senior season. Returner Omari Cuffe, Kayleb Kearse (Serra), Dayvion Gates and Jaden Erami (Bosco Tech) make for a good Donte Archie-led squad.
The Warriors return a dynamic duo that rivals anyone in SoCal when it comes to athleticism and length: Tae Simmons and Dillan Shaw. Sophomores Max Hackney and Dominc Loehle are primed for breakout seasons.
The Griffins are a savvy, veteran bunch led by returnrs Trent Minter, Wesley Trevino, Liam Gray, Tyler Lopez and Samori Guyness. All seniors and a junior (Lopez). Los Alamitos likes to play fast.
Coming off a 26-5 season, Pasadena possesses one of the biggest stock risers in SoCal in 6-foot-10 junior forward Josh Irving. Bulldogs return 11 players from last season.
The defending state Division 2 champions return the San Francisco Chronicle’s 2023-24 Player of the Year Ardarius Grayson, a 6-foot do-everything guard who did everything in the state finals: 20 points, 12 rebounds, seven assists, five steals. Some transfers should help with those who graduated. Xan Meyer-Plettner (8.0 ppg, 6.5 rpg) and Saddiq Alarbesh (9.1 ppg) should have even a bigger role.
California
A California child is infected with bird flu. Here’s why this case is different
In summary
Bird flu has been spreading among dairy workers in California’s Central Valley, jumping from cows to people. A new suspected case in the Bay Area came from an unknown source.
An Alameda County child with mild upper respiratory symptoms tested positive for bird flu, state public health officials announced today. The potential infection is the first known case in California that does not appear to have originated from contact with infected cattle.
State health officials are waiting for the Centers for Disease Control and Prevention to confirm the test result.
Public health investigators suspect the infection may have originated from wild birds, which are the main carriers of bird flu, according to a statement from the California Department of Public Health. The agency did not disclose information describing the child’s interactions with wildlife.
The child displayed mild respiratory symptoms and tested positive for multiple viruses, according to Austin Wingate, a spokesperson for the Alameda County health department.
Doctors did not initially suspect bird flu. Officials detected it through routine influenza subtyping, Wingate said. Family members tested negative for bird flu, but they had other viruses.
Officials are working to notify and test close contacts of the child, which include individuals at a daycare the child attended.
“We want to reinforce for parents, caregivers and families that based on the information and data we have, we don’t think the child was infectious – and no human-to-human spread of bird flu has been documented in any country for more than 15 years,” said state Public Health Officer Dr. Tomás Aragón said in a statement.
Aragón emphasized the risk to the general public remains low. People can become infected through close contact with infected animals, according to the CDC. Dairy and poultry workers and people who work with wildlife face the greatest risk of contracting the virus.
Some infectious disease experts are concerned about what this case could signal about the wider bird flu outbreak sweeping the country, which started in 2022.
“We’re seeing the numbers go up, the number of infected farms, the number of farm workers, we now have this child. All of these signs to me suggest that things are going in the wrong direction, not the right direction,” said Sam Scarpino, an epidemiologist with Northeastern University in Boston who is not involved in the California disease investigation.
Cases spreading in Central Valley dairies
The case comes as California grapples with the country’s largest bird flu outbreak among cattle and farmworkers. There are 26 confirmed human cases of bird flu primarily in the Central Valley where the virus has swept through 335 herds, according to state health and agriculture officials. Workers in the dairy industry have contracted the virus through close contact with infected cows.
The state health department has distributed more than 3 million pieces of personal protective equipment to farmworkers. It has also secured 5,000 doses of the seasonal flu vaccine for farmworkers from the CDC.
The federal government has a small stockpile of bird flu vaccines, but they have not been distributed. Instead, health officials encourage people to get vaccinated for influenza, COVID-19 and respiratory syncytial virus to help prevent co-infections like the child had.
“We want to make sure in general that we promote people getting up to date on vaccines and protecting themselves from seasonal illness, from seasonal flu,” said Dr. Erica Pan, the state’s top epidemiologist, in a previous interview with CalMatters.
Scarpino said California has done a good job of testing farmworkers compared to other states where sick cattle have infected humans, contributing to its relatively high number of confirmed cases, but surveillance efforts across the board need to be increased.
As seasonal flu rates increase, it will become harder for public health laboratories to detect rare viruses, such as H5N1, the bird flu, Scarpino said.
Bird flu present in California sewage
The bird flu virus has appeared in 17 wastewater systems in California, according to the Centers for Disease Control and Prevention. Positive detections appear primarily in Northern California including in Alameda, San Francisco, Sonoma, Contra Costa and Sacramento. Wastewater surveillance cannot determine the source of the virus, but infections among wild waterfowl can contribute to its presence.
Maurice Pitesky, a researcher at UC Davis who studies bird flu in waterfowl, said it’s rare for the virus to jump from birds to humans, but it has happened before. The virus is endemic among wild birds, Pitesky said, and has also been detected in other mammals in California, including bobcats, skunks and mountain lions.
“As the virus further evolves within a mammalian host — whether it’s dairy cows, or felines, or all the species that it has affected — it will continue to adapt,” Pitesky said. “As it adapts more and more it has more potential to cause even more problems.”
Supported by the California Health Care Foundation (CHCF), which works to ensure that people have access to the care they need, when they need it, at a price they can afford. Visit www.chcf.org to learn more.
Source link
-
News1 week ago
Herbert Smith Freehills to merge with US-based law firm Kramer Levin
-
Technology1 week ago
The next Nintendo Direct is all about Super Nintendo World’s Donkey Kong Country
-
Business7 days ago
Column: OpenAI just scored a huge victory in a copyright case … or did it?
-
Health7 days ago
Bird flu leaves teen in critical condition after country's first reported case
-
Business3 days ago
Column: Molly White's message for journalists going freelance — be ready for the pitfalls
-
World1 week ago
Sarah Palin, NY Times Have Explored Settlement, as Judge Sets Defamation Retrial
-
Politics2 days ago
Trump taps FCC member Brendan Carr to lead agency: 'Warrior for Free Speech'
-
Sports1 week ago
Roki Sasaki’s contract situation, signing process and suitors, explained