On September 28 of this year, a bill was signed into law that raised the minimum wage for fast food workers to $20 per hour — an agreement that goes into full effect in April of 2024. It ended a months-long dispute over the future of fast food wages, resulting in a compromise whereby a nine-person council has the power to set the pay floor at McDonald’s through 2029.
Interestingly, in the long term, the fast food chain appears to believe the increase in both wages and prices could benefit the company: on a conference call, CEO Chris Kempczinski said, “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.” He may be right; as the most profitable fast food chain in America, McDonald’s may indeed be able to withstand the wage hikes more easily than its competitors.