Critics of this new minimum wage law have long warned that menu prices would rise as a result of paying more for labor. Now, this survey suggests this warning has occurred.

This law legally requires all fast-food restaurants within the Golden State to pay their employees at least $20 an hour. Only fast-food chains that have more than 60 locations nationwide are affected by this legislation.

The EPI is considered a nonprofit think tank. It is run by a restaurant industry lobbyist who has been against these California minimum wage increases.

According to the survey, 67% of fast-food restaurant operators stated that the wage increase will likely cost their business at least $100,000 per location. Meanwhile, one in four of those surveyed stated it would cost much more, around $200,000 per location.

This study has revealed that many have done exactly this, as 98% of survey participants have claimed that they’ve already raised their menu prices.

About 89% of those surveyed stated that they had cut employee hours. Meanwhile, 73% explained that they had limited pick-up or overtime opportunities for their staff.

This survey saw 70% say that they reduced their staff or otherwise consolidated positions at their establishments.

Prices at fast food eateries were already high, thanks to California’s high cost of living and overall high inflation seen around the country. Now, this issue has only added to high menu prices.

This survey further showed that 92% have claimed that they’re concerned about slower foot traffic being seen at their establishments.

Now, many Americans have stated that fast food is a luxury they can no longer afford.

As a result, about 89% of those surveyed have claimed that they are now less likely to add any new stores in the state, thanks to how costly it has become. Instead, they’ll head elsewhere, to another state, with their business.

According to the governor’s office, data shows that the fast-food industry has added thousands of new jobs from April to June.