California Restaurants Gearing Up for More Price Hikes Over New Law

By Bo Beard | May 8, 2024

The new law

In California, menu prices are set to increase once more due to a new law coming into effect during the summer. This comes as a double blow for fast-food chains in the state, who had already raised prices to accommodate the $20 minimum wage mandated by the state last month. 
 

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The new law, signed by Governor Gavin Newsom, prohibits "junk fees" in the state starting July 1, forcing restaurant owners to raise prices as it bans restaurant surcharges and fees. 
 

Surcharges

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Previously, restaurant owners used surcharges to provide benefits like health care to employees, sometimes making them optional for customers.