**In Case You Missed It**
For Immediate Release: November 25, 2025
Contact: Molly Weedn, molly@weednpa.com
California Food Prices Have Surged Since the State’s $20 Minimum Wage for Fast Food Workers Took Effect
Sacramento, CA – A recent study from NetCredit found that California is the most expensive state for takeout in the nation, with fast food prices climbing faster than anywhere else in the country.
According to the report, California’s fast food prices are more than 20% above the national average, up from 11.75% in 2023 (the year before the state implemented the fast food wage increase). Notably, six of the top ten most expensive cities for takeout across the country were in California, including: Los Angeles, San Jose, Sacramento, San Francisco, Fresno and San Diego.
The findings come after the 2024 implementation of AB 1228, which singled out local restaurants with a $20 minimum wage—nearly a 25% increase over the statewide minimum wage for other businesses. The effects of the law have been widespread, with significant increases in food costs that have strained consumers and small business owners alike.
In a survey of local restaurant owners impacted by the $20 minimum wage, 98% said they have already had to raise food prices. In addition to rising food prices, the law has had widespread economic impacts throughout California, including:
- 32,525 Jobs Lost: New seasonally-adjusted data from the U.S. Bureau of Labor Statistics’ Current Employment Statistics (CES), September 2025, shows California lost 32,525 fast food jobs since AB 1228 was signed into law in September 2023.
- Reduced Employee Hours: According to the U.S. Census Bureau and Bureau of Labor Statistics’ Current Population Survey – Outgoing Rotation Group (CPS-ORG), non-tipped restaurant workers in California lost a median of 5 hours per week after AB 1228 took effect—equivalent to nearly seven weeks or two months of work per year.
- A survey of local restaurant owners confirms this data: Nearly 90% of local restaurant owners impacted by the $20/hour minimum wage reported reducing employee hours to offset rising costs, with 87% planning additional cuts over the next year.
These findings underscore the ripple effects of California’s $20 minimum wage law—fewer jobs, shorter hours and higher prices for working families across the state.
###
Learn more at SaveLocalRestaurantsCA.com