Two massive fast food chains will increase their menu prices in California

McDonald’s and Chipotle, 2 of the biggest fast food chains in the country, are going to increase their menu prices in California starting next year. The reason for this is the workers in both of the chains are going to start making up to $20 dollars an hour, which was decided as a compromise between the restaurants and labor groups. Mcdonald’s does not know how much it will increase its prices yet, while Chipotle says it will be a mid to high single digit percentage increase. These price increases aren’t anything new to consumers, as they have been getting used to these increases over the last 2 years, mainly due to ingredient and labor cost increases. 

End of Article Quiz:

If you get all of the questions correct, or close to correct, it means you understood the article. (Answer key below)

1. Which 2 fast food chains are increasing their prices?
2. Why are they increasing the prices?
3. What are they increasing the wages to?
4. Why have price increases in restaurants occurred a lot over the last 2 years? 

Source: https://www.cnbc.com/2023/10/30/mcdonalds-chipotle-to-raise-california-menu-prices-as-fast-food-wages-rise.html 

Answer Key:

1. McDonald’s and Chipotle
2. They are increasing the prices due to a compromise to increase labor wages between themselves and the labor unions. 
3. $20 dollars an hour
4. They have happened a lot over the last 2 years due to rising ingredient and labor costs.