A new law that requires California fast food restaurants to pay a $20 minimum wage has forced nearly every restaurant to raise prices and a large majority have cut employee hours, a survey finds.
The Employment Policies Institute says 67% of restaurants surveyed say the wage law that went into effect on April 1 will cost at least $100,000 per location. One in four say it will cost more than $200,000.
The online survey included 182 restaurant owners.
93% of restaurants say they will have to raise prices further in the coming year and 73% say prices will "significantly increase."
Nearly every respondent expects the rising menu prices to cut the number of diners with 58% expecting a "significant decrease" in customers.
The survey found that nearly 1 in 10 restaurants have closed due to the new wage law.
State legislators passed the law last year, in what proponents called a bid to bring greater financial security to hundreds of thousands of people who work in the fast food industry, but detractors warned about higher prices and slowed job growth.
The increase set the minimum wage for fast food workers above the overall state minimum wage of $16 for other industries.
22 states raised minimum wages this year but California's $20 for fast food workers is highest in the country.
