A $25 McDonald’s lunch package that comes with two big fries and a 40-piece Chicken McNugget—without drinks—has sparked an intense online discussion on the effect of California’s higher minimum wage on fast-food prices. A TikTok video uploaded by user @shannon_montipaya ignited the conversation when it rapidly gained over 2 million views.
In the video, the TikTok user highlights how surprised she is by the cost of the meal package while in a drive-thru in Southern California. She also points out that the offer is advertised as being for four people, but it doesn’t include a drink. The aforementioned instance highlights the general upward trend in fast-food costs. According to a FinanceBuzz analysis, McDonald’s prices have doubled since 2014. Ten years ago, the average cost of a 10-piece McDonald’s meal was $5.99; now, it is $10.99.
Social media users are feeling nostalgic for a period when McDonald’s meals were much less expensive due to the price increase. Some are remembering bargains like 40-piece nuggets for $5 and big beverages for $1. After that, the conversation shifted to California’s recent law, which increased the minimum wage for fast food employees from $16 to $20 per hour and sparked rumors about its possible connection to the state’s fast food industry’s rising prices.
As a comparison, commenters from other states provided the prices they pay at their local McDonald’s, pointing out that prices are far cheaper outside of California. An example would be a Florida resident mentioning a $15 offer for fifty nuggets, and a Texan highlighting a $6.19 20-piece nugget lunch in Dallas that included two big fries.
Some social media users suggested that the response could be overdone, arguing that the price, given that it feeds four, constitutes a decent bargain. Still, fast-food chains in California had expected the minimum wage raise, which went into effect on April 1—four days after the video was uploaded. For instance, MOD Pizza announced layoffs in recent months and shuttered at least five of its outlets in the state prior to the pay increase.
The discussion gone viral highlights the intricate relationship that exists between wage rules, company operating expenses, and the final effect on consumer prices—especially in industries like fast food where profit margins are often narrow. We’ve reached out to McDonald’s for their thoughts on the subject, emphasizing the general curiosity in how companies are adapting to the current economic climate in California.