California McDonald's Franchisees Raise Prices to Cope with Higher Minimum Wage

A McDonald's franchisee in California has raised prices 5-7% but says there's a limit - "I can't charge $20 for a Happy Meal."

The new $20 minimum wage for fast-food workers took effect in California this week.

Franchisees are evaluating measures like raising prices, cutting labor costs, expanding delivery, and postponing investments.

The franchisee emphasizes he and others are small business owners needing to make "harder choices."

Fast-food workers argue they deserve higher wages as "engines of a billion-dollar industry" though some struggle with bills.