Price of a McDonald’s Deal Shocks Customer, Sparks Debate on California’s Minimum Wage Hike

A viral TikTok video capturing a customer's frustration over the price of a $25 deal at a California McDonald's has ignited debate over the state's recent minimum wage increase for fast food workers. Effective April 1, the new law mandates that chains with 60 or more restaurants nationwide must offer workers a starting wage of $20 an hour, up from the previous standard of $16, per USA Today.

In the video, filmed at a Southern California drive-thru, the exasperated customer expresses disbelief at the cost of the "40-piece chicken McNuggets bundle" priced at $25.39 plus sales tax, which she dubs "McFlation." "OK, so it's $25.39 for 40-piece nuggets and two large fries," the customer remarks in the video. "You couldn't even throw in a medium Sprite in there? Holy crap."

The video's comment section has become a platform for many to attribute the menu price increase to California's new wage law. However, McDonald's clarifies that the price featured in the TikTok video exceeds the average cost of the same bundle at Southern California locations. It emphasizes that McDonald's prices may vary by restaurant and are subject to the discretion of local franchisees. User @Monster_bulldogs ridiculed the idea of bargaining at McDonald’s, suggesting, "Get your lazy butt home and cook something." @Bobby McKay challenged the notion of McDonald's prices being unreasonable, stating, "So $12.70 for a 20 piece and a fry, and somehow you want to say that's expensive given how high fast food has been across the US for months now?"

@WiscoGuy commented, "Everyone wanted raises during Covid, prices will always balance out." Meanwhile, @Daniel announced his decision to cut out McDonald's and Starbucks completely. In contrast, @Mat Gilbreath shared a higher price he encountered in Yelm, Wa., mentioning, "Ha I got that beat. It’s $32.49 here in Yelm, Wa." @Joel defended workers' rights, stating, "Don’t blame the workers for getting a liveable wage in California for the food being expensive, it’s McDonald’s trying to keep the same profit margins." @degentleman123 highlighted the benefits of ordering through the app, remarking, "LMAO the fact that you guys eat at McDonalds without ordering through the app where there’s literally a freebie on fries and nuggets every day is wild." @Misss.007 reminisced about lower prices in the past, saying, "Remember when 40 pieces of nuggets were $5 and a large drink was $1."

A Finance Buzz report reveals that McDonald’s menu prices have doubled since 2014 across popular items, outpacing increases at other chains such as Starbucks, Taco Bell, and Wendy's. Between 2014 and 2024, these chains raised prices by 60%, nearly double the national inflation rate. McDonald's, in particular, increased average menu prices more than three times the national rate, according to the report.

Democratic Gov. Gavin Newsom signed Assembly Bill 1228 into law in September 2023, raising the minimum wage and establishing a council to develop regulations for the fast food industry. At a November conference call, McDonald's CEO Chris Kempczinski acknowledged that the company would adjust prices to offset the wage hikes while implementing cost-cutting measures and productivity improvements. "There will certainly be a hit in the short-term to franchisee cash flow in California," Kempczinski stated. "Tough to know exactly what that hit will be because of some of the mitigation efforts. But there will be a hit." Kempczinski's compensation package in 2023 amounted to $19.2 million, marking an 8% increase from the previous year, as reported by Restaurant Business Magazine. The company's fourth-quarter net income in 2023 stood at $2.04 billion, up from $1.9 billion in the preceding year, CNBC reported. Following suit, other chains like Chipotle announced menu price increases shortly after the signing of the California bill.

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