Price of Big Macs Could Go Up to $15

As half the states in the country raise their hourly minimum wage, American fast-food staples like the McDonald’s Big Mac could soar to $15, predicts an economic analyst.

Companies are “either gonna have to raise prices, start to reduce those labor costs, or a combination of both,” says Brandon Arnold, EVP at National Taxpayers Union, a fiscally conservative think tank, the New York Post reports.

“That’s not fair to those employees that are getting laid off — nor is it fair to the customers that are all of a sudden paying $12, $15 for a Big Mac,” Arnold says.

“As [employers] start to see these labor costs increase, they may not lay people off immediately,” believes the analyst. “But when times get tough, they’re gonna have to make changes.”

Pizza Hut announced last week it will lay off more than 1,200 delivery drivers in California due to the state’s higher minimum wage law, which goes into effect in April.

McDonald’s and Chipotle have both announced they will raise their menu prices in California due to the higher wages.

Rather than lose a job and stand on the unemployment line, Arnold believes, most fast-food workers would accept an hourly wage of $8-$10 an hour.

In an open letter, McDonald’s USA President Joe Erlinger fired away, “California keeps looking for ways to raise prices, drive away more businesses and destroy growth through bad policy and bad politics.”

Twenty-five states and Washington, D.C., have passed legislation to raise minimum wages, with the higher payouts taking effect in 22 of those states on Monday. Nevada’s and Oregon’s wage hikes will go into effect on July 1, while Florida’s will start on Sept. 30.