California restaurant owners say they will be forced to raise menu prices even higher after a new law that bans fees and surcharges goes into effect in July.
Menu prices in California will rise once again when a new law goes into effect in the summer, a double-whammy after fast-food chains in the state hiked prices to help pay for the $20 minimum wage the state imposed last month. Restaurant owners in the state are warning that a new law signed by Gov. Gavin Newsom that bans "junk fees" in the state starting July 1 will force them to raise prices because it prohibits restaurant surcharges and fees.
Golden Gate Restaurant Association Director Laurie Thomas told CBS News Bay Area the law will put restaurants in a tough spot with either lower wages for employees or by discouraging customers with higher prices.
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