Franchisee concerns

What is the new minimum wage for fast-food workers in California?

• $15 an hour

• $20 an hour

• $18 an hour

• $22 an hour

By what percentage did a McDonald's franchisee increase prices at his restaurants?

• 8% to 10%

• 5% to 7%

• 2% to 4%

• 3% to 5%

What is one of the cost-cutting measures being considered by the franchisee?

• Increasing employee benefits

• Delaying remodels of dining rooms

• Expanding the menu

• Reducing food quality

How long has Scott Rodrick been a McDonald's franchisee?

• 35 years

• 20 years

• 25 years

• 30 years

What is the general minimum wage in California, according to the article?

• $15 an hour

• $20 an hour

• $16 an hour

• $18 an hour

What did the franchisee say about customers' acceptance of price increases?

• It is decreasing

• It is highly elastic

• It is not unlimited

• It is unlimited

What other type of restaurants might diners go to instead of fast-food chains due to price increases?

• Home cooking

• Street food vendors

• Casual dining chains like Chili's and Applebee's

• Fine dining

What is the franchisee's strategy for increasing prices?

• Only during holiday seasons

• In short steps over a longer period of time

• Dramatically overnight

• Once a year in a large increment

What has caused restaurant operating costs to skyrocket?

• Decreased customer demand

• Pandemic

• Lower food costs

• Decrease in minimum wage

What does the franchisee compare his situation to, in terms of cost pressures?

• A walk in the park

• A double-barrel shotgun

• A piece of cake

• A smooth ride