Prices at the Golden Arches and other chains are too rich these days.

A new survey finding nearly 80 percent of Americans now view fast food as a luxury amid sky-high inflation, McDonald's in particular under the microscope for their price hikes over the years, McDonald's president admitting that Big Mac prices have surged more than 20 percent since 2019.

But the fast food giant is also trying to entice Americans back to their restaurants, gearing up for a month-long special offering, some menu items for $5.

Many franchisees are not loving it, arguing the deal cuts into already thin margins.

Stores in California, for example, getting hit particularly hard with the state's fast food minimum wage increase now in its second month.

Joining me right now is one of them, McDonald's franchisee owner Scott Roderick is with us.

He owns and operates 18 franchises in Northern California.

Scott, great to have you this weekend.

Thanks so much for joining us.

Thank you so much.

How's business?

And give us a sense of the impact of inflation.

Well, Maria, inflation has had a devastating effect on Californians.

Its impact can be felt on both sides of my front counter.

Obviously, from the consumer standpoint in California, they see inflation happening at the gas pump, with groceries, rent, utilities, getting insurance, and of course, even dining out.

And on my side of the front counter, the extraordinary $20 wage increase in April of this year is the biggest inflation driver of them all.

And of course, there are halo effects on that, including the payroll tax implications and workman's compensation taxes.

And the impact of inflation in my restaurant business is not just the 25 percent wage increase.

There's a steep trend line up for all of my backdoor food and paper costs.

Access to capital is a challenge.

The cost of capital, you mentioned in the last segment about the 11 rate hikes that the Fed has executed well.

At one point, you could borrow money to start or grow your business at 3 or 4 percent.

Now franchisees are looking at 8, 9, 10 percent to grow their business.

So when you add that on top of the relentless drumbeat of government regulation that chokes the oxygen out of small business, we've got a problem in the state of California.

So what are you doing about it, Scott?

Have you been forced to raise prices?

How do you square that circle?

Well, in terms of raising prices, you know, walking through this inflation minefield has to be done gingerly.

I can't charge $25 for a happy meal.

I have to be thoughtful about my approach.

And you mentioned the national $5 meal deal offer, which is being launched next month nationally at McDonald's.

That's going to jumpstart a summer value campaign.

My restaurants have always been a leader in providing value for our customers.

It's part of my franchised DNA for 70 years.

I've been in this business for 30.

My family's been in this McDonald's business for 50 years, if you can believe it.

Obviously, the sustainability of this $5 campaign is all about driving incremental visits versus tradeoff, essentially growing the baseline and winning market share, which is critical to surviving that 25% overnight increase in the California minimum wage.

And so if you're looking at, you know, what's driving inflation on my side of the counter, of course, it is the cost of labor, the cost of entry level labor.

We're in the people business.

We just so happen to sell hamburgers.

And so the idea of cutting hours, cutting shifts, that for my business is not sustainable.

People are my greatest asset in my company.

So I'm looking at trying to identify other costs to survive this unprecedented legislation.

Unbelievable.

Scott, great to have you.

Thanks very much.

We'll be watching.

Thank you, Maria.