Fast food restaurants in California have reportedly cut about 10,000 jobs after the state’s minimum wage increased to $20.
Gov. Gavin Newsom’s (D) law to pay workers $20 an hour goes into effect on April 1 and is clearly dealing a devastating blow to the industry, Fox Business reported. report Wednesday.
The media continues:
The California Business and Industry Alliance (CABIA) said nearly 10,000 fast-food jobs have been cut since Governor Newsom signed California Assembly Bill 1228 last year. To highlight the law’s unintended consequences, the alliance ran mock “obituaries” of popular fast-food brands in Thursday’s state edition of USA Today.
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CABIA’s ads highlight several restaurants that have had to raise prices, lay off employees and in some cases close locations to stay afloat. The ads feature news clips documenting changes made by brands like El Pollo Loco, Subway and Burger King in the state.
“California businesses have been under full attack and assault for years,” Tom Manzo, president and founder of CABIA, told FOX Business. “This is just another law that puts businesses even more at risk.”
To offset wage increases, some restaurant chains, including McDonald’s, Burger King and In-N-Out Burger, have raised their prices. New York Post report On Thursday.
According to Breitbart News, a McDonald’s franchisee in California criticized Governor Newsom’s minimum wage law in March, saying menu items would be “unaffordable” if they were to be made to match the updated wage.
.Chef GruelleIf Democratic Rep. Barbara Lee gets her wish to raise the minimum wage to $50, “it would put every business in California out of business.” https://t.co/Z8St9NoZ91
—Breitbart News (@BreitbartNews) February 16, 2024
In April, the outlet reported an investigation that found fast food prices in California soared in the six months before the state raised its minimum wage to $20.
Meanwhile, Harsh Ghai, another fast-food franchise owner in the state, said he was rushing to install kiosks in his stores to save money after the $20 minimum wage went into effect.
“Guy said he plans to offset the wage increases by cutting employee hours, eliminating overtime, cutting back on new store openings and installing kiosks,” the article said.
