Former Foster’s Freeze deputy general manager Monica Navarro warned on FOX Business Wednesday about the impact the state’s minimum wage increase will have on workers.
Navarro appeared on “The Bottom Line” and discussed how the fast-food chain Foster’s Freeze in Lemoore, Calif., where she worked, announced it would permanently close on April 1st. Although some employees thought the announcement was an April Fool’s joke, Navarro said she found out about the closure through a co-worker of hers who came to work that day.
Navarro told the FOX Business hosts that while California does not require employers to notify employees, it would have been helpful if they had. (Related: California restaurants forced to cut staff as Newsom’s minimum wage hike looms)
“In fact, two of my co-workers were going to work in the morning and right after that we got a call that the store was closing. So they found out right away as they were going to work for the day. ” Navarro said. “I’m shocked. I understand that California is a discretionary state, so they don’t actually require notice, but I wish they would have given me notice so I could go and pick up my application and be prepared. The best thing I can do is honestly give them some references.”
Fox host Dagen McDowell asked Navarro if he had spoken to his manager about the reason for the closure and the April 1 increase in California’s minimum wage for fast food restaurants from $16 to $20.
“From the people I talked to, the employees, they would much rather stay at their previous wages,” Navarro said. “It’s just that there are no jobs right now. And the people in the area around us who are still working for $20 an hour have had their hours drastically reduced. People who work in shifts have drastically reduced their work hours. With fewer people, the job has become even more difficult.”
“I understand the idea that raising the minimum wage will attract more people, but I honestly don’t think it’s going to work. This isn’t the first time stores have closed,” she said. “In my opinion, some local businesses have already closed, and I feel this is just the beginning.”
Restaurants across the Blue State are reportedly preparing to lay off employees in response to the increase, and chains like Pizza Hut and Round Table Pizza are cutting back on deliveries this year, according to the Wall Street Journal. The company has announced that it will cut the number of drivers by 1,280. In addition to price hikes, the state’s rising crime rate has also affected restaurants, with one of the state’s popular chains, In-N-Out, closing its store in Oakland, California.
