Harsh Ghai, a major fast food franchise in California, is rushing to install kiosks in its restaurants to cut costs as the $20 minimum wage impacts businesses.
Guy owns about 180 fast-food restaurants in the state, including Burger King, Taco Bell and Popeyes, Business Insider report Friday.
“We have kiosks in all of our restaurants,” Guy explained.
The Insider report said, “Some fast food franchisees say salary increases could make it difficult to maintain profits.” Many people are desperately looking for ways to bring in more revenue and reduce costs. ”
Breitbart News reports that a major McDonald’s franchisee in Los Angeles announced in March that Democratic Gov. Gavin Newsom’s (D) minimum wage law would force fast-food companies to raise wages for workers above $20 an hour. criticized.
California Governor Gavin Newsom speaks on stage at Vox Media’s 2022 Code Conference in Beverly Hills, California. (Jerrod Harris/Getty, Vox Media)
Kelly Harper Howie said there are other ways to save money, but ultimately it comes down to “spending less.”[which] It means lower profitability for us, but we absorb it. ”
Meanwhile, Guy said the company is trying to offset the higher wages by reducing employee hours, eliminating overtime, refraining from opening additional stores and refraining from installing kiosks.
“Fast food chains are rapidly adding ordering kiosks in the U.S. to cut labor costs. California’s new $20 wage adds even more urgency,” Insider said. the article said.
Breitbart News reported on April 2 that California’s mandate to pay fast food workers a minimum wage of $20 an hour went into effect on April 1.
The article states, “The new rules raise the minimum wage for workers at large chain restaurants by 25% and create a Fast Food Council with the power to implement further increases of up to 3.5% annually over the next five years.” Ta.
“While some workers will get a raise, others may lose their jobs to automation or downsizing. Raising the minimum wage will reduce the number of jobs that do not generate enough income to support higher wage levels. They tend to displace jobs from the most vulnerable and lowest-skilled workers in the workforce,” he added.
Last week, employees at Foster’s Freeze in California found themselves out of a job after the store closed due to the $20 minimum wage mandate, Breitbart News reported in April. It was reported on the 5th.
