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Trade group says thanks to $20 per hour minimum wage for fast-food workers after law signed by Gavin Newsom, 10,000 jobs have been cut.
Today, the California Business and Industrial Alliance (CABIA) ran a full-page ad in the statewide edition of USA Today showcasing the detrimental impact of California’s recent minimum wage hikes for fast-food restaurants.
The ad lists out the mock “obituaries” of restaurants that have been harmed. It also calls out Governor Newsom for signing California Assembly Bill 1228 into law, which includes a $20 per hour minimum wage for fast-food workers, and establishes a fast-food regulatory council with the authority to raise the industry’s minimum wage annually.
Since AB 1228 was signed into law last September, California fast-food restaurants have cut nearly 10,000 jobs, representing a 1.3 percent change from September 2023. The ad highlights numerous fast-food chains across California that have been forced to raise prices, lay off workers, and shut down stores, creating a wave of concern throughout the Golden State’s business landscape. See the ad here.
Tom Manzo, President and Founder of CABIA, released the following statement:
“Unprecedented wage hikes have unprecedented consequences, especially in California where the odds are already stacked against businesses. The rapid job cuts, rising prices, and business closures are a direct result of Governor Newsom and this short-sighted legislation. California’s business community and its workers deserve better. We need policies that support growth and stability, not ones that jeopardize livelihoods.”
Editors Note – According to the Ad:
- Burger King – slash workers hours + introducing self-service kiosks.
- Bar Moruno – Shuttered noting labor costs used to be below 30%, now inching to 40%
- Cinnabon – questioned whether they will remain in the stated
- El Pollo Loco – working to automate its salsa-making
- Foster Freeze – Restaurants closed
- McDonalds – possible reducing hours, increasing prices
- MOD Pizza – closed 5 locations
- Pizza Hut – laying off delivery drivers
- Round Table Pizza – cut 73 driver jobs, 21% of its workforce
- Rubios – 48 locations closed
- Subway – Shrunk sandwich chains in US by 443 stores
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