Franchisees and fast-food restaurant owners are scrambling to adjust to California’s $20-an-hour minimum wage rule, an increase of $4 per hour. Many are opting to cut hours to make up the difference.
Governor Newsom’s Rationale for the Wage Increase
California Governor Gavin Newsom pushed for the increase to offer workers a living wage. “We are a state that gives a damn about fast food workers — who are predominantly women — working two and a half jobs to get by,” said Newsom.
Economic Impacts of Policy Shifts
Every policy shift, especially those involving prices and wages, impacts several other facets of the economy, some in positive and some in negative ways.
Franchisee Lawrence Cheng’s Adjustments
One franchisee, Lawrence Cheng, whose family owns seven Wendy’s fast food restaurants in southern California, now schedules seven employees per shift instead of the twelve he used to employ for the same pay period.
Increase in Labor Costs
Cheng and other chain owners pointed out the sharp increase in labor costs for fast food workers from $16 to $20 per hour on April 1.
Cheng’s Personal Involvement in Operations
Cheng serves customers and cooks fries and nuggets at some of his locations. He said, “We kind of just cut where we can. I schedule one less person, and then I come in for the time I didn’t schedule, and I work that hour.”
Evaluating Economic Impacts
Economists are evaluating the overall financial impacts of this dramatic increase in the minimum wage on businesses and the local and national economies.
Uncertain Long-Term Effects
Experts say it is too soon to tell the new law’s impact. They will monitor whether the wage hike results in layoffs or restaurant closures.
Research Findings on Minimum Wage Increases
A 2024 study from the University of California, Berkeley, examined the impact of nearly doubling the federal minimum wage from $7.25 to $15 per hour in California and New York. The research showed that the increase did not necessarily lead to layoffs.
Employment Trends in the Fast Food Industry
According to the findings of the Berkeley study, the fast food industry in California has continued to increase its employment opportunities. In April and May 2024, after the law went into effect on April 1, the industry gained 8,000 jobs more than the sector gained in 2023 over the same period, according to the U.S. Bureau of Labor Statistics.
Benefits of Higher Wages
A chief advocate for the wage hike, Service Employees International Union’s vice president Joseph Bryant, stated that “multiple franchisees have also noted that the higher wage is already attracting better job candidates, thus reducing turnover.”
Business Owners’ Strategies to Cope
Many business owners and operators report raising prices to pass the increased costs along to the customers and cutting employee hours to make up the difference. Cheng reports increasing menu prices up to eight percent in January to prepare for the wage hike.
Juancarlos Chacon’s Experience
Juancarlos Chacon, who owns nine Jersey Mike’s in Los Angeles, said, “I’ve been in the business for 25 years [involved with] two different brands, and I never had to increase the amount of pricing that I did this past time in April.”
Changes in Customer Behavior
For example, Chacon reports that a sub sandwich at his franchise now tops $10. In contrast to the past, customers who come to the restaurant do not buy sides such as drinks, chips, and desserts.
Staff Reductions and Focused Hours
Chacon has also adapted by reducing staff during the less busy breakfast and dinner hours, focusing instead on more robust staffing for the lunchtime crowd at his sandwich shops. His part-time employees have been reduced overall from 165 to 145. For Chacon’s business model, 35 percent of his business costs are labor.
Deference to op, some fantastic selective information.
Wow, marvelous weblog layout! How lengthy have you been blogging for? you made running a blog look easy. The total glance of your web site is magnificent, let alone the content!
obviously like your website but you need to check the spelling on quite a few of your posts. Many of them are rife with spelling issues and I find it very bothersome to tell the truth nevertheless I will surely come back again.
Can I just say what a relief to find someone who actually knows what theyre talking about on the internet. You definitely know how to bring an issue to light and make it important. More people need to read this and understand this side of the story. I cant believe youre not more popular because you definitely have the gift.
Can I just say what a reduction to search out somebody who really knows what theyre speaking about on the internet. You positively know the way to bring a difficulty to gentle and make it important. More folks need to read this and perceive this facet of the story. I cant imagine youre not more standard since you definitely have the gift.
Your style is so unique compared to many other people. Thank you for publishing when you have the opportunity,Guess I will just make this bookmarked.
Once I initially commented I clicked the -Notify me when new comments are added- checkbox and now each time a remark is added I get 4 emails with the same comment. Is there any approach you may take away me from that service? Thanks!
Heya just wanted to give you a quick heads up and let you know a few of the images aren’t loading properly. I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same outcome.
Thanks for this post, I am a big big fan of this internet site would like to proceed updated.
I do trust all the ideas you have introduced for your post. They are really convincing and will definitely work. Nonetheless, the posts are very short for newbies. May you please extend them a bit from subsequent time? Thanks for the post.
There is noticeably a bundle to learn about this. I assume you made sure nice points in options also.
As a Newbie, I am continuously exploring online for articles that can benefit me. Thank you
This web site is really a walk-through for all of the info you wanted about this and didn’t know who to ask. Glimpse here, and you’ll definitely discover it.
You could definitely see your expertise in the work you write. The arena hopes for more passionate writers such as you who aren’t afraid to mention how they believe. Always go after your heart.
Whats up this is kinda of off topic but I was wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding knowledge so I wanted to get advice from someone with experience. Any help would be enormously appreciated!
Hello! Quick question that’s completely off topic. Do you know how to make your site mobile friendly? My site looks weird when browsing from my iphone. I’m trying to find a theme or plugin that might be able to correct this problem. If you have any recommendations, please share. Many thanks!
Greetings! I’ve been following your website for a while now and finally got the courage to go ahead and give you a shout out from Dallas Tx! Just wanted to say keep up the fantastic work!
you have a great blog here! would you like to make some invite posts on my blog?
Super-Duper blog! I am loving it!! Will come back again. I am bookmarking your feeds also
Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me. Anyways, I’m definitely happy I found it and I’ll be book-marking and checking back frequently!
Excellent site. A lot of helpful info here. I am sending it to a few friends ans also sharing in delicious. And obviously, thank you to your sweat!
A powerful share, I just given this onto a colleague who was doing a bit of analysis on this. And he actually bought me breakfast because I found it for him.. smile. So let me reword that: Thnx for the deal with! But yeah Thnkx for spending the time to debate this, I feel strongly about it and love studying extra on this topic. If attainable, as you change into expertise, would you thoughts updating your weblog with extra particulars? It’s highly helpful for me. Huge thumb up for this blog submit!
There may be noticeably a bundle to find out about this. I assume you made sure good factors in options also.
I love your writing style really enjoying this web site.
Simply wanna comment that you have a very nice site, I like the style it actually stands out.
excellent points altogether, you simply gained a brand new reader. What would you recommend about your post that you made a few days ago? Any positive?
I am extremely impressed with your writing skills as well as with the layout on your weblog. Is this a paid theme or did you customize it yourself? Anyway keep up the excellent quality writing, it is rare to see a nice blog like this one nowadays..
Your house is valueble for me. Thanks!…
hi!,I like your writing very much! share we communicate more about your post on AOL? I require a specialist on this area to solve my problem. Maybe that’s you! Looking forward to see you.
I have read several good stuff here. Definitely worth bookmarking for revisiting. I wonder how much effort you put to create such a excellent informative site.
You completed certain nice points there. I did a search on the subject matter and found mainly folks will have the same opinion with your blog.
Hi there, You have performed an incredible job. I’ll definitely digg it and for my part suggest to my friends. I am confident they’ll be benefited from this website.
I enjoy the efforts you have put in this, appreciate it for all the great articles.
whoah this blog is excellent i love reading your articles. Keep up the good work! You know, many people are searching around for this info, you can aid them greatly.
Nice post. I was checking constantly this weblog and I’m inspired! Very useful information particularly the closing phase 🙂 I deal with such information a lot. I used to be looking for this particular info for a long time. Thank you and good luck.
I want to get across my admiration for your kindness in support of visitors who really want assistance with the idea. Your special dedication to passing the message around ended up being extraordinarily valuable and have without exception permitted some individuals just like me to get to their pursuits. This warm and friendly instruction indicates a great deal a person like me and further more to my office workers. Thanks a ton; from everyone of us.
I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post…
I have been checking out a few of your posts and it’s pretty clever stuff. I will surely bookmark your blog.
My spouse and i have been satisfied Emmanuel could round up his preliminary research using the ideas he was given when using the web pages. It’s not at all simplistic to simply choose to be making a gift of tips and hints that some other people might have been making money from. And we also see we need the website owner to give thanks to because of that. These explanations you’ve made, the straightforward website menu, the relationships you can help promote – it is most exceptional, and it is making our son in addition to us consider that that idea is pleasurable, which is especially vital. Many thanks for the whole thing!
Throughout the awesome design of things you get an A+ just for effort and hard work. Where exactly you misplaced me personally was on the particulars. You know, it is said, the devil is in the details… And it couldn’t be more correct here. Having said that, let me inform you just what did work. The article (parts of it) can be highly engaging and that is probably the reason why I am taking an effort to comment. I do not really make it a regular habit of doing that. Secondly, despite the fact that I can certainly see a jumps in reason you come up with, I am not necessarily convinced of how you seem to connect the details that produce the final result. For right now I will, no doubt yield to your issue but trust in the foreseeable future you actually link your dots much better.
Hi , I do believe this is an excellent blog. I stumbled upon it on Yahoo , i will come back once again. Money and freedom is the best way to change, may you be rich and help other people.
It is the best time to make some plans for the longer term and it’s time to be happy. I have learn this put up and if I could I wish to counsel you some fascinating things or suggestions. Maybe you can write subsequent articles relating to this article. I wish to read more issues about it!
Just wanna comment that you have a very decent website , I love the style it really stands out.
Somebody necessarily lend a hand to make seriously posts I might state. That is the very first time I frequented your website page and to this point? I amazed with the research you made to make this particular publish extraordinary. Great task!
Hi there! This is kind of off topic but I need some guidance from an established blog. Is it tough to set up your own blog? I’m not very techincal but I can figure things out pretty quick. I’m thinking about making my own but I’m not sure where to start. Do you have any tips or suggestions? Thanks
As I site possessor I believe the content material here is rattling wonderful , appreciate it for your efforts. You should keep it up forever! Best of luck.
Some truly nice stuff on this site, I enjoy it.
I am always browsing online for ideas that can facilitate me. Thank you!
Hello, I think your blog might be having browser compatibility issues. When I look at your blog site in Ie, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, great blog!
I do agree with all the concepts you have introduced for your post. They are really convincing and can definitely work. Still, the posts are too short for newbies. Could you please lengthen them a little from next time? Thank you for the post.
I think this web site contains some very wonderful information for everyone. “The penalty of success is to be bored by the attentions of people who formerly snubbed you.” by Mary Wilson Little.
Absolutely written subject material, thankyou for information .
Some really nice stuff on this site, I love it.
This is really interesting, You’re a very skilled blogger. I’ve joined your feed and look forward to seeking more of your magnificent post. Also, I have shared your site in my social networks!
Simply wanna comment that you have a very decent web site, I enjoy the design it actually stands out.
There are some fascinating closing dates on this article however I don’t know if I see all of them heart to heart. There’s some validity however I’ll take hold opinion until I look into it further. Good article , thanks and we want more! Added to FeedBurner as well
Can I just say what a reduction to find somebody who truly is aware of what theyre speaking about on the internet. You positively know find out how to carry a difficulty to light and make it important. More people must read this and perceive this facet of the story. I cant believe youre no more popular because you positively have the gift.
Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. It extremely helps make reading your blog significantly easier.
You really make it seem really easy together with your presentation but I in finding this topic to be really one thing that I think I would never understand. It sort of feels too complex and very vast for me. I’m taking a look forward on your subsequent submit, I’ll try to get the dangle of it!
I want reading and I think this website got some truly utilitarian stuff on it! .
It’s actually a nice and useful piece of info. I am satisfied that you simply shared this helpful information with us. Please stay us informed like this. Thanks for sharing.
I would like to thnkx for the efforts you have put in writing this blog. I am hoping the same high-grade blog post from you in the upcoming as well. In fact your creative writing abilities has inspired me to get my own blog now. Really the blogging is spreading its wings quickly. Your write up is a good example of it.
Howdy just wanted to give you a quick heads up and let you know a few of the pictures aren’t loading correctly. I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same results.
I like this blog so much, saved to fav.
Thank you for sharing excellent informations. Your site is so cool. I’m impressed by the details that you’ve on this blog. It reveals how nicely you perceive this subject. Bookmarked this web page, will come back for extra articles. You, my friend, ROCK! I found simply the info I already searched everywhere and simply couldn’t come across. What a perfect website.
Thank you, I have just been searching for information approximately this subject for ages and yours is the best I have came upon so far. But, what in regards to the conclusion? Are you positive concerning the supply?
I love it when people come together and share opinions, great blog, keep it up.
Great article and straight to the point. I don’t know if this is actually the best place to ask but do you guys have any ideea where to get some professional writers? Thanks 🙂
Have you ever thought about creating an e-book or guest authoring on other websites? I have a blog based upon on the same ideas you discuss and would love to have you share some stories/information. I know my readers would appreciate your work. If you’re even remotely interested, feel free to shoot me an e-mail.
I have been reading out some of your posts and i can claim pretty clever stuff. I will surely bookmark your blog.
I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post…
I gotta bookmark this website it seems very helpful handy
I’m curious to find out what blog system you’re working with? I’m experiencing some minor security issues with my latest blog and I’d like to find something more secure. Do you have any solutions?
I really like your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do it for you? Plz respond as I’m looking to create my own blog and would like to know where u got this from. kudos
Hi, i think that i saw you visited my website thus i came to “return the favor”.I’m trying to find things to enhance my website!I suppose its ok to use a few of your ideas!!
I’m curious to find out what blog platform you’re working with? I’m having some minor security issues with my latest blog and I’d like to find something more safe. Do you have any solutions?
It’s the best time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I want to suggest you some interesting things or advice. Perhaps you can write next articles referring to this article. I want to read even more things about it!
You are my inspiration , I have few blogs and rarely run out from to post .
This is very interesting, You’re a very skilled blogger. I have joined your rss feed and look forward to seeking more of your magnificent post. Also, I have shared your site in my social networks!
very nice put up, i actually love this website, carry on it
This site is my intake, rattling superb layout and perfect content.
I have been absent for a while, but now I remember why I used to love this web site. Thank you, I’ll try and check back more often. How frequently you update your web site?
Woh I enjoy your articles, saved to my bookmarks! .
You really make it seem really easy along with your presentation but I find this topic to be actually something that I feel I would by no means understand. It sort of feels too complicated and extremely vast for me. I am having a look ahead to your subsequent submit, I’ll try to get the cling of it!
I like this post, enjoyed this one thanks for posting.
Hello my friend! I wish to say that this article is amazing, nice written and include approximately all vital infos. I’d like to see more posts like this.
Wow! This can be one particular of the most helpful blogs We have ever arrive across on this subject. Basically Excellent. I’m also a specialist in this topic so I can understand your hard work.
I am glad to be a visitant of this unadulterated website! , thankyou for this rare information! .
Hello! Someone in my Facebook group shared this website with us so I came to take a look. I’m definitely enjoying the information. I’m bookmarking and will be tweeting this to my followers! Wonderful blog and outstanding design.
This design is incredible! You certainly know how to keep a reader amused. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Great job. I really enjoyed what you had to say, and more than that, how you presented it. Too cool!
I in addition to my guys have already been reading the best guidelines on your web page and then then came up with a horrible suspicion I had not expressed respect to the blog owner for those secrets. Most of the young men are already certainly joyful to read them and have now sincerely been enjoying these things. I appreciate you for indeed being so accommodating and for deciding upon this sort of really good guides most people are really desperate to know about. My personal honest apologies for not saying thanks to sooner.
A lot of whatever you claim is supprisingly legitimate and it makes me wonder the reason why I hadn’t looked at this with this light before. Your piece really did switch the light on for me personally as far as this specific subject goes. But at this time there is actually one particular point I am not too cozy with and while I make an effort to reconcile that with the actual core idea of your point, let me see what all the rest of your subscribers have to say.Well done.
Your place is valueble for me. Thanks!…
A lot of the things you assert is supprisingly precise and it makes me wonder why I hadn’t looked at this in this light previously. This particular piece really did switch the light on for me personally as far as this particular subject matter goes. Nevertheless at this time there is actually one particular factor I am not really too cozy with so while I attempt to reconcile that with the central idea of the issue, permit me see exactly what all the rest of the visitors have to point out.Nicely done.
Your place is valueble for me. Thanks!…
Everything is very open and very clear explanation of issues. was truly information. Your website is very useful. Thanks for sharing.
Very interesting points you have remarked, thankyou for posting. “I never said most of the things I said.” by Lawrence Peter Berra.
I consider something genuinely special in this web site.
I’m now not positive where you’re getting your information, however great topic. I needs to spend a while finding out more or figuring out more. Thank you for magnificent information I used to be on the lookout for this info for my mission.
I regard something really special in this website .
I was looking through some of your content on this website and I conceive this website is really instructive! Keep posting.
I feel that is one of the such a lot vital info for me. And i’m satisfied reading your article. However wanna statement on some common things, The site taste is great, the articles is truly nice :D. Excellent process, cheers
Thank you for sharing superb informations. Your site is very cool. I’m impressed by the details that you have on this blog. It reveals how nicely you perceive this subject. Bookmarked this web page, will come back for extra articles. You, my friend, ROCK! I found simply the info I already searched everywhere and simply could not come across. What a great site.
I have learn a few good stuff here. Certainly value bookmarking for revisiting. I wonder how much effort you set to make such a excellent informative web site.
Nice post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a little something from their store. I’d prefer to use some with the content on my blog whether you don’t mind. Natually I’ll give you a link on your web blog. Thanks for sharing.
It’s onerous to search out knowledgeable individuals on this topic, but you sound like you understand what you’re talking about! Thanks
Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your weblog? My blog site is in the very same area of interest as yours and my users would truly benefit from some of the information you provide here. Please let me know if this ok with you. Cheers!
Enjoyed looking through this, very good stuff, thankyou.
I am always thought about this, thankyou for posting.
Very interesting information!Perfect just what I was looking for! “I live in company with a body, a silent companion, exacting and eternal.” by Eugene Delacroix.
you’re really a good webmaster. The website loading speed is incredible. It seems that you are doing any unique trick. Also, The contents are masterwork. you have done a fantastic job on this topic!