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California fast food workers stunned as restaurant closes without warning over $20 minimum wage: ‘Only the beginning’
New York Post ^ | April 4, 2024 | Kristen Altus

Posted on 04/05/2024 5:19:47 AM PDT by george76

Another California small business and its workers have seemingly suffered at the hands of the state’s newly enacted $20 minimum wage.

...

When making their way to work Monday morning, Navarro and her team learned upon arrival that the restaurant owner had made the decision to close its doors for good.

The owner, Loren Wright, told local Fox affiliate KMPH that this was the “last thing” they wanted to do, but knew by Friday night the business likely wouldn’t be able to absorb the wage hike and didn’t “want to ruin their Easter Sunday.”

The new California statewide legislation went into effect Monday and enforces a $20 minimum wage for restaurants that have at least 60 locations nationwide, except those that make and sell their own bread.

...

“I can see their intentions with increasing the minimum wage, thinking that it will attract more people,” the ex-manager added, “but I honestly don’t think it will work. This is not the first business that’s closing. There’s already a few local businesses for me that are closing, so I feel like this is just only the beginning.”

Speaking on behalf of the now unemployed Fosters Freeze team, Navarro claimed they would have preferred working at a lower hourly rate than being laid off.

“From the people that I spoke to, my employees, we would have rather stayed at the wage that we did have before, just because now we don’t have a job,” Navarro said. “And those who are still working in the areas around us that went up to $20 an hour, they got their hours severely cut. And it’s a lot less people working on shifts. So their jobs got a lot more difficult.”

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections; US: California
KEYWORDS: business; california; lemoore; minimumwage; smallbusiness
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To: RoosterRedux

OLD ACCOUNTING JOKE:

SIR-—YOU ARE RUNNING in the red making buggy whips-—

Boss-—WE can make that up with more volume.....


161 posted on 04/05/2024 8:58:52 AM PDT by ridesthemiles (not giving up on TRUMP---EVER)
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To: GrannyAnn

EVERY UNION CONTRACT IN THE NATION GETS TO RAISE RATES UNDER MINIMUM RATES.


162 posted on 04/05/2024 9:00:17 AM PDT by ridesthemiles (not giving up on TRUMP---EVER)
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To: grobdriver

POLITICIANS DO NOT RISE OFTEN FROM BUSINESS RANKS

THAT IS ANOTHER REASON WE NEED TRUMP


163 posted on 04/05/2024 9:01:04 AM PDT by ridesthemiles (not giving up on TRUMP---EVER)
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To: brownsfan

Find the comments Dukakis made after opening up a business (IIRC—an INN) & how surprised he was at all the costs behind the scenes..


164 posted on 04/05/2024 9:03:10 AM PDT by ridesthemiles (not giving up on TRUMP---EVER)
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To: FoxInSocks

PANERA locations===NEWSOM BUDDY


165 posted on 04/05/2024 9:04:52 AM PDT by ridesthemiles (not giving up on TRUMP---EVER)
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To: central_va

You should try it once and learn for yourself how easy it is.


166 posted on 04/05/2024 9:05:29 AM PDT by dinodino ( Cut it down anyway. )
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To: central_va

Wow. You make a lot of dumb ass comments, but his one is up there.

Look at the replies!

https://freerepublic.com/focus/f-news/4229142/replies?c=9


167 posted on 04/05/2024 9:09:38 AM PDT by Responsibility2nd (A truth that’s told with bad intent, Beats all the lies you can invent ~ Wm. Blake)
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To: george76

You want $20 per hour you have to earn that additional money.


168 posted on 04/05/2024 9:09:50 AM PDT by McGavin999 ( A sense of humor is a sign of intelligence, leftists have no sense of humor, therefore……)
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To: ridesthemiles

And fast food places in parks, auditoriums, etc., but I have yet to see how they justify the exemption. By what pie-in-the-sky can they justify this to a judge when someone sues?


169 posted on 04/05/2024 9:10:55 AM PDT by jeffc (Resident of the free State of Florida)
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To: central_va

I suspect that one reason you do not want to start a small business with employees is that you know how hard it is.

With a little more introspection you will gain some respect for those who do it anyway.


170 posted on 04/05/2024 9:12:45 AM PDT by cgbg ("Our democracy" = Their Kleptocracy)
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To: ridesthemiles

It is a great learning experience to write up a business plan for a small business, get approved for a bank loan and a year later learn that you had underestimated expenses by 20% or so.

;-)


171 posted on 04/05/2024 9:15:28 AM PDT by cgbg ("Our democracy" = Their Kleptocracy)
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To: jeffc

It’s a franchise so it’s a sole owner who pays a fee to the franchiser who has hundreds of places.


172 posted on 04/05/2024 9:27:27 AM PDT by McGavin999 ( A sense of humor is a sign of intelligence, leftists have no sense of humor, therefore……)
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To: Metrobank
The constant raising of minimum wages just pushes more workers into higher tax brackets while the costs of everything goes up.

This is going to lower tax brackets for a bunch of people as well. People that are able to keep their jobs are unlikely to have much upward movement in the tax brackets. Somebody making $40K doesn't have to worry about going into the next tax bracket at the federal level. There could be some modest upward movement with California taxes..

173 posted on 04/05/2024 9:33:27 AM PDT by EVO X ( )
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To: central_va

Basically the market sets the price. If you pay your employees $8 per hour and your competition hires away your trained employees you either raise the wages you pay or your competition will out sell you.

If you have a franchise, your franchise fees remain the same no matter what you pay, your rent remains the same, your utilities remain the same. Sooner or later you raise your prices and the people who used to buy from you 5 days a week can’t afford you so they only come 2 times a week. How do you continue to pay those fixed fees?


174 posted on 04/05/2024 9:48:20 AM PDT by McGavin999 ( A sense of humor is a sign of intelligence, leftists have no sense of humor, therefore……)
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To: PTBAA
A lot of people are going to find out that the real minimum wage is $0 and that if a job costs an employer more than its value, the job disappears.

Those that pass these laws are to ignorant to understand this. (Maybe it is done intentionally )

175 posted on 04/05/2024 10:03:55 AM PDT by Irish Eyes
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To: PTBAA
A lot of people are going to find out that the real minimum wage is $0 and that if a job costs an employer more than its value, the job disappears.<\i>

Those that pass these laws are to ignorant to understand this. (Maybe it is done intentionally )

176 posted on 04/05/2024 10:04:13 AM PDT by Irish Eyes
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To: McGavin999

The basic issue for any small business is can they increase revenue enough to cover increased expenses.

If they cannot they are done.

A one time big wage hit is disastrous.

The total amount customers will spend on eating out is not going to immediately rise.


177 posted on 04/05/2024 10:08:41 AM PDT by cgbg ("Our democracy" = Their Kleptocracy)
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To: COBOL2Java

Gobsmacking liberals - what a surprise!

(The Law of Unintended Consequences ). “Well, that’s not supposed to happen!”


178 posted on 04/05/2024 10:10:12 AM PDT by drSteve78 (Je suis Deplorable. Even more so)
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To: george76

Newton said it: “For every action there’s an equal and opposite reaction.” I guess Democrats don’t believe in Newtonian physics.


179 posted on 04/05/2024 10:19:23 AM PDT by Bernard Marx
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To: central_va

If there is demand for the product he was selling SOMEONE will make will supply it.

Small businesses have a high failure rate in the first five years. Typically the first two years is what it takes to figure out The Business, and the rest of the time how to sell or close before losing everything if not figuring out how to be successful. So you’re right, several cycles make keep a business site “open” but Under New Management.

941 / Unemployment tax closes many businesses., because not enough actual cash flow.


180 posted on 04/05/2024 10:23:32 AM PDT by drSteve78 (Je suis Deplorable. Even more so)
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