Posted on 06/09/2024 6:53:07 PM PDT by SeekAndFind
California fast food restaurants have slashed nearly 10,000 jobs because of the state’s new $20 minimum wage as struggling franchises cut labor costs and raise prices to survive, a major trade group said Thursday.
The California Business and Industrial Alliance (CABIA) slammed Democratic Gov. Gavin Newsom for pushing through the law, which went into effect April 1 – and was blamed for forcing one beloved taco chain to shutter 48 locations in the state last week.
“California businesses have been under total attack and total assault for years,” CABIA president and founder Tom Manzo told Fox Business.
“It’s just another law that puts businesses in further jeopardy.”
Many had to cut employee hours and some have expedited a move to automation.
Manzo said nearly 10,000 jobs have been cut across fast food restaurants since Newsom signed California Assembly Bill 1287 into law last year, adding that officials were living in a “fantasyland” by thinking that drastic wage increases will help workers or businesses.
“You can only raise prices so much,” he said. “And you’re seeing it. People are not going to pay $20 for a Big Mac. It’s not going to happen.” CABIA took out a full-page ad in Thursday’s USA Today that included mock “obituaries” of popular fast food brands.
Rubio’s California Grill, known for its fish tacos, closed 48 of its nearly 134 locations at the end of May – the first major chain to fall victim to the new law. The San Diego-based company cited the “rising cost of doing business” in the state for the closures. The chain filed for bankruptcy on Wednesday.
(Excerpt) Read more at msn.com ...
This can’t be true. Just today I read an article claiming we were teaching Econ101 all wrong. https://aeon.co/essays/what-should-econ-101-courses-teach-students-today?utm_source=pocket-newtab-en-us
The opening paragraphs -
“What happens to the job market when the government raises the minimum wage? . . . Therefore, if the price of labour rises, businesses will choose to ‘buy’ less of it – meaning they’ll hire fewer people. Students learn that a higher minimum wage means fewer jobs.
“The prediction from conventional economic theory is unambiguous,’ Card and Krueger wrote. It was also wrong.”
Hmm, maybe they need to rewrite the article.
THE REAL MINIMUM WAGE IS ZERO.
I smell a Fourteenth Amendment issue.
Gavin doesn’t give an F. I have friends who have daily contact with the guy and they said he is a horrible human being. He only cares about himself.
And that fewer jobs that do manage to remain are that much more demanding of the employees.
I am glad to hear that 10,000 people no longer have to suffer at low wage jobs.
Didn’t he exempt the minimum wage workers at his favorite restaurant like “French Laundry?”
Yes, but admit it: his hair is fab-U-luss, definitely presidential material.
I am glad to hear that 10,000 people no longer have to suffer at low wage jobs.
So right. I’m very happy for those folks too. As if the hand of oppression has been lifted.
What a surprise. Supply and demand, and the impact of artificial increases are immutable economic laws. Who knew?
I’d be surprised if it’s just 10,000, as the article claims. The drop in demand alone is probably high enough to cause more layoffs than that. I don’t have any direct evidence of this but it only makes sense. There were a lot of independent Mom and Pop fast food joints in Los Angeles, when I lived there in the early 90’s. I imagine they’re faring a little better then the franchises, as many of them are likely paying lower wages, under the table.
He’s part of the Nazi Pelosi clan of clowns so that makes sense.
But the CA legislature is just as involved in CA’s destruction.
All other wages are based on that minimum wage. That has an effect on pay rates in general. Labor costs are increased, proportionally, across the board, not just for food service workers. The guy or gal working for McDonalds are not the only ones who are going to lose a job; or not be hired in the first place! This is impoverishment in the guise of “social justice!”
Spoken like a true antibusiness nitwit.
IT IS NOT FOR YOU OR THE GOVERNMENT TO DECIDE
The rumor of McDonald’s leaving California may not be so far-fetched after all. If McDonald’s leaves, the other fast food places will quickly follow, and Starbucks may just do the same.
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