{"id":2208256,"date":"2024-03-28T12:22:02","date_gmt":"2024-03-28T16:22:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ca-fast-food-joints-warn-of-price-hikes-ahead-of-new-minimum-wage-definitely-going-to-pass-this-on\/"},"modified":"2024-03-28T12:25:42","modified_gmt":"2024-03-28T16:25:42","slug":"ca-fast-food-joints-warn-of-price-hikes-ahead-of-new-minimum-wage-definitely-going-to-pass-this-on","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ca-fast-food-joints-warn-of-price-hikes-ahead-of-new-minimum-wage-definitely-going-to-pass-this-on\/","title":{"rendered":"Fast-food restaurants in California are advising customers about upcoming price increases due to the new minimum wage laws. &#8220;We will definitely be increasing prices,&#8221; they say"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">52<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fca-fast-food-joints-warn-of-price-hikes-ahead-of-new-minimum-wage-definitely-going-to-pass-this-on%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2208256&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Fast-food businesses in California are issuing \u200balerts to customers regarding upcoming price increases associated with a new minimum wage law in \u2063effect from April 1. The law raises the minimum wage for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-lawmakers-to-consider-bill-to-raise-fast-food-workers-pay-to-20-an-hour\/\" title=\"California lawmakers may raise <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-california-fast-food-restaurants-at-center-of-criminal-threats\/\" title=\"Report: California Fast Food Restaurants at Center of Criminal Threats\">fast-food workers<\/a>&#8216; pay to  per hour.&#8221;>fast \u2062food workers<\/a> to \u200b$20 an hour from\u200d the existing $16, prompting businesses to consider job cuts and price hikes to cover rising expenses. Some may opt for automation \u200bor \u2063leave the state altogether. Fast-food businesses in \u200cCalifornia are informing customers about imminent price \u2062hikes due to a new minimum wage law effective\u200c from April 1. The law elevates the minimum wage for\u200b <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/amazon-wants-15-federal-minimum-wage-reports-small-businesses-would-be-hardest-hit\/\" title=\"Amazon Wants  Federal Minimum Wage; Reports: Small Businesses Would Be Hardest Hit\">fast food workers<\/a> to\u2062 $20 per hour from $16, leading businesses to\u200b contemplate cost-cutting measures like\u2063 job reductions and price increases. Automation adoption and potential relocation out of the state are also being considered by some businesses.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><span style=\"font-weight: 400\">Fast-food restaurateurs in California are warning customers to expect price bumps ahead of a new minimum wage for the industry, which will go into effect on Monday.<\/span><\/p>\n<p><span style=\"font-weight: 400\">California Democratic Governor Gavin Newsom signed a bill in September lifting the minimum wage for fast food workers from the state minimum of $16 an hour to an industry-specific rate of $20 an hour. The bill is set to go into effect on April 1.<\/span><\/p>\n<p><span style=\"font-weight: 400\">With the new wage floor just days away, fast-food businesses are preparing to cut jobs and hike prices to offset the increase in costs.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cIt\u2019s going to be a pretty significant increase to our labor,\u201d Chipotle chief financial officer Jack Hartung said during an earnings call last year, according to the Los Angeles Times. Hartung said that a significant amount of the cost would be passed on to customers in \u201ca mid-to-high single-digit\u201d percentage price increase.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cWe are definitely going to pass this on,\u201d Hartung said.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A Starbucks spokesman said the company would offset the added labor costs \u201cthrough a variety of levers\u2014including near-term pricing as well as other efficiencies.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">In addition to price increases, some employees will be cut to make way for cheaper automated options. Other business owners may quit California entirely.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cWhere they can automate, they will automate more,\u201d said Harry Holzer, Georgetown University professor and former Labor Department chief economist. \u201cMaybe some franchises will move out of state.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">Jamie Bynum, a Dickey\u2019s Barbecue Pit franchisee, said the new law would raise expenses at his southern California location by $3,000 to $4,000 monthly, additional costs he will pass on to customers.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cPeople don\u2019t understand that when wages rise, so do the prices,\u201d Bynum told <\/span><a href=\"https:\/\/www.nytimes.com\/2024\/03\/28\/business\/economy\/fast-food-minimum-wage-california.html\"><span style=\"font-weight: 400\">The New York Times<\/span><\/a><span style=\"font-weight: 400\">. He said that in the past, when he has been forced to raise prices, fewer customers have come to his business, eating away at his earnings and forcing him to make cuts to his workforce.<\/span><\/p>\n<p><b><a href=\"https:\/\/onelink.to\/dwapp\" target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"sk-tooltip-9096\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/onelink.to\/dwapp&#038;source=gmail&#038;ust=1711715436621000&#038;usg=AOvVaw3HlpYohxaUP7Tuuj0jIFHu\">CLICK HERE TO GET THE DAILYWIRE+ APP<\/a><\/b><\/p>\n<p><span style=\"font-weight: 400\">The new law will make California\u2019s minimum wage for fast-food workers the second-highest in the country for minimum wage workers. The only other place with a higher floor is a small city outside Seattle, where the minimum is set at $20.29 for some.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The bill signed by Newsom last year will force most <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/restaurants-face-worker-shortages-as-pandemic-subsides\/\" title=\"Restaurants face worker shortages as pandemic subsides\">fast food chains<\/a> to raise pay, though the bill included a carveout for businesses that also make and sell bread as a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-fast-food-franchises-are-pushing-back-on-newsoms-20-minimum-wage-law\/\" title=\"Fast-food franchises resist Newsom's  minimum wage law\">separate menu item<\/a>. The carveout was criticized as some alleged it was a favor to one of Newsom\u2019s financial backers, Greg Flynn, a billionaire whose business runs two dozen Panera locations in the state. Newsom <a href=\"https:\/\/thehill.com\/homenews\/state-watch\/4499331-gavin-newsom-says-panera-not-exempt-from-california-minimum-wage-law\/\">denied<\/a> the accusation and insisted Panera was not exempt from the new law. Still, Flynn <\/span><a href=\"https:\/\/www.cnn.com\/2024\/03\/05\/business\/panera-franchise-california-to-raise-minimum-wage\/index.html\"><span style=\"font-weight: 400\">pledged<\/span><\/a><span style=\"font-weight: 400\"> to increase the hourly wage at his Panera locations to $20 an hour after criticism erupted over the exception in the law.<\/span><\/p>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>California fast-food restaurant owners are cautioning customers about impending price hikes with the introduction of a new minimum wage law effective this Monday. Governor Gavin Newsom signed a bill in September increasing the minimum wage for fast food workers in California from $16 to an undisclosed amount. Brace yourself for higher prices soon<\/p>\n","protected":false},"author":70,"featured_media":2208257,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/dw-wp-production.imgix.net\/2024\/03\/Chipotle.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[],"class_list":["post-2208256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire"],"fifu_image_url":"https:\/\/dw-wp-production.imgix.net\/2024\/03\/Chipotle.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2208256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2208256"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2208256\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2208257"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2208256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2208256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2208256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}