{"id":2233873,"date":"2024-04-30T16:53:02","date_gmt":"2024-04-30T20:53:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/californias-fast-food-minimum-wage-hike-is-backfiring\/"},"modified":"2024-04-30T16:57:07","modified_gmt":"2024-04-30T20:57:07","slug":"californias-fast-food-minimum-wage-hike-is-backfiring","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/californias-fast-food-minimum-wage-hike-is-backfiring\/","title":{"rendered":"California&#8217;s increase in fast-food minimum wage is having unintended consequences"},"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\">20<\/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%2Fcalifornias-fast-food-minimum-wage-hike-is-backfiring%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=2233873&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>California&#8217;s fast-food <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/under-trump-americans-have-seen-their-best-wage-growth-in-40-years\/\" title=\"Under Trump, Americans Have Seen Their Best Wage Growth In 40 Years\">minimum wage<\/a> hike, active for a month, is resulting in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/employees-happier-working-less-hours\/\" title=\"Happier employees with fewer work hours.\">fewer work hours<\/a> and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-court-agrees-to-hear-arguments-over-epas-interstate-pollution-rule\/\" title=\"Supreme Court to review EPA's interstate pollution rule\">potential\u200b job losses<\/a>. Pollo West Corporation, major El Pollo Loco franchisee, saw\u200b profits turn into losses overnight. Worker hours decreased by\u2062 10%, prices rose in preparation for the \u200bhike, driving a \u20633% drop in business. Overall, fast-food\u2063 prices in California surged by 10% since September. The recent fast-food\u2063 minimum wage increase in California has led to \u200dreduced work \u200dhours, \u2062possible\u200b job cuts, and\u2062 financial \u2063challenges for major franchisees\u200b like Pollo \u200dWest Corporation. With a 10% decrease in worker hours and a 3% decline in business due \u2062to price hikes, overall fast-food prices in\u200b California have seen \u2064a significant 10% surge since September.  <\/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<div data-td-block-uid=\"tdi_78\">\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/tag\/california\/\" target=\"_blank\" rel=\"noopener\" title=\"California\">California<\/a>\u2019s fast-food <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/wages\" target=\"_blank\" rel=\"noopener\" title=\"minimum wage hike\">minimum wage hike<\/a> has been in effect for just one month, and the consequences are proving to be fewer hours and potentially <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/jobs\" target=\"_blank\" rel=\"noopener\" title=\"fewer jobs\">fewer jobs<\/a> for workers.<\/p>\n<p>Pollo West Corporation, the largest franchisee of El Pollo Loco restaurants in California, has <a href=\"https:\/\/abcnews.go.com\/GMA\/Food\/california-restaurants-face-stark-realities-burdens-after-minimum\/story?id=109741431\" target=\"_blank\" rel=\"noopener\" title=\"said\">said<\/a> that its franchises went from profitable to losing money overnight when the fast-food wage hike went into effect. It also said that the franchises have reduced worker hours by 10%. Meanwhile, the restaurants had raised prices in February to prepare for the wage hike, leading to a 3% decline in business.<\/p>\n<p>In total, fast food prices have gone up in California by 10% since September, a larger <a href=\"https:\/\/www.wsj.com\/business\/hospitality\/california-fast-food-chains-are-now-serving-sticker-shock-64009282\" target=\"_blank\" rel=\"noopener\" title=\"increase\">increase<\/a> than in any other state. Restaurants have already passed those prices on to consumers, as was expected, and are cutting hours and adding kiosks. Fewer hours for employees means less money, fewer sales to consumers means less business, which means fewer hours for employees, and automated kiosks mean a reduced need for employees, which means fewer hours (or jobs) for employees.<\/p>\n<p>Are you starting to see how the \u201cminimum wage\u201d ends up backfiring on the very employees it supposedly benefits?<\/p>\n<p>This is always how the minimum wage song and dance goes. When congressional Democrats wanted to impose a one-size-fits-all $15-an-hour federal minimum wage on the country, the Congressional Budget Office <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/2449667\/another-minimum-wage-hike-will-fuel-californias-decay\/\" target=\"_blank\" rel=\"noopener\" title=\"determined\">determined<\/a> that it would lift 900,000 people out of poverty. Less mentioned was the (<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/child-migrant-surge-expected-to-last-at-least-another-seven-months-increase-to-25k-children-per-month\/\" title=\"Child Migrant Surge Expected To Last At Least Another Seven Months, Increase To 25K Children Per Month\">low-end estimate<\/a>) 1.4 million people it would throw into poverty via unemployment. Even California Democrats knew this, which is why politically connected businesses managed to be granted <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/beltway-confidential\/2939934\/california-democrats-play-a-corrupt-game-of-fast-food-winners-and-losers\/\" target=\"_blank\" rel=\"noopener\" title=\"exemptions\">exemptions<\/a>, on which the state is now muddying the waters.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<p>As if California didn\u2019t run enough businesses out of business and employees out of jobs during the pandemic, the state is now \u201chelping\u201d them by embracing economic illiteracy. The minimum wage for California fast-food workers is not $20 an hour. It is, and always has been, zero, a hard reality that more current and prospective workers are going to continue to find out the hard way.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>California&#8217;s recent fast-food minimum wage raise, implemented for only a month, is yielding adverse outcomes: reduced work hours and possible job cuts. Pollo West Corporation, the leading El Pollo Loco franchisee in California, witnessed its once profitable franchises transition to loss-making ventures virtually overnight<\/p>\n","protected":false},"author":2742,"featured_media":2233874,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/03\/AP23271766440983-1024x683.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2233873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/03\/AP23271766440983-1024x683.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2233873","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\/2742"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2233873"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2233873\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2233874"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2233873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2233873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2233873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}