{"id":2291969,"date":"2024-07-10T13:48:57","date_gmt":"2024-07-10T17:48:57","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/californias-20-fast-food-minimum-wage-has-immediate-impact-as-franchisees-are-forced-into-a-bind\/"},"modified":"2024-07-10T13:51:41","modified_gmt":"2024-07-10T17:51:41","slug":"californias-20-fast-food-minimum-wage-has-immediate-impact-as-franchisees-are-forced-into-a-bind","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/californias-20-fast-food-minimum-wage-has-immediate-impact-as-franchisees-are-forced-into-a-bind\/","title":{"rendered":"California&#8217;s $20 Fast Food Minimum Wage Has Immediate Impact as Franchisees Are Forced Into a Bind"},"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\">32<\/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-20-fast-food-minimum-wage-has-immediate-impact-as-franchisees-are-forced-into-a-bind%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=2291969&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>The article discusses how \u200ba \u2062new California law raising the hourly wage for <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>\u2062 from $16 to $20 has impacted restaurant owners \u200band operators. Lawrence Cheng, who owns multiple Wendy&#8217;s locations, has had to cut\u200d back on staff and work extra hours\u200b himself to absorb the increased labor costs. Other restaurant \u2063owners have also \u2063been forced to cut \u2062hours, raise prices, and reduce staff in order to stay in business. While some argue that the higher wage has attracted better job candidates and reduced turnover, others are concerned about how the added costs will affect their bottom line. The California Restaurant Association, which opposed the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/why-two-democratic-senators-oppose-the-15-minimum-wage\/\" title=\"Why Two Democratic Senators Oppose the  Minimum Wage\">minimum wage bill<\/a>, warns that businesses with already thin profit margins will be forced to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/watch-georgia-mom-breaks-down-over-child-mask-mandate-in-schools-shame-on-us\/\" title=\"WATCH: Georgia Mom Breaks Down Over Child Mask Mandate In Schools: \u2018Shame On Us\u2019\">make difficult decisions<\/a> \u200din order to stay afloat.  <\/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\"><br \/>\n<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"> <?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<header> <a href=\"https:\/\/www.westernjournal.com\/news\/\">  News <\/a>   <span> <\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/ap-reports\/\">  <\/a> <\/p>\n<p> <span>   By <a href=\"https:\/\/www.westernjournal.com\/author\/ap-reports\/%20\"><span>The Associated Press<\/span><\/a> <\/span> <span>   July 9, 2024 at 10:07pm <\/span> <\/span>  <\/header>\n<section>\n<p>Lawrence Cheng, whose family owns seven Wendy\u2019s locations south of Los Angeles, took orders at the register on a recent day and emptied steaming hot baskets of French fries and chicken nuggets, salting them with a flourish.<\/p>\n<p>Cheng used to have nearly a dozen employees on the afternoon shift at his Fountain Valley location in Orange County.<\/p>\n<p>Now he schedules only seven for each shift as he scrambles to absorb a drastic jump in labor costs after a new California law boosted the hourly wage for <a href=\"https:\/\/www.westernjournal.com\/newsoms-restaurant-pays-16-hour-despite-law-crippling-fast-food-chains-20-minimum-wage\/\" target=\"_blank\" rel=\"noopener\">most fast food workers<\/a> on April 1 from $16 to $20 an hour.<\/p>\n<p>\u201cWe kind of just cut where we can,\u201d he said. \u201cI schedule one less person, and then I come in for that time that I didn\u2019t schedule and I work that hour.\u201d<\/p>\n<p>Cheng said he hoped the summer \u2014 when business is traditionally brisk with students out of school and families traveling or spending more time eating out \u2014 would bring a better profit to help cover the added costs.<\/p>\n<p>Joseph Bryant, executive vice president of the Service Employees International Union, which pushed for the raise, claimed not only that the industry has added jobs under the new law but that \u201cmultiple franchisees have also noted that the higher wage is already attracting better job candidates, thus reducing turnover.\u201d<\/p>\n<p>But many major fast food chain operators say they are cutting hours and raising prices to stay in business.<\/p>\n<p>\u201cI\u2019ve been in the business for 25 years and two different brands, and I never had to increase the amount of pricing that I did this past time in April,\u201d said Juancarlos Chacon, an owner of nine Jersey Mike\u2019s in Los Angeles.<\/p>\n<p>A turkey sub for under $10? It\u2019s now $11.15.<\/p>\n<p>While customers are still coming in, he\u2019s seeing them cut back \u2014 no drinks, no chips, no dessert.<\/p>\n<p>Since the chain\u2019s core business is lunch, Chacon has reduced staffing in the mornings and evenings. He also has cut a few part-time employees, going from 165 total to about 145.<\/p>\n<p>It wasn\u2019t only <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/what-does-the-data-tell-us-about-the-disproportional-impact-of-covid-19-lockdowns-on-women\/\" title=\"What Does The Data Tell Us About The Disproportional Impact Of COVID-19 Lockdowns On Women?\">entry-level workers<\/a> that got a pay raise. Shift leaders, assistant managers and everyone else up the ladder had to get raises too, and labor represents about 35 percent of his costs.<\/p>\n<p>\u201cI\u2019m very nervous,\u201d Chacon said.<\/p>\n<p>Jot Condie, president and CEO of the <a href=\"https:\/\/www.westernjournal.com\/ap-will-not-survive-struggling-businesses-blast-californias-shutdown\/\" target=\"_blank\" rel=\"noopener\">California Restaurant Association<\/a>, which opposed the minimum wage bill, said businesses are simultaneously feeling the squeeze from rising rents and food costs.<\/p>\n<p>\u201cWhen labor costs jump more than 25 percent overnight, any restaurant business with already-thin margins will be forced to reduce expenses elsewhere,\u201d Condie said. \u201cThey don\u2019t have a lot of options beyond increasing prices, reducing hours of operation, or scaling back the size of their workforce.\u201d<\/p>\n<p>Aaron Allen, founder and CEO of a global restaurant consulting firm, said he has received panicked calls from California restaurant operators and suppliers who are still recovering from the COVID-19 lockdown.<\/p>\n<p>He predicted a growing divide between corporations such as McDonald\u2019s that have money to invest in automation and reduce costs through \u201cmenu reconfiguration\u201d and \u201csmaller, more regional chains that might go under or face a major reduction in stores.\u201d<\/p>\n<p>Cheng said he has no plans to lay off any of his 250 Wendy\u2019s workers and instead has turned to cutting overtime and reducing the number of workers on each shift. He also raised menu prices by about 8 percent in January in anticipation of the law.<\/p>\n<p>Still, he said his books show that he was $20,000 over budget for a two-week pay period.<\/p>\n<p>Julieta Garcia, an employee at a <a href=\"https:\/\/www.westernjournal.com\/pizza-hut-forced-close-15-locations-amid-brutal-battle-stunning-workers-129-locations-risk\/\" target=\"_blank\" rel=\"noopener\">Pizza Hut<\/a> in Los Angeles for a little over a year, said she\u2019s now working five days instead of six. But that\u2019s not a bad thing, she said, since she can spend more time with her 4-year-old son.<\/p>\n<p>The extra money means she can pay her cellphone bill on time, instead of having to turn off service, and take her son to get his tonsils checked out, Garcia said.<\/p>\n<p>Enif Somilleda, a general manager at a Del Taco in Orange County, said she used to have four people working per shift. She now has only two.<\/p>\n<p>\u201cFinancially it has helped me,\u201d Somilleda said. \u201cBut I have less people so I have to do a lot more work.\u201d<\/p>\n<p>The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.<\/p>\n<\/section>\n<p><\/body><\/html><br \/>\n<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lawrence Cheng, owner of seven Wendy&#8217;s locations in Southern California, has had to reduce his staff and work longer hours himself to cope with the increased labor costs due to a new California law raising the minimum wage for fast food workers. While some claim that the higher wage has attracted better job candidates and reduced turnover, many franchise owners are cutting hours and raising prices to stay in business. Some are also considering automation and menu changes to reduce costs. Despite the challenges, Cheng is determined not to lay off any of his 250 workers and has made adjustments to his operations to manage the increased expenses. Other restaurant owners, like Julieta Garcia and Enif Somilleda, have also had to make changes to their staffing and operations to adapt to the new wage law<\/p>\n","protected":false},"author":136,"featured_media":2291970,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/07\/0361a9e06d59465da9aee1089c93c479-scaled-e1720628023336.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[4045,13123,13133,34539,32421],"class_list":["post-2291969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-california","tag-economics","tag-fast-food","tag-franchisees","tag-minimum-wage"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/07\/0361a9e06d59465da9aee1089c93c479-scaled-e1720628023336.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2291969","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\/136"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2291969"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2291969\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2291970"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2291969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2291969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2291969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}