UNEXPECTEDLY! California Restaurants Cut Jobs as Fast-Food Wages Set to Rise.
In San Jose, Brian Hom, owner of two Vitality Bowls restaurants, now runs his stores with two employees, versus four workers that he typically used in the past. That means it takes longer to make customers’ açaí bowls and other orders, and Hom said he is also raising prices by around 10% to help cover the increased labor costs.
“I’m definitely not going to hire anymore,” he said.
Proponents of the California law setting the new minimum food-worker wage and a state-appointed council overseeing it have said the measures would help improve the lives of hundreds of thousands of local workers. Organized labor groups have said they hope to replicate the law in other states.
The coming minimum-wage increase for California fast-food workers at bigger chains represents a 25% increase from the state’s broader $16 minimum wage. McDonald’s, Chipotle Mexican Grill, Jack in the Box and other restaurant chains have said they would raise menu prices in California to offset some of the cost.
Many California restaurant operators are looking for other ways to cover the cost, like reducing hours, closing during slower parts of the day or serving menu items that take less time to make.
“I can’t charge $20 for Happy Meals. I’m leaving no stones unturned,” said Scott Rodrick, owner of 18 McDonald’s restaurants in Northern California.
Other restaurateurs, including Hom of Vitality Bowls, said they are turning down opportunities to open new locations in California and looking at expanding in other states instead.
Previously: “California, with 12 percent of the American population, is home today to roughly one in three of the nation’s welfare recipients.”
All they know how to do is make things worse.