Antonio Zavala’s Post

What are you expecting the Businesses to pay to these so-called 'Burger flippers'? $50-100/hour?! - just so they can make a living wage? Working in a Fast food chain is supposed to be an Entry level job for high school/college students who can make $6-10/hour as pocket money. It's not something that you can retire on. The skills required and the expectations are minimal. These jobs need to be used as a 'Stepping Stone' to Bigger, better things - not make a living out of it (unless you own a Franchise). Govt keeps increasing the Labor cost for these businesses and ends up creating job losses in the population with high inflation and higher prices for all. Say Good Bye to McDonald's "Happy Meal".

First, this was a decision made by Pizza Hut franchisees, not a mandate from the Pizza Hut Corp so I'm guessing the decision isn't rooted in a thoughtful data driven way. I predict that as this plays out the franchisees will ultimately have to hire again (or figure out some other way to meet demand). Second, restaurants are not going to be able to replace volume with price increases. They're going to need to understand the right number of people they need to meet the demand. You can't just say "I can't afford to pay people anymore so I'm going to raise prices and fire people." That's not a strategy. Finally, the wage increase is going to weed out poor business operators. This industry is not the only one that has to deal with labor changes. It is however one that is has been dominated by short sighted or a total void of strong business acumen. Ultimately, the smart business owners are going to figure out the right model. (There are still a ton of restaurant jobs available for hourly workers so they can find the jobs if they want them.)

On April 1st, the minimum wage for fast food workers in California will be increased to $20 per hour from $16 per hour, a 25% increase. Ahead of this date, many franchise operators are eliminating positions, cutting employee hours, reducing restaurant hours, and limiting menu options. Employers now have to deal with wage compression as increases will happen across the board within their companies. All of this will lead to higher prices for consumers, and the de facto minimum wage in California will be $20 per hour. Non fast food employers will struggle to keep their employees paying the current minimum wage of $16 per hour. https://lnkd.in/gh5vDiGt

California's minimum $20-an-hour pay floor was supposed to be a boon for restaurant workers. It's turning into one giant patty melt short of reality as restaurants lay off staff and reduce hours to cut costs in an already razor-thin margin business. Even workers increasingly concerned about the consequences and less optimistic about any real impact on their incomes. The burger flipped and landed with a "Splat!". On paper, the wage hike was the first step in providing a livable wage for restaurant workers. While the minimum wage increase only applies to California fast-food chains with at least 59 locations across the country, it's been predicted to put pressure on all restaurants in the state to raise wages in order to compete for workers. But what's more likely to happen especially given the changing job market is hours are going to be cut, staff will be streamlined, and hiring will tail off. Inflation and rising prices are condiments no one wants. Some restaurants and chains have already increased menu prices to offset wage increases with mixed results. More customers are now scaling back on dining out, making price increases detrimental to business. To add further salt to an over-seasoned main course, there's yet another bill that would exempt additional restaurants from the definition of 'fast food restaurant,' including such restaurants in airports, hotels, event centers, theme parks, museums, and certain other locations. While the new $20-an-hour minimum wage isn't set to go into effect until April 1, the implications are unraveling faster than a bowl of spaghetti with restaurant owners, workers and customers all drowning under a tasteless marinara. Right now, some are questioning whether finding the meatball is even worth it https://lnkd.in/dSarFHXW #restaurants #fastfood #wages #workers #california #workforce #business #inflation #customers #hospitality

From restaurants closing to higher prices and reduced hours, minimum wage mandates are impacting the restaurant business. 🤯 According to the California Business and Industrial Alliance (CABIA), 10,000 jobs have been lost after the minimum wage bill was signed in California. Is your restaurant leveraging the right tech to help your business thrive during these turbulent times? GRUBBRR’s self-ordering kiosks are solving labor challenges and increasing revenue for restaurants across the nation. Visit grubbrr.com to request a demo and learn more about how GRUBBRR can help revolutionize your business. #WageMandates #GetGRUBBRR #FoodTech https://lnkd.in/gUKu242s

FOXBUSINESS: CALIFORNIA FAST FOOD WAGE HIKE HAS HAD DETRIMENTAL IMPACT … California’s new law raising the minimum wage for fast food employees to $20/hour is having a devastating impact on workers and businesses … Nearly 10,000 jobs have been cut … Major brands like El Pollo Loco, Subway, Burger King, Chipotle and McDonald's have had to raise prices and lay off workers to stay afloat and, in some cases, shut down stores … When he signed the law, Newsom said the state was getting "one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table” … But you can only raise prices so much. People are not going to pay $20 for a Big Mac … So, to comply with the law restaurants are letting workers go, cutting employee hours, and moving toward automation … For example, Pizza Huts have announced layoffs of 841 delivery drivers across the state … Meanwhile, the increase in pay has caused so much inflation that 78% of consumers now consider fast food to be a "luxury" purchase due to how expensive the meals have become.

California has recently expanded exemptions to the fast food worker minimum wage law. Starting April 1, 2024, fast food workers in California must be paid a minimum wage of $20.00 per hour under AB 1228, passed last year. Governor Newsom has signed AB 610, an amendment to the fast food worker minimum wage law that expands exemptions for certain fast food restaurants in California. Under the revised law, certain restaurants are exempt from fast food worker's minimum wage: ·      Restaurants in various venues like airports, hotels, event centers, theme parks, museums (public or private), and gambling establishments. ·      Restaurants located within a building, group of buildings, or campus used exclusively by a single for-profit corporation for office purposes. ·      Restaurants that are part of a building's or campus' food service contract. ·      Restaurants that are situated on land owned by the state, city, county, or any other political subdivision of the state and are part of a port district or managed by a port authority, public beach, public pier, state park, municipal or regional park, or historic district, and are operated under a concession agreement or food service contract. Important update: The revised law broadening the exceptions to the minimum wage law for fast-food workers went into effect immediately on March 25, 2024. 

Fast Food Minimum Wage Increases Salaries for Exempt Managers By now, most Californians know that the minimum wage for many fast food workers increased to $20 per hour as of April 1st (No, it's not an April's Fools joke). What many don't know is that this also increases the minimum salary required for exempt managers. According to California law, managers at fast food spots must now make at least $83,200/year to keep their exempt status. The California Labor commissioner has already confirmed that covered fast food restaurant employers must use the higher $20 per hour rate set by the new law for their exempt employee calculations. So, what does this mean for employers? Time for a salary check! If you're in the fast food biz, make sure your exempt managers are getting the minimum salary required by law. Missing the mark could lead to costly claims and penalties. Stay informed, stay compliant! 💼💰 #MinimumWage #FastFood #CaliforniaLaw

Labor issues continue to negatively impact the restaurant industry. Operators need to invest in automation to create operational efficiencies. GRUBBRR® kiosks allow restaurants to reallocate labor from the register to other work functions. Additionally, our automatic upsells help restaurants drive incremental revenue. #GetGRUBBRR #kiosks #labor #automation

Wait: Is The Data Skewed On How $20 Per Hour Fast Food Wages Are Affecting Restaurants? This comes courtesy of Yahoo! Finance and The LA Times: "A full-page ad recently placed in USA Today by the California Business and Industrial Alliance asserted that nearly 10,000 fast-food jobs had been lost in the state since Gov. Gavin Newsom signed the law in September. The ad listed a dozen chains, from Pizza Hut to Cinnabon, whose local #franchisees had cut employment or raised prices, or are considering taking those steps. According to the ad, the chains were 'victims of Newsom's minimum wage,' which increased the minimum wage in fast food to $20 from $16, starting April 1." But Tom Manzo, a business lobbyist, said the statistics are misleading: "Here's something you might want to know about this claim. It's baloney, sliced thick. In fact, from September through January, the period covered by the ad, fast-food employment in California has gone up, as tracked by the Bureau of Labor Statistics and the Federal Reserve. The claim that it has fallen represents a flagrant misrepresentation of government employment figures." He goes on: "Something else the ad doesn't tell you is that after January, fast-food employment continued to rise. As of April, employment in the limited-service restaurant sector that includes fast-food establishments was higher by nearly 7,000 jobs than it was in April 2023, months before Newsom signed the minimum wage bill." You can find the rest of the article on Yahoo. https://lnkd.in/eS-yks9c And here's what the CEO of American QSR said about about fast food wages in California, and how the restaurant industry is dealing with them:  https://lnkd.in/eZC2ykn3 #fastfood #wages