Tag Archive for: bloodbath

California Raises Minimum Wage to $20 Per Hour, Massive Layoffs Ensue, Businesses Close

This week, California raised the minimum wage for fast food workers to $20/hour.

The bloodbath has already begun.

Pizza Hut, Mods Pizza closed five of their CA branches, Fosters Freeze shut down and laid off all their employees. Vitality Bowls cut their staff in half and hiked their menu prices by 10%.

California: New $20 Minimum Wage Law For Fast Food Employees Scheduled To Take Effect On April 1st

By: Elizabeth Volberding, One America News, April 2024;

The minimum wage for fast food employees in California will increase to $20 per hour under a new law in the state, and employers claim that having to pay their employees more will now affect their customers as they are planning to raise prices and lay off workers.

On Monday, the minimum wage for fast food workers in California will increase to $20 per hour, providing many with a 25% pay increase from just the past week.

However, chains that “bake and prepare bread in-house to sell as a stand-alone menu item” are excluded from the new regulation.

Some of the largest food chains are impacted by the ruling, including McDonald’s, Pizza Hut, KFC, Subway, and Starbucks. Local franchisees are now concerned about the rise in labor expenses.

Regarding the United States’ economy, fast food professions are among the lowest-paying, notwithstanding recent wage growth following decades of stagnation. Many of these workers are below the poverty line.

In order to cover the necessary wage rise, fast food restaurants such as Jack in the Box, Chipotle Mexican Grill, and McDonald’s stated that they intend to increase menu prices. Representatives stated that it is necessary for other business owners to do so as well in order to stay competitive.

“Even the tater tots, everything, the price is going to increase on that,” explained Brady Farmer, Chef Bradley Cook’s Catering Owner.

Although Farmer is not required to raise his minimum salary as a small business owner, he stated that he wants to treat his employees well and does not want them to quit. He went on to say that it will add up to cover that additional ground.

“Imagine the guy who has to go out and do that ten-hour job of all your shopping, organizing, driving around,” he said. “You get into an extra $20, $40 or $50, $100, or $200 dollars a day.”

McDonald’s employee Jaylene Loubett, who is based in Los Angeles, highlighted that her city is among the most costly in the state of California, which is also one of the most expensive states overall to live in.

“Even though it’s a big help, people need to realize that $20 compared to the cost of living in Los Angeles, it’s still not enough to feel secure,” said Loubett, 25, who has worked at McDonald’s for six years.

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This is what will happen:



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EDITORS NOTE: This Geller Report is republished with permission. All rights reserved.