California’s fast-food managers are smiling all the way to the bank. While employees cheered the new $20 minimum wage law, managers are cashing even larger checks.
This change spiked their salaries by a whopping 25% to at least $83,200 annually.
Raising Cane’s Raises the Stakes
![](https://images.savvydime.com/2024/06/da130c52-untitled-design-40.jpg)
Over at Raising Cane’s, general managers in California are now enjoying salaries that can soar up to $174,000 annually.
This boost includes hefty bonuses tied to how well their stores perform. This substantial increase is a result of the recent wage law overhaul, reports The Wall Street Journal.
More Money, More Milestones
![](https://images.savvydime.com/2024/06/e73aebbd-untitled-design-41.jpg)
Monique Pizano, a general manager at Raising Cane’s, saw her paycheck bump up from $79,000 to $85,000.
And that’s not all—she could add up to $7,500 more each month in bonuses. “It’s been life-changing for my family,” Pizano shared with the Wall Street Journal.
California Dreamin’ or Dining Dilemma?
![](https://images.savvydime.com/2024/06/7695c70c-untitled-design-42.jpg)
While managers count their extra cash, some chains are feeling the pinch.
The introduction of the $20 minimum wage has led to increased menu prices and even some store closures. It’s a mixed bag of fortunes in the fast-food lane.
Customers Cut Back on and Costs
![](https://images.savvydime.com/2024/06/6556d730-untitled-design-43.jpg)
A Placer.ai study reveals a downturn in diner visits.
Post-wage hike, foot traffic at Burger King, Wendy’s, and McDonald’s has dipped by 3-4%. It appears the higher costs might be driving customers away.
Rubio’s Retreat
![](https://images.savvydime.com/2024/06/1e06126a-untitled-design-44.jpg)
The wage increase has hit some harder than others.
Rubio’s Coastal Grill cited soaring operating costs as a reason for shutting down several California locations and even filing for Chapter 11 bankruptcy.
Fosters Freeze-out
![](https://images.savvydime.com/2024/06/952f2432-untitled-design-45.jpg)
Another casualty in the fast-food scene, Fosters Freeze, had to close a Fresno outlet.
The franchise owner cited the impossibility of meeting the payroll demands under the new wage law.
Pricey Burgers
![](https://images.savvydime.com/2024/06/1c54709f-untitled-design-46.jpg)
In the months leading up to the wage law, fast food joints hiked prices by around 7%.
Places like Wendy’s and Taco Bell nudged their menu prices up to 8%, prepping for the payroll increase.
In-N-Out Tweaks Its Prices
![](https://images.savvydime.com/2024/06/1548861c-untitled-design-47.jpg)
Even In-N-Out Burger hasn’t been left untouched; the chain has had to raise its prices in response to the wage changes.
In LA County, the price for a double-double burger combo now stands at $11.44, up by $0.76 from last year.
Automation on the Rise
![](https://images.savvydime.com/2024/06/2d2ba96f-untitled-design-48.jpg)
As labor costs climb, more fast-food chains are turning to technology.
Self-serve kiosks are increasingly common as these establishments look to streamline operations and keep costs down.
Mixed Effects of the Wage Increase
![](https://images.savvydime.com/2024/06/fa8e4c57-untitled-design-49.jpg)
The increase to a $20 minimum wage has brought mixed results.
While it’s a boost for employees like fast-food managers, it has introduced challenges for businesses, leading to price increases and some closures.
What’s Next for Fast Food?
![](https://images.savvydime.com/2024/06/20953ba3-untitled-design-50.jpg)
As California navigates these changes, the rest of the industry watches closely.
Will other states follow with similar wage increases, and what will that mean for our fast-food favorites? Only time will tell how this big bet on higher wages pans out.