This has had a significant impact on the fast-food industry in California as workers bear the brunt of the fallout.

The current rise is 25% from $16 per hour, with the $22 rejected by businesses who made the compelling case that they wouldn’t be able to cope with such a sudden increase.

There was some concern beforehand that most small businesses would struggle with this increase, but they seem not to be affected by it.

It was also done so fast food workers could have more money to afford the basic necessities. However, as many of these workers are now losing their jobs due to this increase, there are some questions as to how compassionate this supposed compassionate legislation actually is.

But as people are seeing mass layoffs as a result of this increase, no one wants to even apply for jobs in the industry because they fear getting fired as soon as they are hired.

Meanwhile, Americans struggle to bear the cost of the product that is presently thought to be a “luxury item” by certain shoppers.

He went on to say: “That’s why we decided to run this ad in the first place, and… business owners are fed up… Quite frankly, it’s having a ripple effect now on everybody.”

CABIA has published an advertisement with mock “obituaries” of popular fast food brands in Thursday’s statewide edition of USA Today to highlight what it claims are the law’s unintended consequences.

This was done because it had been predicted that the new increase would be tough for businesses and would only result in mass layoffs and price increases. Some employees found out they were going to be losing their jobs towards the end of 2023.

Pizza Hut hopes that the delivery experience remains the same for its customers, but it’s not good news for those who have lost their jobs or those living in areas where deliveries will be affected.

The promotion highlights news clips recording changes made by brands like El Pollo Loco, Subway, and Burger King across the state.

As they don’t have to pay them wages, it should theoretically work out cheaper in the long run. El Pollo Loco and Jack in the Box are two restaurants that plan on doing this, including using them to prepare salsa and cook fried foods.

This means eliminating staffed kiosks and relying only on kitchen staff to prepare and cook the food.

“We’re going to continue to fight,” he continued. “We advocate for small to medium-sized businesses, people that don’t have a voice… We need to change the direct trajectory, and that’s what we’re going to do. That’s our mission.”

According to the governor’s spokesperson, the U.S. Bureau of Labor Statistics showed that limited-service restaurants added 4,500 jobs in California between September 2023 and April 1, and from April 2023 to April 1, 6,600 new fast food jobs were created.

Menu prices have also increased due to the wage increase. 68 % of respondents to a survey conducted by LendingTree agree that the prices of fast food items are excessive.

But now it is seen as a luxury item, California business leaders have said that this shouldn’t be the case and that changes need to be made so that fast food can go back to being cheap.

Compared to other fast food restaurants throughout the rest of the US, California’s outlets are struggling the most. The reason seems to point towards the $20 minimum wage increase.

Chipotle has said it will be increasing its prices by as much as 18%, meaning customers are less likely to walk through its doors as they can no longer afford the price increases on top of everything else.

Maze stated, “It’s a tough thing to do. You got two issues. You have the fact that it was done almost overnight. You have the fact that it was a 25% increase in the wage rate. Both of those things, happening simultaneously, is a really hard thing for restaurants”

As many workers are struggling to afford the basic cost of living, an increase to $30 would be great for them; however, it would hurt businesses financially and could also lead to more layoffs.

Maze stated, “This has been a challenging environment. If you looked at what McDonald’s had reported just a couple of weeks ago, their prices are up 40% since 2019.”

He went on to say, “Insurance costs are up. Lending rates are up. Everything costs a lot more. Construction costs are up, and that requires companies to increase prices.”

Along with a high tax and cost of living the latest in government policies is putting a strain on businesses.

In increasing the minimum wage Newsom has caused division amongst political commentators who struggle to see the rhetoric in causing such a dramatic shift.