Breitbart A new California law championed by Gov. Gavin Newsom (D) boosted the hourly wage for fast food workers from $16 to $20 an hour. The law took effect on April 1, 2024. It didnât take long for fast-food restaurants across the state to feel the impact on their bottom line. Many have been forced to lay off employees, cut hours, and increase prices to offset the stateâs new wage requirement.
The Cheng family operates seven Wendyâs restaurants in Southern California. To offset the mandatory wage increase, theyâve had to reduce their workforce nearly by half, cut hours for remaining staff, and increase prices by 8 percent to stay in business.
Wendyâs is not the only chain to suffer from the new mandate. Rubioâs California Grill has reportedly shut down dozens of locations across the state. Jersey Mikeâs has had to cut part-time staffers. Other chain restaurants, including McDonaldâs and In-N-Out, have been forced to raise menu prices. The iconic Arbyâs in Hollywood had to shutter its doors after 55 years. They could not overcome the increased food costs, inflation, and the new minimum wage law. Instead of earning $20 an hour, many fast-food employees in California are now making $0 and must find new jobs in an already difficult marketâthe opposite result of the new lawâs intended outcome.
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