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California fast food restaurants have cut 10,000 jobs since passing $20 minimum wage

PoS

PoS

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eman623 said:
It's not a coincidence that CA has the highest unemployment rate in the country.

www.bls.gov

Unemployment Rates for States

www.bls.gov www.bls.gov
Click to expand...
Long term average unemployment in California is 7.15 %. Current unemployment rate is well under that, at 5.3 %. Details are important. California usually has almost 2 % higher unemployment than it does now.
 
Not to mention raising the prices for they're junk food. All over the country fast food prices have gone up significantly. And when they're not raising prices there cutting portion size.

The patty on Burger King cheeseburger is about the size of a half dollar. I pretty much stay away from fast food joints nowadays.
 
There's a discrepancy here. McDonald's saw a 14 percent increase in sales revenue compared to the previous year, reaching 6.7 billion, which surpassed the forecast by 140 million USD.

Well, if the company isn't willing to distribute its revenue to its staff, perhaps it shouldn't have staff at all?

If you can't afford to pay a salary for a full-time job that allows your employees to survive, then you're not equipped to run a business. It's a simple truth
 
Redress said:
Long term average unemployment in California is 7.15 %. Current unemployment rate is well under that, at 5.3 %. Details are important. California usually has almost 2 % higher unemployment than it does now.
Click to expand...
What is your source for the claim that CA unemployent is "well under" 5.3%?

I'm using the BLM rates for the latest month (April 2024)
 
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SenorXm/Sirius said:
NY Post is a rag..

And California has the 4th largest economy in the world...

Thx libs..
Click to expand...
Thats because they have a lot of people.

BUT...........the chickens have come home to roost. Pension costs out of control and under funded by many billions. Illegal aliens sucking the state dry with schools, welfare and health care, regulations drastically increasing the cost of utilities, gas and everything else, the highest tax rate in the nation and the cost for the homeless unsustainable with them now considering defunding police to save money.
 
Grand Mal said:
That's not what the post you quoted says.
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Is @Redress saying that national unemployment is under 5.3%? This is true, but irrelevant. Worker is California don't work in any other state.

This thread is about job losses in California due to the $20/hr min wage for fast food workers.

BTW, starting the month the $20/hr applies to all restaurants with 60 or more outlets in the state. So the job losses will soon be even worse.
 
Paradoxical said:
Thats because they have a lot of people.

BUT...........the chickens have come home to roost. Pension costs out of control and under funded by many billions. Illegal aliens sucking the state dry with schools, welfare and health care, regulations drastically increasing the cost of utilities, gas and everything else, the highest tax rate in the nation and the cost for the homeless unsustainable with them now considering defunding police to save money.
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That's because they have a lot of people?? Lol..

Ur a hell of an economist..
 
Redress said:
You misunderstand. It is 5.3 %, which is below average, which is 7.15 %. https://ycharts.com/indicators/california_unemployment_rate
Click to expand...
That chart includes the Pandemic when CA unemployment was 16%.

Expand your chart to 5 years and you'll see that just before the pandemic, the unemployment rate was steady at 4.1% for at least 4 months. That's your baseline.

And California does historically have the highest unemployment in the country.
 
In the weeks before the wage hike went into effect, some California fast food owners began letting go of workers in anticipation of the increased labor costs. In December 2023, the Southern California Pizza Co., which owns multiple Pizza Huts stores, announced layoffs of around 841 delivery drivers across the state.
Click to expand...

From what I can read, from other sources, seems to be they are switching from first party delivery (themselves) to third party (doordash, uber eats) probably because that just makes sense business wise but they can spin it better to make it seem like it was the minimum wage increase.
 
Great, so everyone hates the source, which is sometimes worthy of evaluation, but here are some other options reporting near to the same thing.

www.abc10.com

Is California's $20/hr min. wage for fast food workers hurting restaurants?

A law requiring large fast food chains in California to pay workers at least $20 an hour went into effect April 1. Two months later, how is it working?
www.abc10.com www.abc10.com
abcnews.go.com

Some California restaurants face stark realities, burdens after minimum wage increase

California restaurant owners, including CEO of one of the largest El Pollo Loco franchises, explain how the new minimum wage is hurting business.
abcnews.go.com abcnews.go.com

The reality, as in the reality away from the bubbles of California liberalism and to an extent MAGA Republicanism, is the very businesses that California targeted for wage increases run overall business models seeing anywhere from 3% to 6% profit margins. Sometimes more using multiple location franchise models but not really. Very slim means to cut into.

So any change in any aspect of cost, including labor cost, means an immediate decisions on number of people working, how long they work, what can be cut, and where prices can increase.

Unfortunately for the most vulnerable, California liberalism ignored economic reality and is now seeing various consequences ranging from layoffs, to location closes, to price increases from whoever is left standing, to a few going into bankruptcy and reorganization processes. And it happens to be exactly what various businesses and organizations said would happen.

Economics 101 guys, aggregate shifts that in this case resulted in less demand for the labor, higher prices to cover who is still employed, and less locations impacting the lot of it.

And we can see that California is going to double down, triple down, on the idea expanding the businesses impacted (as in sector and size) putting in place more minimum wage increases ignorantly expecting a different result.

This is why we can call it lazy progressivism. The expectation that one can force a single change into a business or area of the economy and assume every single other factor stays constant, which passes by absolutely no interpretation of economics whatsoever.

California did this to themselves, ended up with more inflationary pressures and killed a few jobs / businesses in the process. Well done!
 
Juks said:
There's a discrepancy here. McDonald's saw a 14 percent increase in sales revenue compared to the previous year, reaching 6.7 billion, which surpassed the forecast by 140 million USD.

Well, if the company isn't willing to distribute its revenue to its staff, perhaps it shouldn't have staff at all?

If you can't afford to pay a salary for a full-time job that allows your employees to survive, then you're not equipped to run a business. It's a simple truth
Click to expand...
It just means they pass on the price you pay for junk food or use a smaller workforce
 
I live in Southwest Florida, you couldn't pay me to live in California.
 
gboisjo said:
It just means they pass on the price you pay for junk food.
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Well, if you can't charge the price you need to cover your costs, then you don't have a business to begin with. Simple truth as well. But I actually don't think that applies to McDonald's.
 
Juks said:
There's a discrepancy here. McDonald's saw a 14 percent increase in sales revenue compared to the previous year, reaching 6.7 billion, which surpassed the forecast by 140 million USD.

Well, if the company isn't willing to distribute its revenue to its staff, perhaps it shouldn't have staff at all?

If you can't afford to pay a salary for a full-time job that allows your employees to survive, then you're not equipped to run a business. It's a simple truth
Click to expand...

That is not what happens. Using your example, there is a difference between McDonald's Corporate and individual or chains of franchise locations. Less than 10% of all McDonalds locations are some means of being "corporate owned." The idea of "distribute its revenue to its staff" is irrelevant, 90%+ of those that work for McDonalds actually report up through McDonalds Corporate.
 
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OrphanSlug said:
killed a few jobs / businesses in the process
Click to expand...
Fast food crap chains like Burger King laid off some workers over the course of an entire year

Oh no. Hint: they were going to lay them off anyway as soon as they could replace them with automation.
 
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