Counters behind fast food restaurants across the Golden State may soon be emptier.
That’s in part because restaurant owners in California are scrambling to reduce expenses ahead of a new California state law that will increase the minimum wage of fast food workers to $20 an hour on April 1.
Ahead of the new law, some employers are making serious adjustments, such as cutting staff hours, laying off workers, and even closing the doors during sluggish parts of the day.
McDonald’s restaurant owner Scott Rodrick is feeling pressured to implement changes.
“I can’t charge $20 for Happy Meals,” Rodrick, who owns 18 of the golden arches in Northern California, told the Wall Street Journal. “I’m leaving no stones unturned.”
The wage hike is ricocheting. In December, former Pizza Hut driver Michael Ojeda told the publication that he was notified “with little to notice” that his last day would be in February. Ojeda had worked at the restaurant for nearly a decade.
Ojeda’s experience may highlight the fate of other delivery drivers. Pizza Hut and Round Table Pizza franchise owners, for example, are planning to lay off roughly 1,280 delivery drivers this year, the publication said.
California has about 500,000 fast food workers. In 2022, the state’s hourly wage for fast food workers was $16.21.
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