Minimum Wage Increase Takes Toll on California’s Fast Food Restaurants, Survey Finds

Published on July 30, 2024

Two-thirds of California fast food restaurant operators who responded to an online survey believe their costs will increase at least $100,000 annually per location, according to a report released July 19 by the Employment Policies Institute—a Washington D.C.-based lobby group. Approximately 26 percent of respondents said they expect costs to increase by more than $200,000 at each location. In June and July, 182 operators were polled on their thoughts about a new minimum wage law requiring quick service restaurants with at least 60 locations nationwide to pay employees a minimum of $20 per hour. The law took effect April 1. “Even before the $20 wage went into effect, fast food restaurants made it clear they would not be able to survive,” Rebekah Paxton, research director for the institute, said in a statement emailed to The Epoch Times. “Now after just a few months, the policy has been a disaster, killing jobs and shuttering restaurants.”...

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