California restaurants are reportedly laying off staff and reducing hours for other team members in an effort to cut costs ahead of a California state law taking effect on April 1 that will raise fast-food workers’ hourly wage to $20.
In the months leading up to the wage mandate, California eateries, particularly pizza joints, have established a plan to cut jobs, according to state records obtained by The Wall Street Journal.
I had never walked in the place.
Ditto, a Panera.
I think it is really hard to keep restaurants staffed at all.
Overall fast food employment will be fine. We should worry more about the crap parents are feeding their families.
From the WSJ:
California had 726,600 people working in fast-food and other limited-service eateries in January, down 1.3% from last September, when the state backed a deal for the increased wages. Total private employment in the state declined 0.2% over that period, according to state figures.
There are only three ways to make the math work: (1) reduce labor hours, (2) accept a reduction in margin, or (3) raise prices. One is bad for workers, one is bad for owners, and one is bad for customers.
in the US as of February. At 5.3% it is even higher than non-state the District of Columbia.
I won't argue causation (maybe in 3-5 years we will have definitive studies on this), but I will note that among the 5 highest unemployment states + DC you have CA (5.3%), DC (5.2%) and WA (5.1%) have the highest unemployment rates and it has been pretty persistent that way. And then CA has been the most aggressive it seems with even higher city minimum wages and now industry specific minimum wages. I suspect minimum wage is one contributing factor CA's persistent high unemployment. But we are really only 5-6 years into the aggressive national push on minimum wages, so more to come.
COVID sick days above and beyond PTO, overtime kicking in days that employees work more than 8 hours, having to pay minimum 4 hours on days when employees are scheduled but offered voluntary time off, ridiculous unemployment rules, and now this minimum wage.
It’s stupid.
Wage hike.
"Historically, the unemployment rate in Washington has been higher than the U.S. average, due primarily to a relatively high share of resource-based industries in the state which have more volatile seasonal employment patterns."
Washington is tracking national unemployment more closely now than it has in prior decades.
$15-20 for a cup of soup and half a sandwich? Get bent. At that rate they probably could pay their employees $20/hr (not saying that's good or bad, just bitching)