Broad effects of new California law that raises minimum wage to $20 for some fast-food workers
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- Опубліковано 31 бер 2024
- While hundreds of thousands of fast-food workers will benefit from the pay raise, many franchise owners say the increase will strain their businesses, forcing them raise prices and lay off some workers. NBC News' Liz Kreutz reports.
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#California #MinimumWage #FastFood
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The interviewee and former Pizza Hut employee said it best, "what's the point of a raise if you don't have a job?"
You hate black people
This women is crying for a higher wage but did she ever try getting another job. No she waited for the government to force a higher wage. Now she may lose her job. Sad really
they are idiots...thats why they work there......instead of cutting tax off their paycheck income, they would ask their company for more money just to have it be tax again.
1:26 so you are telling me this guy worked a fas tfood job for 8 years???? People have to realize fast food jobs are not meant as a long term job or something to support your family on.
Owners want it that way. They expect these folks to show up 40 hours a week and know how to do the job. They do not want to pay a high school kid to come in for 4 hours a week and not know every job. You want full time workers then you have to give full time wages.
They get tips also.
@@toddtheisen8386 That's a great point. The response will be to eliminate full time positions.
@@jesseparrish1993 Which will reduce profits because full time workers are much more efficient than part time. That is why part time is used to fill in or take up temporary increases of sales/production. Bad business to forget that.
@@toddtheisen8386 I haven't seen anything reporting that the current law doesn't apply to part time as well. Let me know otherwise.
As to your comment: not in this industry. Restaurants have peak hours - meal times - meaning that only a small percentage of shifts can be 8.5 or 10.5 hours. Morning prep, cleanup, maybe a few night shifts, basically. I worked a ramp job in the airlines with a similar structure relative to burst demand and created scheduling for it. Hence why something like 20% of fast food employees are full time.
Turnover in the industry is 150%. You simply can't count on having more than a few people who stick around for long, full time or not. You will always need fresh part-time workers for peak demand hours. The point of fast food is that anybody can work such a position with very little experience.
But the bigger story is going to be location: you can support lower margins and/or higher pays without increasing prices if you restrict your locations to high volume areas. This is why McDonald's workers in Denmark can make $22/hr without sacrificing quality or greatly increasing the prices. But a quieter Interstate Exit McDonald's? Those will disappear and/or full time positions will be eliminated.
She'll be laid off and replaced with a computer kiosk in 6 months
Lol😂😂😂
Her chain will be declared "financially unreliable" and closed
I bet she won't BLM.
I would fire her immediately... pure foolishness
Not even 6 months, restaurants are closing left and right
Not even in California and our fast food places are drying up...
Newsom this isn't going to work for you 😅
SOON TO BE LAID OFF.
It is so sad to me that people actually think that getting that minimum wage increase is going to help them.
You cannot raise the minimal amount of payment and expect prices to stay where they are.
they should raise the marine combat pay to 20 dollars a hour that would be nice.
that's true
What's she doesn't understand, is that she will be laid off soon for "unprofitable" to keep
She also doesn't understand that when minimum wage goes up the price of living goes up.
No, her food stamps and section 8 will stop. Then she will really be crying .
@@louisepalma6951 well price of living has gone up since Covid an wages been same past ten yrs something has to be done
@@louisepalma6951 TANSTAAFL - EVERY TIME the cost of labor increases, the cost of living goes up, be it minimum wage employees, or the high paid psychiatrist down the street and when the cost of living goes up, there's pressure to increase wages. Inflation is the paradox and the scourge of capitalism.
@@louisepalma6951 seriously, we should be paying these people nothing. they should work for free
Supporting a family on a fast food job in LA one paycheck away from homelessness is not smart. Move people, there are so many way more affordable cities across the country yet they act like they have no choice. You're screwing yourselves by staying there without the skills to get a higher paying job, self-inflicted pain & not fair to your kids.
It cost money to move I'm trying to move estimated cost 3,000 so someone on minimum wage couldn't afford that
@@daniellebrooks7510 There are lots of assistance programs & non-profits & churches that help if people are willing to accept the help. If you really want it, there are people that will help. It is not smart to stay in that situation, especially with kids, knowing it's not a matter of if but when you're forced into homelessness because the job cannot pay the bills. Too many people refuse to leave California because that's their roots, got it, but constantly worrying about when it's going to happen to you is no way to live. I hope everyone the best of luck, but moving out of a high cost of living area is the smartest move for low skilled workers in today's Inflationary economy.
@@daniellebrooks7510 What type of skills and experience do you have? You realize that some out of state employers will cover your expenses for attending an interview, even if you don't get hired - and if you do get hired, some companies will also offer relocation assistance. When was the last time you undated your resume and started looking for work?
@@eastbaykidd8574 why are you making this about me I'm pointing out it cost money to move so low income ppl may feel stuck
Way easier said than done
The problem it’s IRS. Taxes
Not a living wage they cannot afford to eat at their own restaurant.
$20/ hour?!?! -- so low
Yet Gavin's friend that owns a bunch of paneras gets a break?
Your burgers will be made by Skynet robots because humans are too expensive.
Skynet wont mess up my order.
@@d.b.1176This.
I used work on a subway restaurant and the manager call me to back and she told me,
You are fired 2 more worker were fired too
and I do not have a job 😔
When was this?
@@danmilosevich on January 30 2024
@@jenniferalbarran7605 well good luck in the future. Sorry to hear about it.
GOD Bless you, Jennifer.
@@GoldAceNews thanks 🙏
Maybe Starbucks barista's will postpone their efforts to unionize now that they're making a decent living wage.
Starbucks people are outdated, out of all the chains, Starbucks is the easiest to automate and layoff everyone.
No, they'll still do that and ask for higher wages 😂
More per hour doesn't mean more take-home
Passing that cost on to consumers is crap, if your business doesn't make enough money to pay a living wags, then close your doors. Plus, where are all the people outraged by corporate subsidies these companies benefit from?
You do realize a lot of these businesses are franchise by individual owners. I was part owner to two different local restaurants and I put up my life savings to have 2 to 3 years of no negative margins and broke even by the 4th year just to earn 180 to 300 dollars a month on my investment as a part owner. So in the end it’s more risk and strain on the owners and franchises. To cost 4 dollars more on top of the forced insurance, rent, fees, utilities, supplies and other unforeseen expenses that counties or state may leverage on means a lot businesses will unfortunately have to close shop.
Franchises are overpriced and overrated. The parent corporations have rigged everything in their favor.
Take a course on business my dude. Than you will change your mind and go man California is dumb
They have 4 kids and those kids have no father or hsve 4 different Fathers kept your legs closed Msybe that might help
Funny no one says that to the white family who just had 20 kids the duggars
@@daniellebrooks7510 I would say that to any women, white black or otherwise. Don't have kids unless there's a man in your life to help you raise them, that's just common sense.
@@eastbaykidd8574 it's plenty of single rich women with kids it's a problem when minorities have lots of kids since it's no backlash over the white woman online with 20 kids by 20 men
@@eastbaykidd8574no, common sense would be to don’t have kids unless you’re able to provide for them ,husband or no husband
@@daniellebrooks7510 Seems you mistake single divorced women (who receive court ordered alimony and child support from their ex-husbands) with single mothers who never bothered to get married in the first place. As far as this supposed white woman with 20 kids by 20 men, if she does really exist. she's such an extreme outlier (your understand what that term means, right) that she's statistically insignificant. In addition, can you identify what single demographic has 70% of its children being raised by single mothers?
the poors are at it again in the comments arguing with eachother
The $20/ hour law artificially inflates, so the board members raise prices instead of bearing the burden. The law should have made corporations pay a percentage of the profits for each tear of worker
Finally a interview with a employee
They better start raising nurses wages fast. Nurses are looking for a better wage! If they continue at this rate, there will be no in house Nurses. They will all be registry! Meaning they will pay double and triple! Stupid companies/ corporations! They better address the elephant in the room!
If Newsome really cared about Californian fastfood workers he would lower state taxes. An extra 50 bucks on the paycheck would go a long way.
They really should have levied a heavy tax on companies that replace more than 5% of its workforce with automated systems in a given year. Cutting into corporate profits without protecting workers was not a smart move.
ummm 8 years delivery hmm
job a job each own situation but okk
I was shocked too, imagine working as a pizza delivery guy for 8 years.
Stay single lady no kids don’t cry
That’s impossible lol. There are always accidental pregnancies. Especially among the black and Latino communities.
I really don't get it. Why not just move out of CA and live in a state where cost of living is much less.
Working the counter at a fast food place was never ment to be a life long career that provided a living wage.. Now they can all go on unemployemnt and the woke joke of California can go more in debt..
Some ppl have criminal records
@@daniellebrooks7510 and your point is?
Imagine telling someone who works 40 hours a week is not entitled to a living wage.
@@taxfree4603 imagine a life career flipping burgers. What about the workers now at a min off $16.00. Wages are to be commensurate with skill set.
@@danmilosevich not everyone has the capacity to be an engineer, or a doctor. just because you are getting paid 16/hour doesn't mean that is the value of your output.
People don't understand the full out come of what they as for...she get 20$ he get payed off...corporate America charges more...everyone losses. Sad!
Get ready for the layoffs and losing employment for the robotic kitchen technology. Good to invest in those stocks
So a $20 little mac will cost even more? That McDonald's owner acting like she don't make money, really? How'd she buy all those stores?
The rich will never give up their mansions. You're a fool if you think that. Also, she manages, not owns
It takes years for a franchisee to break even. And the average fast food franchisee makes $80,000/year. Some make as much as $150,000/year, while others make as little as $30,000/ year. These days, even $150,000/ year is not wealthy.
In the meantime, Democrats have no problem with millions of fat slob public employees working for non essential agencies making 6 figure incomes for doing little or nothing.
Big mac is just a double cheeseburger with an extra piece of bread in the middle.
Long ,long,long due. Cheapskates,they work very very hard,
Does she not understand that raising their minimum wage is going to raise the cost of other things to offset your new wage???
I have my own business so I can tell you business owners don't pay taxes so why can't they give their workers raises
@@daniellebrooks7510 Thanks for making it clear that you don't have your own business at all. 😆😅🤣😂🤣😅😆
@@daniellebrooks7510 business owners don't pay taxes? Nice of you to broadcast that. I am sure the IRS and the Franchise Tax Board will be interested in that fact.
@@danmilosevich you don't think the irs knows that???? They just announced they are going after 1000 millionaires for not paying taxes in years it's no secret to anyone except you if you own a business you write off your expenses then you don't owe meaning no taxes it's simple I made 85,000 and i had to pay 60,000 in expenses for my business so my taxes were 0.
@@daniellebrooks7510 audit time. Irs does not like a business lossing every year constantly. Lol. They will catch up eventually.
The employees of California Fast food restaurants will overwhelm the California unemployment offices (EDD) soon due to layoffs and cutback hours because of this. The fast food restaurants were never meant to be a career for regular employees it's a starting employment opportunity for teenage and young adults starting out to "move on" to something better.
I "called" this when they wanted a $15/hr wage then that wasn't "good enough" they got it up to $20/he soon they'll be wanting $25/hr and so on and so on until they shut down for good. If there is no profit for a franchisee then why be in business
Good job in making big companies richer! $20 minimum wage = $18 for a Big Mac.
Ban price increases to offsst manadatory increases in pay. Also banned firing of employee for a set amount oc time as well
Guess you never ran a business. It’s not sustainable. Business owners don’t go into business to lose money. There is very little margin to begin with.
What this means? Mass layoffs, that’s what it means.
Here come the robots and AI. For the first time I feel bad for these businesses.
I miss the dollar menu so bad when I was homeless
8 years delivering pizzas 🤣🤣
I don’t think it should have been statewide. Minimum wage should be tied to local costs of living. Treating every local economy like it’s LA is a recipe for disaster.
I see it like this we’ve been doing it one way for a very long time… let’s try something new and if it doesn’t work it doesn’t work.
But the important thing is we’ll know what works and what doesn’t.
If restaurants shut down, so what they shut down that just means their business model was not profitable. Capitalism right.
Fast food has never been a source of windfall profits. It was sustainable when stores were managed by competent people and wages determined by the marketplace. You seem to have this idea that employers should be forced to pay people more than they are worth. Apparently you're not bright enough to realize that such an approach never works in the long run.
Low income earners often rely on cheap fast food. That is another issue in itself, but it will hurt them most when they raise prices or shut down. That is the true outcome of the experiment. An idea might be to get kids out in the workforce to learn the value of work while still not paying their own rent. As others have stated, these jobs are not meant to sustain an adult career in most cases.
@@mjgoffice Good points, but what I have found interesting the the arguments of the pro-$20/hour crowd is that they focus on career employees, and completely ignore the REAL value of a fast food job, which is a foot in the door and an opportunity to prove one's self in the workplace. There are plenty of people in so-called "creative fields" such as actors, writers, musicians and comedians who will start out working free or low-paid gigs to gain the exposure and the experience. We know of barber and cosmetology schools where the students perform the work at lower wages so they can gain the experience, so why in the fast food industry do these activists expect that somebody off the streets with NO experience whatsoever doesn't receive some type of benefit from being able to start work at a more modest beginning wage?
These workers “may need” it but they don’t know the consequences with a 25% wage increase. Businesses have low margins and there is no way they can sustain this. The person in the beginning of this video will lose her job sooner then later.
What's the point of a raise if you don't have a job anymore... guy is on point he was hustling pies for 8 years probably not an easy job, but working it hard, and now he doesn't have one anymore...
it will push these stores to automate many process and start laying off people. I already see many stores have customer order from the screen.
the stores are already in the process of automation
Start lowering cost cause 20 a hour going to rise the cost of everything else.
Not smart.
Think people!!
Lower wages and cost.
What happen to go to school to get a better paying job?
$20/hour is really great, only IF you are working. In the long run minimum wage workers won't come out ahead. This is a gambit by Calif's Gov Newsom for his union supporters. In the midst of this death spiral, the mom & pop businesses will struggle in more, even thought this law on the sufrace only affect fast food companies with 60 or more workers, those businesses sill still have to compete against those national fast food chains.
Youll be fired or have your hours cut so in the end youll be making the same if not less 😂😂😂😂
The woman at the start of the piece is irresponsible and it’s not the public’s responsibility to assist her!
Just wait and see, soon they’ll start complaining that they need $50/hr to flip burgers. AI and Automation can’t get here fast enough, automate it all! Lookout the $30 Big Mac coming to McDonald’s ‘value menu’ near you 😅
eat out less......so simple
what happens to the worker that was at $23 per hour? do they get a $4 raise?????
Fast food isn't a career. Everyone else pays the price. 1,200 got laid off day one. Congrats, you get 20.00 per hour. You're fired. Can't afford to keep you employed.
Why not 100
Prices are going to rise more and more $20 will be equivalent to $8 so they and everyone else will be further behind
It’s about time they raise minimum wage for fast food workers to $20 an hour. They should raise minimum wage to $20 an hour in all countries like Canada and USA.
Are u ready for higher prices and high un employment 😂😂😂
@@Sataka23clips Australia has a high minimum wage and unemployment is low there.
@@IndianCurrycel Australia has a much tighter labor situation than in the states. Having a much tougher immigration policy while being on your own continent surrounded by shark infested waters makes a big difference in the supply and demand department.🙄
@@stanr8946They also have a population that's 12,143,636 smaller than just California's, but think their flavor of statism will work 1:1 in a nation that has 307 million more people in it 😂
We’ll there goes fast food joints in California. Now she won’t have a job and she’ll be forced to learn a new skill
Hope California enjoys spending $20 for a Big Mac
Then eat at home
Either restaurants go to full automation or they close down and people get fired lol
I'm baffled at how many people hate these workers. There's even a sort of schadenfreude going on here. Are they greedy? Or are they trying to live a normal life?
We humans are absolutely ok with one guy hogging billions for himself. But don't dare a peasant desire a bare minimum comfortable life, oh no, here we draw the line. They should get by with the absolute bare bones minimum, then we feel "the order" of things has been restored.
Good to see someone looking at the other side. I guess most people who sympathize with workers are too trying to make it to be following these stories and trashing minimum wage workers.
Sorry but liberals don't know how money or businesses work my dude
Now she has to pray to find a new job 😂😂😂
To the lady with 11 McDonald's if we check your social media post will we see an extravagant lifestyle or will we see your so called struggle?😂😂😂😂😂😂
I think your afraid that all might go away
they have to interview the single black mom with kids who works minimum wage? lol To be honest, fast food isn't meant to be a career.
Looking forward one year in the future these fast food companies will lay off employees or just fire them, due to high prices and less foot traffic
The only people employed in fast food should be teenagers
Enjoy that socialism 😊
Called good old mix economy back when these jobs were considered high paying jobs. before they forced the minimum wage first time job false narrative.
@@angelmendez2211 when was flipping burgers at McDonald’s considered a high paying job? You are out of your mind.
You don’t know what socialism is
@@GT5005 Just look at old McDonald commercials and them saying a good paying job with many benefits. Build your "CAREER" here.
Simple solution if you can’t afford to live here … don’t.
Please follow up with Alecia, I bet she’ll have press on nails as big as her head and all the hairstyles.
Replacing people with technology? What's point of rause then?
it's just 20 dollars that are you all complaining about, times day and in a future in 2044 the minimum wage will go up 30 every 2 or 3 years the minimum wage will go up, it's called evolution.
It's called the evolution of inflation.
What this means is 1 less Ferrari for the CEO
This is normal. Whoever side to those corrupt corporation wants bare minimum
😂
I remember when they were hailed as essential workers, yet when it comes to compensating them fairly, everyone seems to disregard their worth.
The only fair compensation is what you are worth to your employer, and what you can negotiate on your own without someone else forcing your employer's hand. Got it?
@@eastbaykidd8574 We witnessed throughout the pandemic the indispensable role they played in business operations. If that's not proof enough of their worth, I'm not sure what else is needed to justify paying them more than they're currently receiving
Everyone was just being fake 😂. No one actually cares. Rich owners will never care about you either
looks like theyve negotiated themselves to 20$ got it? .. so dumb@@eastbaykidd8574
Why bit 17 or 18 an hour
A the jobs go bye-bye... flush
20 bucks is too high. this causes businesses to cut back on hiring
hahahaha deadass these are teenagers/college student jobs. they were never meant to be a career you lived off. her crying is gonna get worse as they start laying off.
Greasy Newsoms activities
Time for a massive boycott. Top to bottom, this is nothing but good old fashioned American greed. Corporate AND Labor.
Yeah, I guess businesses should operate like government, over staff with incompetent diversity hires, pay them far more than they are worth and lose money.
Oh, but then they would all go out of business! Then what?
Make California FLORIDA
Fire her😅😅😅
All these billion dollar industries they could afford this of course there profit will decrease!!! But it’s right thing too do!!!
Except the stores are not corporate owned, they are individually owned by franchisee who sometimes are barely making a living or even less than employee. As en employee you simply show up and expect a pay check, but as a store owner / franchisee, every day the store is open their fixed cost of buying ingredient, payroll, rent, utility is probably as high as a few thousand, even if there is no customer in the store at all.
@@AA-kj4ic i completely agree with ur point of view I feel if a company can’t afford a living wages they shouldn’t be in business, not employees fault they shouldn’t carry the burden.
Have any proof they can afford this? Let's see your numbers.
@@Ericsaavedra1 By that same token, you realize that you're also saying that if somebody can't provide at least $20/hour to an employer, they shouldn't have a job either, correct?
@@eastbaykidd8574 aye this is California it’s is expensive employees ain’t slaves, if I’m correct wages should have gone up long time ago by the fed standard it long over due.
I just love how everyone thinks large companies like McDonald's can afford that $20 raise, Just like the UAW who felt the same way, and in the UAW case it cost the big three 1 BILLION dollar for each of the big three auto makers and since the UAW contract was approved the big three have laid off over 500k in employees and the big three are planning to move its operation to Mexico
It is the franchise owners who have to raise prices in order to cover the minimum wage hike, not the corporations. Fast food restaurants run on a razor thin profit margin. The average fast food restaurant owner in America makes am average of $80,000/year. Some make as much as $150,000/year, while others make as little as $30,000/year. Feel free to look that up.
Meanwhile, Democrats who are always screaming about corporate and business owner "greed" have no problem with millions of fat slob public employees making 6 figure incomes working for non essential agencies that no one has ever heard of.
Oh, and BTW, a friend of mine was a big shot for Ford Racing Development. I asked him once about how much the union assembly line workers make. At that time around 15 years ago, the top pay was around $31.00 an hour. But with all of the perks and concessions, including up to a year off with full pay, the total labor burden paid by the Big 3 automakers was $83.00/hour. No doubt it is much higher now.
@@mkay1957 Hey thanks for the update and thanks for replying
I love how your so ignorant you dont realize you can literally look up McDonalds balance sheet via their stock ticker and CLEARLY see they DO have the *money*
@@carpelunam 1st off companies like McDonald's are there to make money for there investors / stock holders who invest millions of dollars each year to grow the brand and make it profitable, that money you speak of is not extra money to give out to employees rather it is to pay back stock holders via dividends just like other
companies like the big 3 auto makers You are talking about McDonald's corporate stores and not the franchises,and we are not only talking about big companies rather smaller operations that may only have 10 to 30 stores that fall under this new wage law, franchise and smaller businesses will uselessly work on a 2 to 3% profit margin
and the latest numbers coming out of California on massive lay offs and businesses closures are backing up what I stated earlier. The only reason California raised the min. wage law is because the state collects state tax on that $20 per hour wage. and what you will find is states that collect state income tax will always raise there hourly wage making it look as if the state is helping the average worker but they
are not. Always remember this the owner of any business has the right to make a profit and the employees have the right to be paid for the hours they work. Some where along the line employees felt that they were due extra pay because the company made a profit, but in reality they are not / never entitled to any of a companies profits.
And this is were ignorance and stupidity come into play. thanks for the reply and the lesson from me is free.
But the real question for Anisha is:
Where is the father of your children?
And stop praying and start doing better.
He died in the war fighting for your country.
@@carolynharrison6987 Sources and cites? If he did, she would have benefits to support her and her children until they turned 18.
@@eastbaykidd8574 tell her that
I don't know this woman and neither do you. My guess is as good as yours and it's neither of our business.
Why has she been working in fast food for 3 years
Ppl have records
@@daniellebrooks7510 Hmm, maybe that's a good reason to refrain from criminal activity?
Where do you work? Because that comment gave me hobo vibes. 🤔
Love it
Pizza Hut laid off the drivers because they know people are ordering through Uber eats and other food ordering apps. That comes with the driver who will pick up the food and deliver it to the buyer. It only makes sense for Pizza Hut to lay up all of their in-house drivers.
Thank you. I argued that with somebody who insisted I was full of it.
Why is she crying?! She needs to get a degree and find a real adult job like everyone else. So dumb this law
Communism is expensive.
McDonald's billions served everyday they have the cash lady
Exactly
They, as in McDonald's have bills to pay. They have vendors that need paid.
@@daniellebrooks7510 You really believe so? I'm willing to bet you can find a P&L statement online from McDonalds Corporation somewhere to back up your claim, so why don't you share it with us?
Still make money @@danmilosevich
A tax credit would have been a far better move. This is just political and makes Newsome look good. Get ready for $20 Happy Meals.
The reporter looks like Tulsi Gabbard.
why are we paying people more money for a low skilled job? Go to school and find a better job. This is ridiculous. Now she wont have a job at all because AI will replace her
bro, use literally *any* other argument than "go to school". higher education is insanely expensive and will probably just put you in debt forever
Robots are going to replace you
California is hilarious.
"Slim margins" are what exactly? She owns 11 Mcdonalds, is she making 80K a year? More like what? Couple hundred thousand dollars a year?
Major corporations like McDonalds will raise the price of a cheeseburger by like a buck, and that's about it. They were already trying to go for automation.
You're not very bright.
the problem is that the people buying mcdonald cheeseburgers are the ones that cant afford that extra buck. Instead now, the extra buck is gunna go to the 17 year old high school student working 2 days a week living rent free in their parent’s home
@@qicss Yeah fastfood is open during school hours, so please miss me with that "high school workers" BS.
As for someone who's been scraping by, I can tell you it's a whole lot cheaper to buy food from Walmart than to go eat out. And I'm sure even the most poor person who has a job can afford an extra dollar a week or 2.
@@mccalejk2 Actually I am. I'm not the one trying to help a 15 billion dollar profit company keep its' employees poor so they have to rely on government welfare that we pay for.
@@abdallaha92 Show me ONE fast food company that has a "15 billion dollar profit". You sure you're not confusing profits with revenues?
The effect will be this:
ua-cam.com/video/oJkQkr3Yy2Q/v-deo.html
Democrats war on the middle class.
War on the middle class where the working class suffer collateral damage as well.
Why is she crying?
Because that's their idea of logic.