Some fast food franchises start cutting jobs as California minimum wage increases
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- Опубліковано 1 січ 2024
- Fast food workers here in the Golden State are set to receive a major pay raise this year, increasing to a minimum of $20 an hour in California.
While supporters say this move is a long time in coming, others say this new law could end up hurting many of the workers it's intended to help. This major boost to fast food workers' minimum wage here in California is set to take effect in April. Already, though, some fast food chains like Pizza Hut are responding by cutting jobs.
FULL STORY: www.cbs8.com/article/news/loc...
Remember about 5-7 years ago when there was the big push for $15/hr for fast food workers? The first thing McDonalds did was install the kiosks to reduce the number of people needed to take orders. It’ll go something like this- congratulations, you’re all getting a raise to $20/hr. Also we’re reducing staff levels from 25 employees to 6. Have a nice day!
in sacramento it’s only order by kiosk now or drive through.
It’s either that or 30 dollar combo meals.
Shouldnt the price of food go lower then? low staff and dont need to pay kiosk a wage .The food price will remain the same even after this
Not only will they lay off workers but they will also reduce hours too. Plus costs will be moved down so customers will start paying more and the site will get less money.
Entire point of a business is to maximize profits.
Only time they're gonna lower the cost is if competitors lower theirs or the business is dying. @@zuramax2049
Imagine thinking your getting a big pay raise but instead you lose your job. Go California.... I bet all those pizza hut workers are real happy right now.
Yes I agree with you. California Voters am really are idiots aren’t they.
All to protect the higher-ups insane payroll 🙃 Watch as they increase the price of their food to "accommodate" the increase pay
Stop blaming the working man asking for decent pay and start blaming executives who refuse to take a pay cut.
@@Toastybees all that whining and now you don’t have a job hilarious
@@Toastybeesoffer a skill set
California can choose to ignore federal immigration and drug enforcement laws, but it cannot ignore the laws of economics.
Food inflation is unreal and it will get a lot worse from crazy wages. The good news is that J B will be ousted in Nov.
Food inflation is unreal and it will get a lot worse from crazy wages. The good news is that J B will be ousted in Nov.
Food inflation is unreal and it will get a lot worse from crazy wages. The good news is that J B will be ousted in Nov.
If gavin Newsom wants to help he should of passed rent control years ago. Instead today over 9,500 jobs have already been wiped out in socal.
When I was in high school many of the the people behind the counter at fast food restaurants were my classmates. It was how they made their spending money. A lot of them went on to become business owners and professionals in various fields; medical, attorneys, broadcasting, etc. Flipping burgers was never intended to be a career move.
We said, fast food was always a side job for students in school. It was never intended ro support a family.
I just watched 'Fast Times at Ridgemont High' again recently. It really struck me how fast food workers used to all be middle class white high school kids.
I went from working at a supermarket chain to working in IT. I don’t have a degree, just certifications that I studied for online using free resources. I wasn’t waiting for a wage increase, I was educating myself in a field that has a higher earning potential.
Increasing minimum wage like this has its consequences, and will not really benefit you much. Poor guy lost his delivery job because of this increase. It’s a double edged sword.
You don’t have to spend thousands to educate yourself. So much free knowledge is available online. A couple hundred dollars worth of certifications can go a long way.
Issue is, with so much competition across all industries, fast food chains aren’t a side job for many anymore. I look at employees of these side jobs and they’re all older. My whole Wal-Mart is made up of employees who are 40+
I think the problem you are missing is that many jobs don’t pay enough for bills so people are stuck with fast food jobs that don’t pay enough. Not everyone has parents to pay for their college education, transportation, food, electric, and housing. The jobs that do pay well require education or lots of experience or combined with connections.
You know, I just experienced this literally yesterday. I went to a Mc Donald's and the place closed crazy early. The workers told me it was because the owners cut the hours of the place to save money.
That's right. It changes the math for low volume times of day. Increasing the cost of "keeping the doors open" makes it unfeasible to stay open longer.
Every business owner knows what his minimum income is required to stay open. They aren't in business to LOSE money.
I'm sure other stores in the history of stores have closed early/opened later to save costs. If the McDonalds you went to gets very little business in that hour(s) before they close to the point where they may lose money by staying open then it makes very little financial sense to stay open, now if they do have a ton of business in the hour(s) they're getting rid of then that's them being stupid and using a increase in the minimum wage as a bullshit argument.
@@Mike__B It's still reducing paid hours for someone. And it requires MORE business to make it profitable to stay open.
And THAT is the problem with "minimum wage". Raising wages without an increase in productivity or revenue causes business to raise prices and/or cut expenses.
Stupid laws have grave consequences.
Guess what everything is going up 💰Happy meal will be double the price 😬
I'm a Californian and I have been telling people for years that raising the minimum wage will make it worse and end in job loss. Nobody listens 😔.
Am been saying the same thing but nobody listens. Now we are here and poeple now relize that its not good as they thought.
I am afraid you were wrong all along. The solution was to move to a different state ;) .
@user-ng3lk1uz6d all the democrat states are lol
I did, couldn't be happier. @@PANIC_aka_PinD
You make it sound like people didn't take into account and accept that job loss would happen. The minimum wage increase was supported in spite of it leading to job loss because it will still do net good. If you have to work 2 or 3 jobs 60+ hours a week to breakeven then losing your 3rd job to get higher pay in your other work is worth it. Also, the economy is still in a good position in terms of unemployment rate (in Caa 4.9%). If this minimum wage increase doesn't happen what you'd see given the increase in the cost of living is probably a mix of more homeless and more leaving the state neither of which would be good for the economy or small businesses.
What a shock. Who is the gov't to dictate policies of private businesses hiring and pay? I'll share what the result was for my wife, who worked at a major retailer that loved to brag about their paying $15.00.
Once that pay increase kicked in, she (and others) were now expected to cover the work previously done by 2-3 other associates, including all of the customers that they used to assist and all of their peripheral duties too.
THEN the management would ask her why she didn't get everything done, when they knew exactly why and 'wanted to know' why she didn't meet expectations. She quit not long after that.
When I was a store manager of a bookstore in Chicago and our min wage in Cook Co went up .50 cents an hour, I had to cut 30% of my payroll. So my employees working 30 hours a week were now getting 20-25 hours a week and actually making less money. Raising the min wage to $20 like that is disastrous !!! Stores and fast food places will shut down. Those jobs are entry level jobs. People shouldn’t be having kids and trying to support them on entry level jobs. I worked a McDonald’s when I was in high school. Then went on to community college, then a state college TEHN got married and had children. People are so backwards now and wanting college degree marketable job pay , to flip burgers. No
@donk8105Donkey response. I guess all of these Pizza Hut owners and other California businesses that are going to start cutting workers don’t know how to run a business. Good job missing the point
My elementary school teacher once told me raising the minimum wages won't solve any problems because to that means everything else will raises to. She also said that jobs like fast food workers aren't supposed to be jobs that a person can live off. That they supposed to be "starter job". That was nearly 20 years ago. Man, was she on point.
She also didn’t teach you the proper use of “too.”
It should pay enough that you can afford to live
Perhaps your elementary school teacher, and your elementary mind should of thought a little harder than 2 + 2.
Minimum wage goes up after,,, I repeat after years of loss of buying power. Case in point, federal minimum wage is still $7.25 after nearly 2 decades. Prices in those 19 states, where $7.25 is still the min wage since 2009, prices went up anyway!!!
No, they are not "starter jobs" Just because they offer part time jobs, they are not "starter" anything. They pay wages, the workers pay taxes, the company makes profits. = Real job.
I invite you and your elementary teacher to look up what the founder of minimum wage said it was for. Since you are not likely to do so, I shall place it below.
"It seems to me to be equally plain that no business which depends for existence on paying less than living wages to its workers has any right to continue in this country. By "business" I mean the whole of commerce as well as the whole of industry; by workers I mean all workers, the white collar class as well as the men in overalls; and by living wages I mean more than a bare subsistence level-I mean the wages of decent living."
Inflation is an acceptable risk.
It should pay enough, and be enough job security for someone who wants to escape a situation, but in today's day and age it isn't. $6.25 adjusted with inflation in 1992, you still had more buying power per dollar, than even now with most states offering $15.
minimum wage in 2015 was $9 in California. Now $20... That's fucking insane.
That $20 today is about the same as $9 back in 2015...
thank inflation
I'm not thanking inflation.
Though I do have two words for our Representatives. And it rhymes with pluck yew.
I got paid $13.25 for my 2016 high school internship.😂
@@prodigalpriest exactly. The democrats are horible.
Bottom line...higher wage equals: raised prices and then cut jobs.
not sure why this is a shocker. its just simple math, either the businesses will need to cut cost (staffing) or increase product price to sustain this mandatory expense increase.
Happy meal $49.95 large pizza $99.95
And your firstborn for a chicken sandwich and fries
Round table pizza 🍕, already there 😮
What's the issue
Eating put.should be
A luxury !! Hahha
Once every 6 months! To a year
No problm with thoes prices
@@t.g.5797you’re not a very smart person
Years and years ago my state upped their minimum wage by less than .25 an hour, I was working as a Wendy's assistant manager then. The night before it went into affect the franchise owner called the store I was at and told me to let go 4 people. Day shift would let go 4 people as well. He had 20 stores under his franchise and he let go 8 people per store for less than .25 an hour. I can only imagine how many people will be let go over this drastic of a jump. This is only the start of what you will hear throughout this year of 2024.
U
It's not the amount of the increase which matters. It's the percentage. California's increase is 25% (from $16 to $20). A 25 cent increase if the minimum wage is $1/hr is 25% and will likely result in huge layoffs. A 25 cent increase if it's $8/hr is 3% and probably won't result in any layoffs (it's basically an inflation increase).
Your old boss was definitely greedy. 20 stores?
@@charleslavoie5402 You must have some insight into the financials of that bosses operation that the rest of us missed. About 60% of restaurants fail within the first year of operation and 80% fail within the first 5 years because they just never become profitable. But sure, go ahead and assume that the owner is cutting service levels purely out of greed and not because he's trying to not have to close many/most of them down altogether.
Yeah greedy for money to open more stores so he could employ more people instead of what most people would do like use any profits to buy as many house and cars and swimming pools as they could and live like a king. This guy most likely works like a dog to employ those who's greed is for someone else to provide generously for them while they do as little as possible. Guess which kind of greedy person has earned my respect.
Minimum wage is for entry level jobs to help young people to learn how to work and how to develop skills in order to move on to bigger and better things. Raising it quite a bit more puts a burden on the companies and helps to promote inflation. After all of this the minimum wage earner makes more but it is offset by inflation. People making just above minimum wage get hit the worst because they lose buying power. It is simple economics that a lot of people do not understand.
That guy is right. Raising the minimum wage is just a band-aid. Same as forgiving student loans. In the end, the business wins and the average worker losses. Sucks that most people aren't forward thinking and only chase immediate gratification. Now they will get paid $0 per hour.
This will hurt the very people that it was intended to help. Politicians don’t face repercussions of their own policies, so they only push what sounds good to get votes.
this only creates a bigger need for under the table workers... why do you think they brought in 12 -15 million people
just like they did in the 1970s-1980s
You want these people to fall back on welfare? Because that’s where they’re going to be if we don’t pay them enough tp live on. Tell you what; why don’t you go without a raise for five or six years and then when inflation has eaten up whatever tidbit you managed to make then listen to people beat you down because they think they’re paying you too much.
Its not a coincidence that the fast food restaurants cutting job are the ones that make the worst product. Pizza Hut/ Carls Jr / La Pizza Loca and Arbys are going to cut jobs.
@@jaad9848 Because nobody wants to pay a premium price for a lower quality product. So if you can't increase the price, you need to cut your costs.
@@TwistyMcFisty Look at In-N-Out they are having no issue offering a higher quality product, at a lower costs, all while paying their workers more than minimum wage. The issue is their business sucks and places like In-N-Out will continue to eat them up.
As a scheduleling manager For Panera Bread I'm leaving the food industry. I feel so bad cutting hours to my regular good hardworking staff we can't even give them a full shifts anymore no more 40 hours no more 8 hours a day and I honestly I can't take it everyone is complaining about there hours coming to me but hey what can I do I'm just doing my job from the big bosses. Also I'm stopping going out to fast food joints, coffee shops and all that junk is just bad for the body. Time to step it and save me my money.
1950 to about early 2000 it was social understood that all fast food work was for teens and college , part time ⏲️......Federal Firefighters (wildland) make less than 20 an hour to put it in perspective 😮💨
It's cheaper to make your own fast food favorites and coffee at home.
Good for you for sticking up to the industry and taking care of your health!
@@prodigalpriest not by much lol
Never have gone and now never will go to Panera Bread
There is only one cashier now in the McDonald’s next to my home. 4 automated kiosks
A few years ago CA raised the minimum wage, and many workers asked to cut their hours in order to not exceed the amount they could earn and still keep their welfare benefits (Cal-Fresh, Medi-Cal, housing, etc).Employers were reported to be surprised at the request to cut hours. No surprise that jobs are being replaced by kiosks and prices continue to rise.
That's not just a few years ago, Walmart has been doing that since the 90's (maybe earlier), it's called the welfare trap. They didn't even have to ask their employer to do it, it was automatically done because the company doesn't have to pay benefits and leaves the taxpayer on the hook for additional subsidies. Food stamps is one of the few government programs that actually works as intended, and medi-cal is the best health insurance in the country by a long shot.
The answer is not to raise wages but to lower prices across the board, rent, cost of commodities, etc.
You expect landlords and manufacturers of goods like flour and sugar to lower prices?? Why would they do that?
Government control is what this country needs. Capitalist free market ain’t cutting it anymore. Look around you.
@@ceuser3555 well I agree, unfortunately. Can't let people just charge whatever they want, there must be some control to avoid price gouging
@@ceuser3555 I looked around the world, seems like the only working model.
@ceuser3555 Government control is what got us in this mess. Especially in California, everything is high because of government. Av state with more than a trillion dollars of unfunded pension, 60 plus billion budget deficit, and now illegals can access MediCal. A partially federally subsidized health plan, which means logical thinking, tax paying citizens from across the country are paying for California disastrous policies.
Well that is why bleeding heart policies rarely help ppl.
Regarding California's fast food wage hike to $20 from $16, a worker at McDonalds told me the franchise owner cut hours -- especially overtime hours which was $22, nobody was laid off, the prices were not increased, the restaurant didn't go out of business, and the workers are happier as they have a bigger paycheck without working overtime hours to pay their bills. You could even guess that the only major change is that the workers have to work more efficiently -- but they are able to due to not being as tired having 8 hour shifts rather than 12 hour shifts. Or 32 hour weeks compared to 40 hour weeks. And they are willing to work more efficiently as well because they are happier. If the restaurant owner is even halfway decent with math, they'll see that they can solve the problem by cutting hours not jobs.
Flipping burgers was never seen as a job that needs to support a family, send them to college and buy a house in Malibu . It was seen as a teenager job just starting out in life. I guess times have changed. I can cook a burger faster at home than to wait in a drive thru.
In the 1970's I worked at McDonalds as a teenager. At that time, very few people were working in fast food as a 'career'. Most were in high school or college. It was a great part-time job to work around the school schedule. The job wasn't meant to support a family on or to be a long term career (unless someone worked their way up to management). I see way less teenagers working at fast food restaurants now & alot more 20 or 30 somethings.🤷
Me too. I worked from McD's during high school and college. It is NOT a career. It is a starting role to learn about having a job. You do not deserve $20 per hour for asking "You want fries with that?"
This will make workers learn the true minimum wage... ZERO.
Ah cant believe ah cant support a family on mah job flippin burgers.
When manufacturing jobs get sent overseas that's what happens.
@@lenblack1462 We need to get back to AMERICA FIRST. Quit sending our tax dollars overseas. LOWER OUR TAXES. Punish businesses who outsource jobs. Make them pay higher taxes.
@@lenblack1462 Thats part of it. Another reason is so many kids dont want to go into the trades. The trades are screaming for new people. The kids that do go tho college are going into debt getting USELESS degrees that wont get them a decent job. A few young people I know who were smart enough to enter a trade are making big bucks.
I had a neighbor whose daughter got a job at Target about 3 years ago was real happy about it they were going to pay her $20 an hour she got no more than 12 hours a week, that's how they do things at Target everybody's part-time some girls get as low as 8 hours week, right now everybody's working one or two days a week after the Holidays but they're making $20 an hour 🤣
Target calls them "part time heroes"
I'd be working at 3 different stores then
That's how they did it EVEN before the wage was $20. You sound like you don't have experience working these shitty jobs. This is the playbook for these workplaces. Keep you part time. Keep giving low hours. No need for firing since they get no unemployment and this a way to get workers to quit on their own. You all wonder why support for unions and labor are at all time high. No one can live like this. Working 3-4 part time jobs. Having to fix your schedule to work with other workplaces. I would rather get paid $20 an hour and work multiple places part time than to get paid what were before.
@@justintime4408 working minimum wage jobs means you are still at the bottom - you will not be able to afford a "nice" living situation. You need to IMPROVE YOUR SKILLS if you want to climb the ladder. Learn a trade, get a useful degree, or otherwise do something for which other people will pay you.
@@mitchd949 Hot take: people who believe in labor know this. I still think people working these low wage jobs should be able to afford the basics of life. We aren't advocating for these people to live in mansions and take vacations to 5 star hotels. Pro labor advocates believe in a fair wage for hard days work. If you work 40 hours a week, you shouldn't be bordering homelessness. Like the guy said in the story, housing is out of control and that's another issue, but ideally, someone should be able to afford living in an apartment.
All of my chef friends quit their jobs when they found out fast food pays 20 a hour they demanded 25-30 a hour since their position is higher and has more headaches along with responsibilities. Now they’re working at a fast food place with a team with less stress less headache compared to a real restaurant. I quit being a chef to after 17 years now I’m a package delivery driver it pays more and it’s less stress . 10 of my friends still own restaurants and none of them can find a cook so they’re the chef themselves now . They tried hiring for 20 a hour but all chefs demanded at least 30 so that’s like almost 300 a day they can’t afford to pay it that’s why they’re cooking the food themselves now but not sure for how long .
thats so messed up‼People should stop eating at these fast food places. i bet they'll change their attitude then😡
I began my Aerospace job at 12.50 an hour. I retired with my last wage at $30+ an hour.
I made items for the Navy an Marines in 30 years of work.
How right is it for hamburger flippers to be earning $20 dollars an hour with no real skills?
I mean, I'd counter by asking how right it is for the national median house price to have jumped 700-800% between now and when you purchased your home (assuming that you bought your house in the 80s).
Like it or not, something has to give.
I remember fast food jobs used to be for High School/College kids and now people are raising a family with these jobs. 😳
Because boomers don't want to leave their high paying job's and they will hire family members and friends.
People got eat and even a fast food job is a job.
That's the problem
To be fair due to child labour laws many those jobs can't even be done by high school kids any more. You have to be 18years old to operate a lot of machines, 21 to serve alcohol or be responsible for management duties etc. The entire industry requires adults to run but pays them barely more than the teenagers.
@@JustaGuy_Gaminglitteraly this. You have to be 18 to touch any cooking equipment legally in all kitchens.
There are literally not enough students who want to work to fill these jobs.
The problem here is not how much the workers get paid. The problem is that the government is mandating raises for people who have not earned it through hard work and dedication.
ANY kind of entitlement is a recipe for disaster.
What they have essentially done is make every fast-food job that pays less than 40,000 / year illegal. Ridiculous "plan"
I worked at Wendy's when I was 18 and had just aged out of the foster care system. There is no chance someone like me would get hired if these are $20 a hour jobs. That's eliminated the chance for teens to get jobs and work experience.
The biggest problem with raising minimum wage, it is still the minimum wage, which means all prices will go up exponentially and anyone receiving minimum wage still will not be able to cover their heirs costs of living.
@user-tz5nf4yo3tJust another day in Commiefornia. 🚬
This is just about politicians passing ridiculous laws that are intended to keep them in power even when they know full well that the laws and the consequences from those laws are either useless and destructive. Ultimately, the people the law is intended to serve (minimum wage workers) will just be replaced with automated kiosks, robots and other technologies and procedures.
I just went to Walmart this morning and I only saw 3 cashiers while 90% of the customers paid at the automated kiosks.
I predict that fast food chains will be able to quickly jerry-rig a bunch of automated conveyer belts with low-tech machines that will quickly replace kitchen workers. People act like automated cooking would be impossible or on the level of rocket science when it really is not. I do not believe it will take a lot of computers, research and development to make automated cooking happen.
I would not be shocked if robots replaced actual kitchen workers within the next year.
That's wrong, because the cost of labor is only a share of the costs and not the whole of them. Inflation has been caused by the cost of materials, in that case the share of labor costs has diminished, so even if you raise salaries, the impact on prices would be less because the share of labor costs has diminshed. However, you can't raise salaries indefinitely because the share of labor costs increases, so any salary raise would directly affect prices.
@@Sesquipedaliofobia
Inflation is generated mainly from the Federal Reserve when they print money to fund ridiculous welfare programs, overseas conflicts, and the military industrial complex.
A portion of inflation derives from increased labor costs but it is not insignificant.
Even a number like 10% might sound insignificant to most people but if you re-frame the question another way:
“If your employer reduced your paycheck by 10% would you describe that as insignificant?”…
Then all of a sudden, that 10% is not so insignificant.
So choose your analogy: death by 1,000 paper cuts or get mugged by 100 robbers, eventually it all adds up and it is ALL SIGNIFICANT.
Isnt that the scare tactic rich people use?
what will end up happening is businesses will really extract exactly what they need from employees for an exact amount of time whereas before they would say “yeah whatever stay on for a full 8 hr shift” instead it will be “yeah we only need you for 4 hrs take it or leave it” every owner will be extremely tight w their scheduling and will look for any opportunity to mechanize whatever they can replacing more and more humans along the way. enough will do it to the point that all these people will not be finding jobs and unfortunately the entry level jobs for your average 16 year old will not exist. in the end it will hurt more than it helps but most people can’t think things through because they only have their emotion they can respond to and that’s the only way they vote.
LOL, THAT IS WHAT IS DONE.
Your employer lets you hang around for 8 hrs making money when you dont need to be? Isn't that evidence that he can afford to pay you more per hour? Profound.
@@RowdyLpx nahh.. ur not a business owner clearly.. if ur paying less u tend to let others do jobs u would normally do yourself. the more you pay the more work the owner does or they try to pile more onto other workers. end of day it’s a balance between time and profit. you should start a business, you will understand immediately what i said above.
The only thing that politicians care about is that they can take credit for the increase in the minimum wage. They are not the ones who get laid off.
I grew up in the 1980's My first job was at McDonald's for 3.35 hour. However this minimum wage jobs were meant for high school and college students on summer break or after school. These jobs were meant to be gateway jobs to help people get job skills and to have a paycheck to help with tuition fees. These jobs were not meant to be forever jobs with people way into their 60's working there. These jobs wee meant to be a stepping step to get job training until a person graduates from college then have an occupation that pays real affordable wages. I remember as a kid I had a newspaper job delivering to homes now newspaper jobs are taking over by adults. What happened to society were people are content with living mediocrely.
My friends worked fast food when I was a kid in highschool. It was never intended to be a career.
Higher wages mean cut jobs which means less staff which means longer wait times, reduced open hours, or close the business
Exactly!
I work for a market ,and union we make 20 am hr ,but only work between 28 and 32hrs a week and that's on a good week this isn't anything new the raise only helps if your fulltime and guaranteed 40hrs a week and company's will not do that because once your fulltime company have to give medical insurance ,use rather have companies give me medical than,a raise to say the truth ,America that's why other countries laugh at us ,because we love the,almighty dollar 🤣what a joke we are we need to read the fine print 🤣🤣again medical is more important than $
They don’t teach that at school. They rather teach men can be women and racism
Food is free. Go outside, turn over a rock, and you got a whole buffet.
Fock em
rip dollar menu, gone but not forgotten
Yep. Pretty soon it will be the $10 menu. Those will be the cheap prices now.
sad, lots of places now have 3 dollar menus
You're better to stay away from those food like products anyway. It's probably healthier to eat roadkill.
And prices have visibly jumped....No point buying crap foods at extreme prices.
Those that think this is a good idea even when it fails, will never admit they were wrong so I will say it for them. "They told us so."
I started at $2.65 (corrected) per hour, never intended to make it a career. Got me through 4 year university without a student loan. California is a wasteland about to happen.
ABOUT to happen?😂😂😂😂😂
Gavin .... What a Clown
Well Said !
Makes no sense. You seems to be part of the Problem.@donk8105
About to happen?
I called it lay off and leaving.
Governor must halt job cuts and fix fast food prices. The government should have been in control of the fast food industry a long time ago.
*so as they increase the Min/Wage the TOL will increase so when then.*
Bad news for sales, good news for public health.
The people getting cut from their jobs won't likely see an improvement in their health.
@@Btdenn123
Yea but a lot of people will stop eating big macs when they are $15 each $25 for a meal deal.
You mean good news for credit card companies, if you think these people will stop eating Big Macs over the price increase you’re dead wrong lol
@@joshuad1716
But the law drilled down to large fast food chains. They will definitely look at options.
@@jeffreywillis4258 More likely they will downgrade to the dollar menu. The people who will stop going are the people who are not habitual fast food customers in the first place.
LOL this happened in Korea years ago. They finally bumped their minimal wage from like an unlivable $6 to a still unlivable $9. But instead of employee empowerment, it just led to companies firing people
If I owned a business in the state of california, I would close my business down, move out of california and open a business in a more business friendly state, such as Texas.
By putting up minimum wage it will also mean prices will sky rocket to keep up paying for staff. We already have that problem here in NZ
Be like Venezuela 🇻🇪, hyperinflation
@@michaeltabanao8092 They should just make everything free then we can wait in line for days like Venezuela for gasoline.
They raise the prices either way though lol. Theres absolutely no reason why they cant pay their employees fairly without making it seem like it will burn down their business.
Most Americans are to ignorant to figure that out, woke schools.
@@cremepuffle If expenses stayed the same year over year, businesses wouldn't raise prices because a new business would come along and undercut the competition charging more for the same thing.
This also means that the business will also increase prices. The customers will be the one paying. Frankly, its a good incentive for my health not to eat fast food.
Damn that sucks and backfired but you good thing government call maje the employers give you your job back and hours
Skilled labor in California barely makes $20 per hour coming from an aerospace upper management person.. This will raise all wages. The real winners are people like me that own rental property. Competitive rent will increase and rental property values are going to skyrocket. I will do right and not gouge rents but I will certainly not give them away I will remain competitive. Raising minimum wage increases help the rich and just make things cost more.
I haven't has fast food for 12 months and I feel great, all that bread ,salt , sugar and oil is horrible
Yeah, I’m at about 3 years.
its called fast food cause its the fastest way to die
Yeah, paying employees $20 an hour does absolutely nothing about the quality of the food
Yeah if you have a slow metabolism and don’t work out stay away from fast food
@@thegoons3415 fast food isn't good for anybody, it's not just about the calories
Less staff. Less hours . Higher pay . Too good to be True.
How is this good?
What ?
Less sales 🧐
In any restaurant, if you raise the dishwasher's wage, the rest of the staff will get theirs raised. Prices keep rising and patrons balk. Personally, I don't patronize any of them.
@@rapinncapin123 it's not a good thing.
Fast food 20 a hour, skilled jobs like machinists, trucker, welder, construction 17.50 to start in California
In 1979 I made $3.50 an hour in fast food. Adjusted for inflation, that would be almost $15 an hour today.
They make as much as CNA health workers but don’t need to go through school for it and get registered to the state. Crazy 😅
I’m an hha health worker & I’m just as pissed
DAMN!!!!! This is REALLY gonna PISS OFF grocery store workers!!!
Everyone else has to match? Is that why I'm making minimum wage in a restaurant ?
Why stop at $20 make it $1,000 for un skilled workers
Bad move, sales will take major hits
$35.00 BURGER ( no cheese) & $12.50 FRIES + $18.00 BIG-SODA...-AND BARBY-BOY NEWSOM IS GONNA MAKE BILLIONS IN ''PREPARED/FOOD'' LUXURY-TAXES...FOR HIS ''*OUTHOUSE - PRESIDENTIAL RUN*''...AND SINCE WORKERS ARE GETTING $20.00 /HR. ...RENT IS GONNA INCREASE 20+ %...IS CALI..hahahahahaha...$5.50 GAL. OF GAS...HAHAHAHAHAHA..!
Are they gonna raise prices? I mean if theyre firing people to even it out then shouldn't they NOT raise prices? Or is this all about profit and not really about paying more?
When I worked as McDonald’s in 1990 the wage was $3.30 an hour.
Now you'd have to work 5 hours for a nasty Big Mac, without cold fries and watery soda.
And houses often cost $100K-$200K not $500K-$1 million+. Car prices, especially for used, were way lower. Heck, in 2008, dealers were offering two trucks for the price of one. People even worried about deflation. Also, in the 90s was talk of the peace dividend (cold war winding down) and then tech boom of the late 90s. I recall around 1998, gasoline prices being around 70 cents. Today, it's well over $3 in many places with some paying upwards of $5. It's all relative. If anything, the situation is worse now. $20 isn't all that much.
@@ronbennett7885 what was the peace dividend ? I dont recall that
Wow
You got screwed big time. When I started in '84 it was $3.35 an hour.
I remember making $4.25/hr at McDonald's in California, that was 23 years ago and the price for Big Mac meal was $3.99
Imagine that. Exactly what everyone said would happen. Soon they are all going to be replaced by AI equipment.
I work for the state of California as a in home caregiver and we had to fight just to get a raise to 16.50 we are responsible to care for the states elderly and disabled and yet a McDonald's worker makes over 3 dollars more than i do smh thats such bs!!!
I wish you lived in Australia. Care givers make good money, which you totally deserve.
Care taking is gonna be a booming industry.
Yes but you have Hours for full time work. Mcdonalds workers will Not work 40 hrs
So you are a government leech. You are part of the problem.
How about demand you get paid more.
And McDonald's workers don't get benefits like nurses.
Being a small business owner now is horribly challenging, employees making more money than most owners and the business owners are taking 99% of the big risks. Many small business owners are also doing all the jobs in order to pay the hundreds of bills and mountains of paperwork. Best jobs now seem to be local, state, national government jobs, everyone else seems to be really struggling.
If you have a state birth certificate. You are we the people. Read page 1 of California constitution to learn your rights. Also you can quit being a us citizen on form SS5 , line 5, mom checked us citizen in error to get your SSN. Check other instead. Now you dont need to pay or file income taxes ever again. If IRS sends a letter, just Check the box not a us citizen. The state government only tells us citizens what they have to pay employees. Use the California constitution to remind the Gov to piss off , we the people created government, we do whatever we wish.
And every government job is paid with taxes taken from people working in the private sector. More government jobs, less private sector, less taxes. This is why a socialist society cannot sustain itself.
"employees making more money than most owners"
Pretty sure most franchise owners make a lot more than 20/hr.
Small business or not. You have to be able to adapt to business changes. Also if the employees are making more than the owners you're not cut out for business.
@@beneg417 if the government is forcing you to pay high wages for jobs that aren’t worth it, they should get out of businesses.
The government never considers what response the public have to their laws. Fulltime employees get benefits- everybody got knocked down to part time. Manditory health insurance- rates skyrocket. Minimum wage hikes - mass layoffs.
The $20 minimum wage is just a sneaky way to gather more taxes.
The Governor played the Workers and the Unions knew this was going to happen. This is how you get people to join a union!
And to reinforce a quasi socialist government. This won't end well in CA. I'm just waiting for the In-N-Out double double to hit $8-10 (currently it is around $6 & 3-4 years ago it was around $4) & maybe this will wake up some people not to vote for the same stupid politicians. Edit: another food to look out for that might stir people up is Costco & Sam's Club's hot dog combo which still costs between $1.30-$1.50. If they increase that to $2+, the public might just might start thinking what's causing this increase especially if they notice that for some reason it is only happening in CA & no other state.
Unions are bad for society
This is exactly how taxes got started fooling the people into believing the government will take care of them. How many more countries have to collapse before people understand the democracy is just the blind leading the blind
You have to have a job to be in a union.
@@studleyjb3172 I agree!
Its been obvious for a while that this is happening everywhere. Self check outs .
Raising prices. Smaller sizes. Fewer employees. Talk about a death spiral.
It is not only hurting the small businesses and the franchises, but the domino effect will also change the high-tech companies preventing them from hiring, and massive layoffs across the board as an end result, and only the well-educated will have a job regardless of the job functions. Raising the minimum wage is a tipping point for companies to let go of unqualified employees. When the Government is involved, we all lose..!
I remembered working at an AM/PM starting off at $4.75/hour in 94. Every training and responsibility available I took and within a month I was making $6.50/hour. Some of the longer time staff resented me because they been there for over 10 years and only making $7.50/hour. They refuse to do the training or anything else. They just want their annual increase. Went and lot better paying jobs afterward.
Instead of forcing businesses to pay an increase minimum wage, the business should offer opportunities that if the employees complete would get an increase. This would give the employees more money and better trained employees to the businesses.
So sad to see so many businesses in CA have to close down because they could not continue the operation. My family used to own an Asian restaurant for almost 30 years. In 2008 we had 17 full-time employees. Then as the wages and cost increase we were down to just 2 FT and then none and finally close shop in 2018 because we lost thousands each month.
The goal of the democrats isn't to retain a workforce, it is to get people on welfare. That is something the governor intentionally did not state.
They’re flipping burgers what training do they need that would require any of that? For manager positions and up sure, this works. Just to be a cashier or stock it really would just be unnecessary.
Wage Increases of 25-50cents an hour are meaningless when taxes and inflating prices eat up more than that. When the wage increase you get to stay at a job is a pittance compared to the wage increase you get to job hop, there's a bigger problem.
Jesus Christ, imagine making $4.75 today 😂😂
Now you have entry level positions and basic jobs requiring years of experience for different things for minimum and low pay lol. It's only going to get worse.
It really boggles the mind to see how many people actually think raising the minimum wage will help them financially. When people say Americans are NOT financially literate, this is it!
Idk getting said more seems like it’d help my financial situation? We all know they cut jobs to be greedy and not for any real benefit to the economy
Well we see what not raising it has done to people…people who work 40 hrs a week can’t even afford rent. How is that right?
@@AndreaMalloyd The problem of artificially forcing a raise in the minimum wage will make all goods and services to be more expensive. The cost will be passed down to the consumer, which will make the minimum wage workers have even less buying power, relatively speaking.
@@AndreaMalloydYou said “not raising minimum wage cause them to work 40 hours a week and they still can’t afford rent”. But raising minimum wage will cut their hours and they STILL can’t afford rent. All this does is make our goods and services more expensive and it gives politicians more tax dollars. Congrats you solved nothing.
@@alexmendez3681than what do you suggest? I don’t see any options for these people to survive on their wages.
I’m shocked.....outraged....how could this happen?
Years ago, skilled/educated people worked for corporations and were well paid. Then computerization came along.
The business owners said "computers can replace these skilled workers and we can hire low-skill people to run them....and pay those low skill people next to nothing.....and we will get rich! We can hire a highly skilled CEO to run things from the mountain top... and pay him a great amount....and the rest, a pittance.
BUT THEY FORGOT that the people who the computers replaced still needed to eat, to have places to live.
So while these corporations added more computerization, more and more people had to take the low skill jobs that were left OR get themselves into outrageous amounts of student debt, in the hopes they could outpace being replaced by computers.
Now people live hand to mouth, live in their cars and on the street because apartments are so IMPOSSIBLY expensive...there is NOWHERE FOR THEM TO GO..
Computers were supposed to make life better but all they did was make the rich, richer. The same rich who will then scream "DON'T HELP THOSE POOR PEOPLE, GOVERNMENT! THAT'S SOCIALISM."
Someday, when all the people die off and the corporations have no customers to buy their products, they will finally understand what a complete and total snake-eating-its-own-tail this past fifty years has been.
I remember when we still had factory jobs, before sending them "off shore". Fast food jobs were mostly teens and college students who needed to learn what working a job meant or needing money to help while you are in school. Fast food jobs weren't something to be your lifelong work. You will bankrupt more businesses in more sectors than fast food franchises at that pay rate. Add to that the cost of health insurance and employers who were providing health insurance who no longer are able to afford to stay in business could put that cost on employees, absorbing the pay raise if a person wanted to opt in for health insurance. Of course, you can be sure that a state who levies $2.00 or more per gallon tax on gasoline so there is money to give to crooked politicians and fund illegals in their state doesn't really care about the slave grade workers in their state.
Times change. Values do too.
You're more concerned about profits than poverty.
@@scifirealism5943 If that's why you think your taxes are so high, cool. Just enjoy your life on the left coast.
@@markchapmon8670 you're saying poverty is acceptable.
@@scifirealism5943 Nope, I'm saying your taxes are so high because your political class is importing illegals on a massive scale and there's not enough interest to take care of the tax paying citizens. The money not spent buying voters is siphoned off by corrupt politicians. You can't pay enough tax so they will ever be satisfied.
I'm against raising it to $20 an hour. The reasons are many. It's inflationary, and only will make food prices rise. This effects seniors and those on fix income. Your raises will be only be eaten up by the landlords who will increase your rent. For employees, your hours may be cut or you will be let go. Fast food places aren't doing the kind of business they used to as prices have increased so much. When I eat my 2 for $3 at Wendys and spend an hour, I don't think they even make $60 gross in revenue. I don't see how they can pay 4 employees $16 an hour, $20 may put them out of business. What about the homeless. EBT cards only get them through 14-17 days. With the increase it will only be less. This increase will hurt more people then it will help. Maybe it looks good politically, but I'm against it.
You're more concerned with mitigating the risk of inflation than abolishing poverty
@@scifirealism5943 There is no such thing as abolishing poverty in a nation that isn't like North Korea. You can't have a free economy and then still support everyone. California already has a homeless crisis and it's about to jump even higher. I hope every resident there feels their stupidity when layoffs skyrocket.
@@scifirealism5943 raising minimum wage doesn’t “abolish poverty”, because it actually decreases spending power of your money. If raising minimum wages worked as you think why not make it $100/hr? 👊🔥
@ccsmith2937 because politicians don't want to abolish poverty.
Poverty functions to control workers, to ensure poor people must work "undesirable" jobs that rich people would never do themselves.
@@scifirealism5943 you will never abolish poverty someone has to stay at the bottom its impossible for everyone to be equal.
It's weird how other countries companies who pay their employees a "livable wage". Are not cutting hours for their current employees nor making their product much more expensive for the average customer. I just think this is a act of greed. Which is one of the big problem in this country.
This happened in Europe and the response was to replace people with machines.
The guy that used to work at McDonalds being interviewed said ‘come on, you shoulda done this a long time ago’. Doesn’t understand simple economics. That’s the problem, if would understand this, then you probably wouldn’t be working at McDonalds in all honesty.
It's going to take a little while for this profoundness to sink in for this guy😅
I clearly remember back in 1994 when i was a young shorty growing up i would go to the store and a can of soda pop only cost .50 cents. A bag of Cheetos cost .25 cents up until early 2000s and prices kept rising from there. Gas was only ~2$ a Gallon in 2009.
Hostess lemon pies were .75 now they cost 2$🤣
shorty doo wop
That's how the progression of time works
@@twinkslammer That's how greed works.
An occupation at a fast food place isn’t supposed to be a pretty pay. Anyone can work in fast food, some cases a middle schooler can. You don’t need an education, not even a high school deploma. Fast food, or obviously restaurants or stores should be expected to be worked by some middle schoolers, high schoolers, and people in college. I work at wendys, and I make 11.50 per hour. I think 12 an hour is more fair, since i’ve been working there for 7 months, but it’s whatevee
yep,,happens EVERYTIME the minimum wage is increased without fail.
Businesses are NOT going to just take that hit to their bottom line. There WILL be price hikes on everything everywhere minimum wage employees are employed.
What ends up happening is that new wage will buy you no more and more likely even less than the old wage did.
Do a bit of research and you will see this over and over again...but then a again no one ever listens or learns from history............
Already cost us $100 to eat at cheap fast food places in California for a family of 5.
Price hikes coming......customer pays
Now we will have to pay $20 for a Happy Meal.
Smart guy😏!!!!
😂😂😂 Lmao u got me!!!
Considering your already paying 2,500 for rent in California a $20 happy meal isn’t that crazy 😂
😂 You realize a lot of Californians can afford that..right?
Not willing to pay $5 more a meal means you view poverty as acceptable.
If you made $2.25 an hour in 1970. Your hourly pay today should be $17.66. according to the inflation calculator on the Federal Reserve Bank of Minneapolis website.
Second I heard the insane fact that minimum wage was going to be $20 an hour I knew this was going to happen. Is this even really news? I knew 5 years ago that when people said minimum wage should be $15 an hour that was a horrendous idea. I do think it should be raised to $9-10 an hour but $15 and $20 will just cause people to hoard groceries(causing grocery shortages very fast) and employers to lay off in a week!
Time to invest in robotic food cooks & automation... Thank your governor for loosing your Jobs.
I know he was pressured into it by the Unions, surely he knows how it's going to end up...I'm all for Unions standing up for workers but how many times have they demanded ridiculous salaries only to end up with people unemployed?
*losing.
Blame greedy corporations
@@scifirealism5943Do you have a job?
If yes, were you able to negotiate your pay? If you were able to, did/would you negotiate for the highest pay you could get?
Would you be willing to get paid less money so some of your pay could go to lower payed workers?
I’m assuming your only “yes” answer would be to the first question, no to all the following.
So, if you want the most pay for you, why should business owners not want the most they can make?
@garypiatt4666 I'm willing to make less for others to make more.
The answer to the other questions is no.
I was a cashier. My $17/hr wage proposal was rejected. I was paid $10/hr instead.
My "raise" was $0.50.
If I was in a union, or government intervention, or had welfare, I'd have enough bargaining power to make more.
I don't want to make $1 million per hour, but I don't want to work for minimum wage with zero benefits or chance for advancement.
Just wait, watch California mandate how many employees businesses must have, or mandate guaranteed hours for the employees. These people that lost their jobs will probably collect unemployment. That will cost everyone more!
Then every chain restaurant like burger king and McDonald pull out of Cali then no jobs and no "cheep" drive food, food.
@@9TDF😂 non of those places are cheap anymore and it is low quality food
@@Baker.Matthew
Still if they leave (in the event the government mandates number of employees, a minimum of hours worked it less food options and less jobs and less tax revenue.
Plus "cheap " as in should be cheap .
@@9TDF free market thrives when the greedy get too greedy, they will be replaced by other options for sure
@@Baker.Matthew There won't be any new options with to much government overreach.
It's McDonald, flipping burgers and cooking and putting together premade from the factory ingredients . It's not like welding, teaching, car mechanic or IT specialist McDonald work can be one day automated.
Eventually the grill, fry cooking, ice cream machine, food assembly and order taking could be automated.
Plus free market? The scenario where the government basically takes control and mandates 20+ an hour, minimum days and hours and minimum number of workers and possibly regulates automation with the whole purpose of keeping human jobs then that's not a free market.
Plus if smaller businesses and franchises take to big of a hit larger companies can look at that and choose not to expand in to arias that would be less profitable.
Plus some high school kid that wants a part time job probably won't be able to get one because a business might not want to take a risk on a new worker with no work experience .
Like we didn't know that jobs would be cut from this!
My first job as a late teen was at a Taco Bell (a very long time ago). I typed my wage into an inflation calculator and it came up at $13 per hour in 2024 dollars. If I earned the inflation equivalent of $20 per hour back then, I would probably think I hit pay dirt.
Define "a very long time ago". I want to see how you did your math. In 2024, $20 has the purchasing power of $5.34 in 1980.
For the workers who are left after the thinning out....good luck your gunna really earn that 20 bucks running the whole place by yourself. lol.
Right next to the robots they will be installing
@smiledaydreammusicandrecov4463 lol, you're an, well, not gonna say it, but it ends with 'iot,' and it's not 'patriot.' if you love those countries so much, why don't you go there? oh, yeah, because those 'paradises' actually have strict immigration laws and aren't fond of squatters....
@@terryowen6759 I hope they replace you with a robot.
@@ryder4508 cool idea...Boomer retirement robots
@@terryowen6759 😂
I hope all the good workers are kept and all the crappy ones are canned. Some of them dont deserve that kind of money.
Thats what will probably happen. The people they keep will just be expected to do the work of 2 people.
that never happens.
$20 is not even a lot of money, most of these wages just sound high because people dont factor in inflation over the years or they dont live in a high cost of living state and dont understand costs
@@Zero11_ss Raising the min wage also increases costs. So you are just making the problem worse.
Look at Venezuela, they raised their min wage multiple times in a short time because of inflation and all they did was make costs go up more and destroyed the middle class.
If you want to help people economically you create policy that lowers living costs. And lower costs starts with policies that lower gas prices.
@@Zero11_ss it's a dual income time we live in, I agree but McDonald's isn't a career, it should be reserved for people new to the workforce to help them get some experience and some cash. Then move on to a real job.
minimum wage looks like a good idea on paper but it causes more damage than good
In-N-Out Burger in California has been paying their employees $20 an hour for the last few years and you can still buy their burger meal deal for under $10
Man, it's almost like they didn't think it through...
And despite this, these companies will continue to make profits and lavish bonuses for their executives
if only people listen to brandon's heed of giving up mining coal and take up coding class instead.. jen psaki said so
They'll destroy the business before they take a pay cut in the c-suite
Build your own business, and you will do the same.
It's amazing that everybody is blaming the workers and unions instead of calling out the C-Suites collecting million dollar bonuses. This country is a joke.
And? Isn't that the point of opening/starting a business?
Let's be honest, too many fast food workers which i highly respect are asking too much when it comes to wage increases. A fast food job was never meant to become a high-wage job. It was meant more for high school students and young people who need their first job ever. If these workers want a higher payed job, they need to go to college or a trade school and learn higher-value skills.
Instead of forcing cost of living to come up and make those just above minimum wage now making just minimum wage. It's really a loss for everyone
Being unintelligent or incapable of finishing school doesn't mean that the person should live in poverty. The cost of living is too high - and if you look around... there are no teenagers at these fast food jobs.
The wage increase makes no sense when you look at a bunch of the other labor based jobs that AREN'T getting the increase, but here in my state... minimum wage is $7.25 and no one should EVER be forced to get out of their bed for anything close to that.
They work harder than a lot of people who get tips. Americans are cheap and lazy.
@@CanineGrowTime I never said anything about beind unintelligent or incapable or incapable of finishing school. You can't expect to work at a minimum wage job like a fast food restaurant and expect to be payed as well as a welder or a construction worker. I agree with you that wages need to catch up to the cost living but increasing wages in not the solution. People need to be given the opportunity to acquired new in demand skills that will alows them to apply for higher pay jobs but fast food isn't one of them
@@jacobperez8921or we can distribute the value created in this country more evenly. The wealth gap continues to rise overall and your worried about the bottom tier having more income? Caveat the market balances that portion, but the big problem is not fast food workers making 20 an hour, it’s the top 1% owning 90% of assets.
I own 3 locations. I will no longer have full time employees with this $20.00/hr.
Also, I don’t have to offer health insurance for part time employees.
This new law did nothing but cut jobs and even find ways to automate to eliminate those jobs.
We won’t take less profits.
We spent about $500 a month eating out, but not no more.