California fast food minimum wage: Here's how it could impact business and consumers
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- Опубліковано 31 бер 2024
- AJ Kumaran, Raising Cane's co-CEO, joins 'Power Lunch' to discuss the California minimum wage hike to $20 an hour and how it'll impact business.
This cat is just saying the right words for PR moves for now & doing something completely different in reality.
yep, hes hella smart and keen...theres nothing wrong with that but there is no free lunch
what he is doing is killing competition that is mom n pop shops. Amazon did this 10 years ago promoting 15 an hour wage. that killed small warehouse and mom n pop shops. forced them to use amazon services. and the people against big corp think they are winning LOL its sad really
Raising canes already pays their workers 18-19 dollars an hour anyway what one more dollar
Money is our God. 2+2= 5 if I say it is.
Yep, I was thinking the exact same thing. You know it!
He’s not gonna tell u how he really feels on camera
Right and obvious.
They always tell you everything is great right before everyone gets laid off.
and/or raise their prices... 2 months down the line of course... for optics.
Eat at home, healthy
I eat in the bathroom
@@FloridaMan69.Why?
When I was a kid 50 years ago there weren’t that many fast food places. We eat out maybe once a month.
@@MiturBinEsdertyI wonder where you lived then because in the 70's fast food was booming.
No one will pay 35 dollars for mc Donald's burgers that's what will happen
That guy is delusional. The prices at that place are through the roof. We don’t eat there. At the end of the day, it’s just chicken.
Amen, yes, he is delusional. I've only been once or twice, and it's not a place we can afford. Yeah, with the prior @RC prices of year or two back -- it's not worth going back.
They charge too much already, as it is.
Better than any chicken you’ll cook!!
Back east, this is very airframe affordable food
I love buying the 100 pack and a gallon of sauce and eating it for lunch for days
@@toolwithintention better, not a chance. Good luck with that lunch order and sauce. 👀
@@toolwithintention damn you are playing with your health 😂
💯
They make it sound so glorious. Wonder if they will feel this way when people stop going to eat at fast food places. I've already stopped.
Stopped a long long time ago...too expensive 🤣
Tried Raising Canes once. Mediocre at best and overpriced to begin with.
They are selling chicken middle fingers
I will go and eat at Raising Cane def
@@lowridingtrucks88 I just wish they offered BBQ sauce
Way overpriced. Not worth half of what they want you to pay. I went once or twice, and I've never went back.
@@PoeLemic Thank you.
small increase of 7%
7% to handle the initial shock .. let's here from him in 6-8 months
Next year it will be another7%
Fast food in CA started raising prices months ago.
No, fast food prices have increased for the last 10 years.
Fast food prices have increased dramatically since the 1990's.
Exactly people are already being ripped off
Months they been rising price every week...
That was just due to Bidens inflation... McDonalds and I think Taco Bell in some areas upped their prices by as much as $1.50 the day after the min wage hike.
If a franchise wants to hit at least 10% profits, and you tell the franchise they have to pay their 12 employees 25% more suddenly... That 25%(doesn't equate to 25% in total earnings obv) has to be generated SOMEWHERE to keep that 10% profits.
It's 3rd grade math... but since so many blue states keep reducing the standards to graduate, I'm not surprised so many "adults" in MY STATE, are this dumb to not grasp profit margins... or that min wage jobs AREN'T CAREERS. While AI is going to essentially replace EVERY jobeventually... there's a reason AI and Autonomy is going to replace those jobs first....
Chicken fingers, fries and toast is all sold in the frozen section. Raising canes is nothing great.
People are lazy and go there at 1:00AM for chicken.
Exactly. Kids go there to hang out, not to eat their cardboard food.
Went there it wasn’t that great never been back. In California.
People go there when they want easy food and good chick and good sauce
If you go to a wholesale food store, public market or meat store you can buy stuff like chicken fingers that are way better quality then any supermarket and get 3xs the amount.
Most people are taught that "you only need a good job to become rich". These billionaires are operating on a whole other playbook that many don't even know exists~
Same here, with my current portfolio made from my investments with my ersonal financial advisor (Gerladine lane) I totally agree with you
Wow! Kind of in shock you mentioned expert, Mrs Geraldine Lane. What a coincidence!!
YES!!! That's exactly her name (Gerladine lane) so many people have recommended highly about her and am just starting with herfrom Brisbane Australia
Life is easier when the cash keeps popping in, thanks to Gerladine Lane services. Glad she's getting the recognition she deserves
: I'm new to this and have heard that now is an excellent time to buy. However, I currently have cash sitting in my bank account tha I'mt I would really like to put to good use because inflation is at an all-time high. Who is this coach that you mention, and do you mind if I look them up?
I have lived in California for 47 years and haven’t heard of this company, not that I will be visiting. Go to restaurants 2 times a year and that’s it. No fast food.
it's high school cafeteria food, overpriced and stinks
Sounds like something easily fixed at home. Air fryer and frozen food at the grocery store. A bottle of sauce and I'm good.
Good for u California sucks!
You’re not missing much.
They are already charging high prices for chicken fingers. Been there once and will never go back. People are going to slow down on all these fast food places and layoffs will be coming
I don’t get how California thinks this is going to work? Everything will have to go up? So all these fast food workers will be in the same boat eventually and be wanting $25 😂
non of californian except those low educated ones think this will work
why not make it 1000, or 50000 per hour...it will just end up being the same way
They have already been paying to folks $20 plus an hour before the law went in effect
Higher min wage decreases others wage by making everything cost more. Kinda like everyone gets a trophy. They want everyone mediocre except the ruling class elite that live high promising to take care of you if you just vote for them yet keep you poor. Time for people to wake up and get off the government plantation and stop drinking the kool-aid
I don't know why anyone shows up for work if they can't afford a decent life doing it.
Atlas shrugged
It’s interesting how this Co-CEO needs to spin this like it’s not a big deal because of the network he’s on…
CNBC? LoL, you mean the business oriented corporate friendly channel? If it was really untenable, why wouldn't he want to whine about it so he can create public backlash to get the law repealed? Or is it just maybe possible that the law though impactful is not the end of the world?
@@GnomesRox good luck to you and California 😂 democrats!
@@thiskneegrow I find it strange that you think people in California need luck, as if living in a beautiful diverse state with one of the biggest economic and cultural powers in the world is somehow so terrible.
All of this will be passed on to the consumer. If you are a franchise owner and you cannot get a rate of return of 8-12 percent on the valuation of the business there is no reason to own the business. Why would you go through the hassle of owning and operating these places if you could just park your money in the S&P 500 and average 8-12 percent on your capital? Or just move to another state that is more friendly towards business owners?
100 percent this.
Yes.. he said that.. did u listen?
When I first had Raising Canes, 5 years ago, I was impressed. It was reasonably priced and the servings were pretty big. I recently had it for the first time in months. The chicken tenders have shrunk. Noticeably. The food was just eh. I used to pay $8.81 with taxes for a 3 finger combo. Now the price is over $11 and I am getting way less. I live in California, I mostly cook at home and do not like fast food very much. But now I am just done with it. With as expensive as it will be and quality getting lower I'd rather go to a casual dine in spot where the food is much better. There are plenty of those places around still. I guess I am thankful for Newsome's stupid new law, in the long run it is better for my health!
Capitalism babyyy!!! We love it!!
We are keeping our workers, but your chicken sandwich will be now 9.00 instead of 8.18 for a chicken sandwich, and if you're in the bay, that's 11.99 - nope !
Bohoo no chicken sandwich for the yuppy
$9.39 actually 😂
Well, you can buy chicken breasts for $5 lb...and cook them. If you make $60/hr, that'll cost you $120. That's how a lawyer thinks....of course he's making 5x that much.
This guy lies (says the so-called "right" thing) so much that I stopped watching the video.
You think we believe that you are "happy" that you have to pay your workers 25% more?
I don't want to work for such a sleazy person!
💯
Right?? Why did they wait for the law to kick in so they could do “the right thing” and pay employees $20+/hr?
Notice the part of the video where he has to admit he is only paying these higher wages in California where he is being forced to do so, the stores outside of California he is not paying that $20 dollars plus an hour.
@@mustangecoboosthpp3869 💯
Sorry for the seniors on fixed income.
Ramen noodles and 9lives keeps me going on the cheap. Cat food flavor is a small luxury I can afford panhandling by the local Walmart.
Yep
Why would someone on a fixed income be going out to eat?
why they eat fast food? wtf.
😂, they all getting fired. You can’t pay $23 an hour to take an order and serve drinks 🤡
So a person working there for like 3 years probably making $18
Are gonna have to get paid at least $22 because how fair is it for someone to walk in off the streets making $20.
Bet the homeless on skid row won't be applying in droves either
What a mess
A rise in wages will increase unemployment if lower demand results from raised prices.
Hey Mr Co-Ceo answer me this. Why do ur chicken fingers keep getting smaller and smaller if you aren’t changing anything??? 7 years ago when I first tried Raising Canes’s the chicken fingers were actually a good size and tasted pretty good. Throughout the years I’ve noticed the decline in food quality and smaller chicken fingers but the prices have gone up. The only reason i would go there is because my daughter liked them. She noticed a change too and haven’t been back in years. My co workers also have stopped going because the quality sucks now.
Welcome to capitalism my friend.. pay more and get less. It’s gonna be a fruitful journey.. strap on in and hold tight.
Th chicken fingers will become chicken nuggets 😅
@@JustBree716 lol 😂 pretty soon they probably will
well some chickens have small fingers.
I love how people say it’s easy to raise the wage and keep cost the same. Lies if you never owned a restaurant or business in general you need a reality check. I use to be part owner of two restaurants and it’s damn hard. I was lucky to make 300 dollars after two years of negative losses and risked over 200K of capital to start the business. So these poor franchise owners are going to be forced into a lose lose situation in the long run. Corporations won’t feel it as much if any but it’s the individual owned locations that will be forced to close doors.
They are crazy out of their minds charging almost 20 dollars for One meal in Las Vegas
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 soon coming to McDonald’s near you 😅
A fast food job was never meant to be a career. It was to teach people money management, and get them experience in the workforce. For the politicians to do this is ridiculous. If they want to help people make more money, they need to encourage big business to invest in the area. But instead, they just want to take take take until there’s nothing left then the whole system collapses and then they say we didn’t do anything. They never take the blame for what they caused to happen. It’s always somebody else’s fault.
Exactly
Why not ask the Co-CEO and other of these fast chain resturant CEO to tell us their yearly wages to see how much raise they get, matter of fact maybe ask them why are CEO getting a wage increase while at the same time raising the price of their food and then saying "BUT INFLATION!".
I'm sorry but a no skill ,high-school level job is not the same or as valuable as a CEO
I feel my arteries clogging up
I hope that as a nation we all boycott fast food or eating out in general & we send a big message to these damn workers.
Health insurance is more important than your pay, but asking for 20 an hour come on, man
THIS is why when I go to buy “cheap” food for my family at McD I could easily spend $45+ for 3 people.
It's cheaper to cook
I cant varify, but a friend of mine whom is a manager at mcd told me that they put 19 different chemicals in the fries to get people addicted to those chemicals.
@@wc4658Something about those fries gets me gagging after they cool maybe 10 minutes. The consistency changes and they are hard to swallow. Didn't use to be a problem years gone by. I really don't eat in those places much anymore.
Local McDonalds had a survey coupon on the receipt last month.
Complete the survey online and get a BOGO sandwich deal. 2 Mcdoubles for under 3 bucks. Had my own drink in my 12 pack cooler. 35 cents for 12 ounce cans of pop when you get them on sale by the case.
bro it was already 20 bucks for a meal before the wage hike....no way im going there now
Seriously.. place doesn’t even have good quality food & most the time the bread and fries are old and stale
I support their right to price themselves straight out of a job. What a dumb idea to demand $20 per hour for a low skilled teenage entry level position.
Its a combination of ignorance and lack of maturity. "I want/need more money than this job pays. Rather than acquiring skills that will land me a better job with better pay, I just demand you give me more money for doing a job a middle schooler can do." Demanding more money for a simple job, people are already having their hours cut, or the locations are just shutting down altogether because they cant afford to pay them the money they demanded.
Nobody will hire teenagers anymore. Most of them i work with are super lazy. You work hard, you get more money, the training is expensive. They keep the good ones
💯
You clearly have no idea how expensive it is In California.
@@theres1dent Grow up! Nobody owes you anything. You sound like you don't have what it takes to make it in California. I suggest you move to Alabama or some other poor state.
How bout we do some stories on all the restaurants that will be closing down. 7% increase in prices after already having a 10% or more hike in the last two years.
People need to learn how fast food works.
McDonalds is owned by franchisees.
Subway is owned by franchisees.
Dominos is owned by franchisees.
Raising Canes is owned by corporate
Chick Fil A is owned by corporate
Get mad at corporate, then get mad at the franchisors for charging insane royalties!
Used to LOVE Canes, but as a family of 6 we cannot afford them any more with their price hikes. We buy the chicken and fries frozen at Sam’s or Costco, make the sauce ourselves and say big bucks.
They raise the price 1¢ and I won't be buying😊
But you will be on your knees and Newsome will be infront of you. So it's a win win
To be fair I bet he gives some sloppy toppy
Good for this company!!! They made 3.3 BILLION in 2022. Some companies have billions in earnings but don’t want to pay more than $8/hour.
I always see about 10 people running shifts.. i wonder how this will play out
back in 2018 i used to pay 12 for caniac combo now is like $20 for my area here in cali
means nothing since workers are making more money than they were in 2018
Why did he wait to go to $22 an hour until the gov't made them go to $20 if he really cared about his "crew members?"
McDonald's prices in California have been threw the roof as if they were already paying $20.00 an hour look at at in and out been paying over $20.00
There combos are like i think $10.00 or less perfect
Instead of passing the costs on to consumers, how about these billionaires who own these major chain restaurants, use their salary to adjust the costs?
They don't even need to do that much tbh. However, that sounds too much like right doesn't it?
Yeah that’ll happen.. good one
You clearly don't know what your talking about, the majority of these restaurants are owned by local people who paid the corporation for a franchise license to use their name and products, you are hurting local families who own the franchise. Educate yourself.
It’s also a good time to put back home economics back in schools so people can learn how to cook a healthy meal. Fast food was a luxury when I was younger and should be treated as such.
That's only if your customers will be willing to pay more and alot of us cannot afford it Eating at home is what we will be doing more then ever Fast food is more about convenience and was inexpensive until the government stepped in to destroy everyone's lives.
EVEN AT $20 AN HOUR ... WHO can AFFORD to live in CALIFORNIA on that wage? Of course, a BUSINESS has a lot of OVERHEAD because of INVENTORY, SUPPLIES, EQUIPMENT, RENTS, UTILITIES, CREDIT CARD FEES, ADVERTISING, ETC. and, of course, WAGES ... and without some sort of "COST CUTTING" going "UP THE CHAIN" perhaps all that is left is PRICE INCREASE that many consumers WILL NOT PAY - and - ESPECIALLY with the HIGH INFLATION the economy and consumers have already seen!!! It seems more SMALL BUSINESSES and any type of "FOOD BUSINESS" is being PUSHED OUT OF BUSINESS! WHY, I wonder??? I suppose Governor Gavin Newsom wants everyone in fast food to go to work at HIS friend's PANERA BREAD ... everyone can get a "job" there where the Governor's RULES make sure they DON'T have to pay you $20 an hour!! For now ... every restaurant needs to buy a BREAD MACHINE.
Maybe the low information California citizens should stop voting Democrat as it is the Democrats who have caused all the high prices in the state.
Increasing your prices by 7%is a great value😂😂😂😂. Funny Kumar.
that place is gross and overpriced
The CEO's making $60 mill per year need to take a pay cut. Not raise prices. But people are too clueless to talk about this.
Went from $15 an hour to $0 an hour.. lol California never ceases to amaze with their stupidity
America *
You have to realize the "minimum" wage jumps from $16 to $20. So what happens to those already making between $16 and $20? Will their pay also jump by $4? Like if someone was already making $20 jump to $24?
Nope they got they asses 😂
A friend of mine works for a large fast food chain, her hours were cut off to 20 per week.
How about this the food that these fast food establishment throw away how about you charge a discount rate on the food that's that don't sell buy a certain time
"If they are eating... they find that a great value!" - real man of genius ....
😂😂😂😂😂😂😂😂😂😂😂 This CEO is acting as if he is the fast food workers best friend !
😂😂😂😂😂😂😂😂😂😂😂
In few years it will all be automated pay up it’s a luxury.
Some people can speak out of their imagination with full confidence like it really happened. Let's hope 50% of his story is true.
I can't understand for the life of me why anybody can purchase this chicken, it has no taste at all
The best I can afford right now is the Kid's combo for $7.99.
$23 an hour?
How much teacher's aid and pharmacy techs are being paid in California?
😂 How did this guy become a ceo?
Canes has also shrunk their chicken strips and reduce the amount of fries while increasing their prices. CEO is smoking weed when he says there is value.
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
wow, it sounds like every other fast food restaurant in CA is doing it wrong you wonder how can he do it when all the others seem to be having trouble
Ask him what his wage is
You can tell these newscasters eat out at fast food places at least twice a month. Very Relatable!!!
Funny how these fast food places never lower prices despite having record sales every year
Record sales and then a layoff as if they can do it again with less. That's how they do it in other companies, which makes absolutely no sense if they want to keep on making record sales.
Protecting margins means keeping those bonuses for executives by raising prices. Prime example as to why pay increases have not kept up with product inflation nor deflation of the dollar
That would be a 40 percent pay raise. How would the business pay for that?
Pay these ceo's 400 thousand dollars a year. Instead of 6 million a year problem solved.
Happy says the Indian scammer 😅😂
His smile is a big as his Newsome granted subsidies
@@tyrannyofalekhinei need some subsidies or food stamps under republicans.
He’s a well-oiled puppet
WOW. CNBC is still on the air 🤔
still the best one out there. trust me, rest is horrible.
I have no problem with min wage hikes. The real issue is all the hidden spending by governments.
My dairy queen order today cost nearly $17 for 4pcs of chicken straps and a small blizzard. This is in 🍁 dollars. Imagine someone who can only afford to eat one strip per day and maybe a third of cup of the blizzard per day.
You are ok with minimum wages hikes but you are not ok with the cost being thrown into the consumer? Unfortunately, it goes hand in hand so you will have to be ok with both.
Increased minimum wage will always equal increased price of goods.. the company will never bite the bullet.. we will
@@Positiveenergy68
Touche, but at the sane time we know the servings have shrunk. Ok, no problem with the employee getting more but not forgiving of the shrinkflation.
Cane's is a joke already. They've massively expanded right after COVID, gone down in quality since, and DRASTICALLY increased prices, about 68% since 2018 across the board. A box combo was about $7.80, and today it's $12.99. I will not be eating here again.
Yeah.. I’ve never seen a decline In quality of product (size,taste,preparation,etc) quite like raising canes.. and it’s definitely not going to be increasing In quality. Paying more for an inferior product.. capitalism!
The guy who founded Raisin Cane's just made Forbes' list of newly minted billionaires, same as Taylor Swift. Correct me if I'm wrong.
If he is happy to do it then why did they wait until they were forced, just be honest! It sucks
Working midlle class can't afford fast food price hikes. Reality will sink in when prices go up.
Just reminding those of you old enough to remember this( minimum national wage was 1.25/ hour) i was at a 3 store burger house and held onto the stubs ( yes real checks!!!!) so i could proove to my kids
33 hour pay check kept 32$ cash after taxes
Isolated price increase in California because of the change in the minimum wage law. Basically increase the wages and charge them more.
Unfortunately you cannot raise prices enough to offset the labor costs (outrageous to pay an entry level job $20 per hour); raising prices will have the impact of lower sales and lower frequency of visits. And since many fast food outlets have about 25% marginal performing stores, those will be guaranteed to close because the fixed costs cannot be overcome and offset with profit. Margins are already thin and the outrageous labor rate will destroy operators.
Thanks Governor now I could pay five dollars for just one piece of chicken. Thank you. You got a lot of brains. Unfortunately you’re not using them.
I make my own at home. Last time I went to Cain’s was months ago and had bad customer service.
Cut hours of operations...cut employee hours and raise prices
Their chicken sure has gotten smaller!
I used to work at this sham of a company, they marinate the chicken in water overnight. Todd graves shoulda stuck to salmon
I think the one thing nobody is talking about is, if you make more, you move up in tax brackets, and pay more in taxes. To me, this was more for the state of California, to be able to get more taxes out of workers. So in the end, nobody but the state wins...
I guess now that the workers are making that much money we the consumer doesn't need to continue to tip.
AI robots coming to a fast food joint near you.
This is sort of a best case scenario... but they will offset their loss by other states stores...if inflation continues they too will have to slow growth, automate, and shut down stores especially in California. All the CEOs must put best spin on a horrible situation.
This is great for California now they don’t need any more subsidized housing for 70% that receive it now?
California should be able to reduce taxes ?
$40 k a year for asking "do you want fries with that ?"...............this law was drafted by SEIU a labor union ,...............the nuts are running the nuthouse !..............there is a certain lack of knowledge in the world of unions. the marginal productivity of the unit of labor in fast food industry does not equal $20 per hour. ...........the magic will really occur when the wage is hiked to $25 or $30 per hour. perhaps A.I. will save us all with its incorporation to fast food stores. also, there are people who work on creating labor saving devices in the fast food industry. soon the we will be ordering from A.I. machines or robots , and machines will be preparing all of the food with a working staff of at most 3 employees. o.k. SEIU.........enjoy the kool-aid !!!!!
I don't believe anyone who keeps saying "honestly". Diversity CEO saying everything the woke media wants to hear. Just rename your company Raising Cane's to Raising Wages. Why stop at $20? Give your employees $50 an hour. See how that works.
Been to Cane’s one time….. it’s chicken fingers….. I’m not 5 years old….. again it’s chicken fingers
I like his messaging, I'm in California with a Raising Canes super close. I will see firsthand if this wage hike changes customer traffic or employee count. #ThatFoodieLife
Its not just the minimum wage.........if you pay the cashier 20 you then have to bump everyone. No manager is going to make the same as a cashier.....
Fast food giants are stirring panic over CA's $20/hr minimum wage, but let's look at the numbers:
McDonald's CEO is paid $8,543.27 an hour.
Burger King’s CEO is paid $56,250 an hour.
Domino’s CEO is paid $4,875 an hour.
Just throwing that out there. These companies can pay $20 an hour without raising prices.
But they won’t…So Newsome doing this just makes things worse
we're abt to find out .. cuz the top never loses
There is 1 CEO but 100,000 workers. Do the math.
You dont even understand that franchisee own the locations, not corporate.
Look how much the idiot Newsome get paid !
Every business owner should follow his step and how to treat there employees and pay them well
It's ok, Fast food workers deserve more than $20/ hr. They multi task, from office work to freezer to janitor to customer service. If they raise the prices it's fine or we can stay home and cook.