California fast food restaurant owners warn that $20 minimum wage hike will cripple them
Hundreds of California fast food restaurant owners warned the state against a proposal to hike the minimum wage above the $20 an hour that was passed last year — saying it would “cripple” small businesses struggling to survive.The union representing fast food workers has urged the state’s Democrat-led Fast Food Council to hike the minimum wage to $20.70 an hour — a 3.5% increase.“An additional wage increase would unfairly single out our livelihoods once again and cripple thousands of small business owners like us who are already struggling to survive the $20/hour minimum wage, our customers, and our employees,” the owners of 625 fast food restaurants wrote in a Dec.
23 letter to the Fast Food Council.Last April’s 25% increase, from $16 an hour to a $20 hourly rate, led several major fast food chains to hike menu prices — with some shuttering locations because of increased labor costs.The franchise owners said they are still trying to recover from the effects of the initial hike signed into law by Democratic Gov.
Gavin Newsom.“This increase dealt a devastating blow to our local restaurants and local jobs, resulting in higher food prices for families already struggling with the high cost of living,” the restaurant owners wrote in their letter, which was first reported by National Review.“It unfair to single out local restaurant owners — yet again — for higher wages that no other industry is forced to pay.”They pointed to a survey taken last July that found that 98% had to raise food prices, while 89% cut employee hours.
Nearly three in four — 74% — reported an increased likelihood of shutting down their restaurants, while 73% said that they had to limit employee shift pick-up or overtime opportunities.Seven out of 10 restaurant owners reported that they either reduced staff or consolidated positions as a result of the $20 an hour law.“The impacts of the $20/hour minimum wage are well-chronicled – with thousands of fast food e...