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After just one month, California’s increase in the minimum wage for fast food has resulted in fewer hours worked and possibly fewer jobs for workers.

The largest El Pollo Loco restaurant franchisee in California, Pollo West Corporation, claims that when the fast-food wage raise went into effect, its franchisees switched from being profitable to losing money over night. Additionally, it stated that franchises had lowered employee hours by 10%. In February, eateries increased their rates in anticipation of the pay increase, which resulted in a 3% decrease in sales.

More than any other state, California has seen a 10% spike in fast food costs since September. As anticipated, restaurants are implementing schedule changes and introducing kiosks, in addition to passing those charges on to patrons. Reduced consumer purchases translate into lower business, which translates into fewer hours for employees; similarly, automated kiosks minimize the need for employees, which translates into fewer hours (or employment) for employees.

Are you beginning to realize how the “minimum wage” ultimately works against the interests of the same workers it is meant to assist?

The minimum wage song and dance always go like this: The Congressional Budget Office concluded that a $15 per hour federal minimum wage would help 900,000 individuals escape poverty when congressional Democrats sought to enforce it nationwide. The low-end estimate of 1.4 million individuals it would force into poverty through unemployment was less well-publicized. Even Democrats in California knew this, which is why politically linked companies were able to obtain exemptions, which is currently creating confusion in the state.

California is now “helping” those who are economically illiterate by endorsing it, as if the epidemic had not already driven enough companies out of business and employees out of jobs. Workers in fast food restaurants in California are not required to make $20 per hour. There has never been any doubt about the harsh reality that more current and potential employees will eventually learn from their mistakes.

Author: Blake Ambrose


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