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It has been reported that fast-food restaurants in California have eliminated almost 10,000 jobs as a result of the $20 minimum wage increase.

The $20 per hour rule signed into law by Governor Gavin Newsom (D) on April 1st appears to have had a disastrous effect on the business, according to a Fox Business story published on Wednesday.

The publication continued:

“Since Newsom signed into law California Bill 1228 into law last year, the California Business and Industrial Alliance (CABIA) reports the loss of nearly 10,000 fast food restaurant jobs. CABIA has placed an advertisement including fake “obituaries” of well-known fast food brands in Thursday’s statewide edition of USA Today in order to draw attention to what it claims are the unexpected repercussions of the law. The CABIA advertisement features several eateries that had to increase costs, fire employees, or even close their doors in order to survive. The advertisement shows news clippings that show the state-wide adjustments made by companies including Burger King, El Pollo Loco, and Subway. “For years, California businesses have been under constant attack and assault,” Tom Manzo, the founder and president of CABIA, stated to FOX Business. “It’s just one more law that further endangers businesses.”

The New York Post said on Thursday that a number of food companies, including McDonald’s, Burger King, and In-N-Out Burger, upped their prices to offset the higher pay.

According to Breitbart News, a California McDonald’s franchisee spoke against Newsom’s minimum wage law in March, arguing that adjusting the menu’s products to reflect the new pay would make them “unaffordable.”

According to a study, fast food costs in California increased during the six months prior to the state’s $20 minimum wage legislation, the outlet reported in April.

As the $20 minimum wage went into effect, Harsh Ghai, another fast food franchisee in the state, revealed that he was racing to put in kiosks at his businesses in order to save money.

Author: Blake Ambrose

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