{"id":46476,"date":"2024-04-01T14:12:32","date_gmt":"2024-04-01T18:12:32","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=46476"},"modified":"2024-05-13T10:44:45","modified_gmt":"2024-05-13T14:44:45","slug":"fast-food-workers-minimum-wage","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/fast-food-workers-minimum-wage","title":{"rendered":"Starting Today: Fast Food Workers In California Will Earn $20 An Hour"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"620\" height=\"469\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/california-fast-food-workers-mimimum-wage-620x469.jpg\" alt=\"minimum wage sign\" class=\"wp-image-46479\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/california-fast-food-workers-mimimum-wage-620x469.jpg 620w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/california-fast-food-workers-mimimum-wage-320x242.jpg 320w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/california-fast-food-workers-mimimum-wage-768x581.jpg 768w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/california-fast-food-workers-mimimum-wage-370x280.jpg 370w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/california-fast-food-workers-mimimum-wage-270x204.jpg 270w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/california-fast-food-workers-mimimum-wage-570x431.jpg 570w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/california-fast-food-workers-mimimum-wage-740x559.jpg 740w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/california-fast-food-workers-mimimum-wage-80x60.jpg 80w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/california-fast-food-workers-mimimum-wage.jpg 1000w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><\/figure>\n\n\n\n<p>The fast food industry in California is undergoing a significant change today (<em>April 1st, 2024<\/em>). That&#8217;s because a new law comes into effect, guaranteeing <strong>fast food workers a minimum wage of $20<\/strong> per hour. <\/p>\n\n\n\n<h2>Fast Food Workers Minimum Wage: Why $20 An Hour?<\/h2>\n\n\n\n<p>This move aims to provide more financial security to a profession historically known for low wages. But it raises concerns about the potential impact on prices and the franchise businesses operating in the <a href=\"https:\/\/www.thefranchiseking.com\/the-top-10-fast-food-franchises\">fast food space<\/a>.<\/p>\n\n\n\n<h2>On Improving Financial Security<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.thefranchiseking.com\/22-dollars-an-hour\">By raising the minimum wage<\/a> to $20, California&#8217;s lawmakers aim to acknowledge the reality that many fast food workers are adults supporting their families rather than teenagers earning extra spending money. This increase will undoubtedly enhance the financial well-being of these workers (<em>a bit<\/em>), offering them the means to meet their basic needs and potentially reduce their reliance on multiple jobs. <\/p>\n\n\n\n<h2>This Means Challenges for Fast Food Franchisees<\/h2>\n\n\n\n<p>Franchise industry lobbyists say the increased wages will result in additional costs, making it necessary for franchisees to consider raising prices by 5% to 15% and potentially halt expansion plans. <\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#dadada\">But do you need to feel sorry for franchisees?<\/p>\n\n\n\n<p>I don&#8217;t know if &#8220;<em>sorry<\/em>&#8221; is the right word to use, but California franchisees will undoubtedly need to raise their prices. How much?<\/p>\n\n\n\n<p>They&#8217;ll need to find the right balance between covering their now higher payroll costs and keeping their customers coming in. And that&#8217;s going to be challenging, especially because as of this writing, <a href=\"https:\/\/www.thefranchiseking.com\/mcdonalds-high-prices\">food prices continue to be out of control<\/a>.<\/p>\n\n\n\n<h2>Employment Effects and Potential Positive Outcomes<\/h2>\n\n\n\n<p>According to <a href=\"https:\/\/www.detroitnews.com\/story\/business\/2024\/03\/31\/california-fast-food-minimum-wage\/73160462007\/\" target=\"_blank\" rel=\"noreferrer noopener\">The Detroit News<\/a>, California has gradually increased its minimum wage over the past decade, raising concerns about potential job losses. However, data suggests that previous increases did not lead to significant employment reductions. <\/p>\n\n\n\n<p>And according to Michael Reich, a labor economics professor at the University of California-Berkeley, wages have been positive employment effects with these higher wages. Plus, many larger cities in California already have higher minimum wage rates, meaning the jump to $20 per hour will be less dramatic for some fast food restaurants.<\/p>\n\n\n\n<p>To conclude, it&#8217;s much too early to determine how much the new $20 per hour minimum wage will effect fast <a href=\"https:\/\/www.thefranchiseking.com\/fast-casual-food-franchise-relaunches\">food<\/a> workers and establishments. We&#8217;re just guessing here. But there <em>will<\/em> be an impact.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The fast food industry in California is undergoing a significant change today (April 1st, 2024). That&rsquo;s because a new law comes into effect, guaranteeing fast food workers a minimum wage of $20 per hour. Fast Food Workers Minimum Wage: Why $20 An Hour? This move aims to provide more financial security to a profession historically [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":46479,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[28],"tags":[1186],"class_list":["post-46476","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchise-news","tag-minimum-wage"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Fast Food Workers Minimum Wage $20 Now &#8212; The Franchise King\u00ae<\/title>\n<meta name=\"description\" content=\"Explore the effects of California&#039;s $20 per hour minimum wage for fast food workers. 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Finally, he's been in franchising close to 25 years.","email":"joel@thefranchiseking.com","telephone":"2168312610","legalName":"Franchise Selection Specialists Inc.","foundingDate":"2002-01-20","taxID":"20-1184045","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"1","maxValue":"10"}},{"@type":"Person","@id":"https:\/\/www.thefranchiseking.com\/#\/schema\/person\/b560fd324f6df9be52ac875e631beb66","name":"Joel Libava","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/0c74981307dba3f4970cdf8359a1b2fc6ffe7721a2e3d1001acd9ac59db6ed61?s=96&d=mm&r=pg","url":"https:\/\/secure.gravatar.com\/avatar\/0c74981307dba3f4970cdf8359a1b2fc6ffe7721a2e3d1001acd9ac59db6ed61?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/0c74981307dba3f4970cdf8359a1b2fc6ffe7721a2e3d1001acd9ac59db6ed61?s=96&d=mm&r=pg","caption":"Joel Libava"},"description":"I\u2019m The Franchise King\u00ae, Joel Libava. I'm the author of two helpful books on researching and buying a franchise. In addition, I'm a Franchise Ownership Advisor with 20+ years of experience working 1-on-1 with people interested in buying a franchise, safely. Subscribe to my free VIP Franchise Newsletter.","sameAs":["https:\/\/www.thefranchiseking.com","https:\/\/www.instagram.com\/thefranchchiseking1","https:\/\/linkedin.com\/in\/joellibava","https:\/\/in.pinterest.com\/franchiseking\/","https:\/\/www.youtube.com\/JoelLibava"],"knowsAbout":["Franchising"]}]}},"_links":{"self":[{"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/posts\/46476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/comments?post=46476"}],"version-history":[{"count":7,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/posts\/46476\/revisions"}],"predecessor-version":[{"id":46703,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/posts\/46476\/revisions\/46703"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/media\/46479"}],"wp:attachment":[{"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/media?parent=46476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/categories?post=46476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thefranchiseking.com\/wp-json\/wp\/v2\/tags?post=46476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}