I haven’t read the article yet, but this looks like an opportunity to point out that there is so many changes going on in the fast food industry nationwide it is tough to say that it is tough to say what impact the new Cali wage law had.
Some say that over 10,000 jobs have been lost post 20 dollar minimum wage. Some you tube channels cover this extensively. They do post the articles relating to that claim. How true it is, I don’t know.
Well the typical starting wage in California was $18.99/hour anyway (talent.com)
and the lowest-paying Walmart job (stocker, dayshift) paid $17.21 (indeed.com)
and the law applied only to fast food, not to Gordon Ramsey Restaurants, nor to $500 a plate places in the NAPA valley,
and not even to Panera Bread, you know places for the wealthy.
But more importantly, as @Nemesis points out with fast food prices rising rapidly everywhere, there has been a lot of disruption in the industry everywhere. Taco Hell and Chipotle are doing well, many other franchises are in trouble.
A sudden change of 10,000 jobs in the California fast food industry is significant. It’s just hard to blame it all on that one law.
“Restaurants like Wendy’s, Chipotle, and Starbucks have attempted to get ahead of the issue by increasing food prices. Their prices have jumped by 8, 7.5, and 7 percent, respectively, in the past 30 days.“
Only raising prices 7% but the workers get 20%+ more in pay?
That’s all they can get at today’s interest rates and prices.
(but most kids today are like I was and won’t save enough money for the down payment and CC.)
People will say that you can’t buy a house today like our grandparents did on grandpop’s blue-collar income.
But look back at the house that was the blue-collar American Dream back then. It’s what’s in Gaius’ picture. Now the consumer wants the McMansion in the gated community… On a McDonalds income.
In the first quarter, the corporate parent of KFC, Taco Bell and Pizza Hut said its overall same-store sales narrowed by 3%, which was “expected,” said Yum! Brands CEO David Gibbs in the company’s press release Wednesday . . .
Of the three major brands owned by Yum! Brands, Pizza Hut and KFC both experienced decreases in same-store sales in the first quarter, at 7% . . . .
Meanwhile California lost 2% of its fast food workforce to layoffs.
Two percent is pretty significant given how quickly it happened,
but how much of that is really due to the new law and how much is part of the bigger picture?
How much of that “bigger picture” is due to other artificial government impacts? For example the $20 diktat is just another wage imposition piled on top of previous ones.
Well that might be true if you expect to buy it on a McDonalds income. (And blow half of it on today’s consumeristic waste.)
Our grandfathers who worked in the factory worked hard to afford their little houses. Overtime. Scrimped. Today’s McEmployee wants to do it on a 35 hour week.
PS: The average auto worker today makes $30/hr, not McIncome.
Houses are (too) expensive. That is true. Some of it, (much of it?) that is because people are not living in two-income families where both spouses had zero out-of-wedlock kids, (edit to add) but even so . . .
EX
this home is beyond the “two working people each with one promotion at work” threshold.
Comes with a whopping $3,115/month payment.
Three times that means the couple needs to make $9,345/month
which is 2 people making $29/hour. Around here, folks make about $24/hour with one promotion so . . . yeah it is unaffordable to most.