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   From: yourdime@outlook.com   
      
   California is witnessing a wave of job losses in the fast food industry as   
   the state prepares to implement a new minimum wage of $20 per hour next   
   week. According to a report from The Wall Street Journal, many   
   restaurants, particularly pizzerias, are making significant cuts in   
   response to the impending wage hike.   
      
   This move is anticipated to result in the elimination of hundreds of jobs,   
   reduced working hours, and a freeze on hiring across multiple   
   establishments. The Fast Act, signed into law by Democratic Governor Gavin   
   Newsom in September, mandates fast food chains with 60 or more locations   
   nationwide to comply with the wage increase.   
      
   The legislation, championed by labor unions and the healthcare industry,   
   aims to uplift workers’ earnings. Governor Newsom emphasized the   
   significance of the new law, noting that it would impact 80% of the   
   workforce.   
      
   Layoffs in the fast food sector began as early as last year, with Pizza   
   Hut being one of the prominent chains announcing significant cuts. More   
   than 1,000 delivery drivers are slated to lose their jobs in California,   
   while some franchises have opted to discontinue delivery services   
   entirely.   
      
   “Where select California franchisees have elected to make changes to their   
   staffing approach, access to delivery service will continue to be   
   available via Pizza Hut’s mobile app, website, and phone ordering, and the   
   customer ordering experience will remain consistent,” a Pizza Hut   
   spokesperson told USA TODAY Wednesday.   
      
   Excalibur Pizza, a Round Table Pizza franchisee, plans to eliminate 73   
   driver positions, constituting 21% of its workforce, in April. “The   
   franchisee is transferring their delivery services to third-party. While   
   it is unfortunate, we look at this as a transfer of jobs,” a company rep   
   told USA TODAY.   
      
   “As you know, many California restaurant operators are following the same   
   approach due to rising operating costs.” Despite efforts by some   
   businesses to circumvent the wage increase, Newsom’s administration has   
   emphasized that there will be no exemptions.   
      
   Greg Flynn, who holds a monopoly over Panera franchises in California,   
   attempted to exploit a loophole by claiming that restaurants producing in-   
   house bread would be exempt from the mandate. However, Newsom’s office   
   refuted this assertion, affirming that no exemptions would be granted.   
      
   Chipotle and Starbucks, two major players in the fast food industry, have   
   acknowledged the need to adjust their operations to comply with the new   
   minimum wage.   
      
   Chipotle’s CFO indicated that the company would likely raise prices to   
   offset the increased labor costs. Meanwhile, Starbucks, which recently   
   closed several stores in California, has committed to a minimum 3% wage   
   increase, effective January 1st.   
      
   The impact of California’s $20 minimum wage extends beyond fast food   
   chains, affecting various businesses categorized as “fast food   
   restaurants” under the law. As the state moves towards implementing the   
   wage hike, stakeholders are grappling with the economic ramifications and   
   seeking ways to adapt to the new regulatory landscape.   
      
   In conclusion, the impending $20 minimum wage in California is prompting   
   significant changes in the fast food industry, including job losses and   
   operational adjustments. While the wage increase aims to improve workers’   
   livelihoods, its implementation poses challenges for businesses and raises   
   questions about its long-term implications.   
      
   https://gistfest.com/california-fast-food-workers-are-losing-their-jobs-   
   as-minimum-wage-law-take-effect-2/   
      
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