California Fast-Food Chains Navigate Challenges of Minimum Wage Hikes
The owner of four Fatburger franchises in Los Angeles plans to raise menu prices by up to 10% and reduce workers' hours in response to California's minimum wage increase for fast food workers to $20 per hour, which is expected to spike payroll by 30%. Other cost-cutting measures include eliminating paid time off and not hiring new employees. This move comes as fast-food chains like McDonald's also raise prices in response to the minimum wage hike, and Pizza Hut franchises in California plan to lay off delivery drivers.