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Labor Costs

All articles tagged with #labor costs

economy1 day ago

December grocery prices surge to the sharpest monthly jump since 2022

December grocery prices rose 0.7%, the fastest monthly gain since August 2022, with food-at-home up about 2.4% year over year; eggs fell more than 20% from a year ago after tariff rollbacks, but staples such as coffee, beef and candy rose double digits. The overall CPI was up 2.7% YoY and core inflation 2.6%, signaling ongoing price pressures for households even as inflation cools from its peak. Contributing factors include higher labor costs and supply disruptions from weather, disease, and the war in Ukraine, with tariffs playing a role in some price changes.

via Axios|
#consumer-price-index#economy#food-at-home
business5 months ago

AI's Growing Impact on U.S. Jobs and Workforce

Major U.S. companies are increasingly using AI to boost productivity and cut labor costs, especially in entry-level and manual jobs, while some experts believe AI will eventually create new employment opportunities despite current layoffs and efficiency gains. Companies like Microsoft, Amazon, and Starbucks are leveraging AI and robotics to improve operations, though they frame these changes as supplements rather than replacements for human workers. Overall, AI is reshaping workforce needs, leading to both job reductions in certain sectors and new hiring in high-impact areas.

via CNBC|
#ai#automation#business
business7 months ago

Starbucks' Investment in Baristas: Will It Pay Off?

Starbucks is investing heavily in hiring more baristas and improving customer service to restore its image as a welcoming 'third place' between home and work, despite concerns about increased costs and the impact on profitability. The company aims to enhance personal interactions and streamline orders using algorithms, while also adding full-time assistant managers. Wall Street remains cautious about the rising labor costs, but investor confidence is reflected in the recent share price increase.

via Financial Times|
#business#customer-service#hiring
business1 year ago

Costco Halts Book Sales, Shocking Publishers

Costco will stop selling books year-round starting in January, limiting sales to the holiday season and special promotions. This decision, driven by labor cost concerns, is a significant blow to the publishing industry, which relies on Costco's bulk purchases. The move has sparked criticism and highlights the ongoing challenges faced by the book retail sector.

via New York Post |
#books#business#costco
business1 year ago

Former Fast Food CEO Warns of Nationwide Restaurant Closures Due to Rising Prices

Former CKE Restaurants CEO Andy Puzder predicts more restaurant closures nationwide due to rising menu prices and labor costs, exacerbated by recent minimum wage increases, particularly in California. He notes that fast-food prices have surged faster than inflation and average hourly earnings, making it difficult for many restaurants to remain profitable.

via Fox Business|
#business#closures#fast-food
business1 year ago

Red Lobster Contemplates Chapter 11 Bankruptcy Amid Rising Labor Costs

Red Lobster is reportedly considering filing for Chapter 11 bankruptcy to restructure its mounting debt, seeking advice from law firm King & Spalding to shed long-term contracts and renegotiate leases. The seafood restaurant chain's funds have been impacted by strenuous leases and rising labor costs, prompting discussions with its owner Thai Union Group Plc and key lender Fortress Investment Group. Thai Union Group, which took control of Red Lobster in 2021, recorded a share loss of roughly $19 million from the restaurant alone and included a $530 million non-cash impairment charge in its fourth-quarter earnings report. Additionally, California franchisee owners are grappling with surging labor costs following a new wage law that requires limited-service chains to pay their workers at least $20 hourly.

via New York Post |
#bankruptcy#business#labor-costs
business1 year ago

California Fast Food Franchisees Accelerate Self-Serve Kiosk Implementation Amid Wage Hikes

A California Burger King franchisee plans to expedite the rollout of self-service kiosks and cut workers' hours in response to the state's new $20 minimum wage law. Harshraj Ghai, who owns 140 Burger King franchises, aims to install kiosks in all his restaurants within the next 30 to 60 days to mitigate labor costs without raising menu prices. Other fast-food chains have also raised prices and adjusted operations in response to the wage hike.

via New York Post |
#burger-king#business#california
business1 year ago

"California Fast Food Franchisees Grapple with Impact of $20 Minimum Wage Hike"

A California McDonald's franchisee is considering reducing store hours, raising menu prices, and delaying renovations to offset the impact of the state's $20 hourly minimum wage for fast-food workers. Scott Rodrick, who owns 18 McDonald's in northern California, has already raised prices by 5-7% and is rethinking his business strategy due to the new law, expressing concerns about the impact on customer demand and profitability. He is also considering delaying capital expenditures and renovations to mitigate labor costs, as the new wage law has prompted fast-food chains to reassess their pricing strategies.

via New York Post |
#business#california#labor-costs
business1 year ago

California Fast Food Chains Raise Prices and Close Stores Amid Minimum Wage Hike

Fast food restaurants in California have begun raising prices following the implementation of the state's new $20 minimum wage, with chains like Burger King and In-N-Out Burger seeing menu item increases of at least 25 cents. Other major chains, including McDonald's and El Pollo Loco, have also adjusted prices in response to the wage growth. The $4 minimum wage raise, affecting larger chains with at least 60 locations, was signed into law by Gov. Gavin Newsom and is expected to impact around 540,000 fast food workers in the state, raising their annual salaries to at least $41,600.

via Patch|
#business#california#fast-food
business1 year ago

"California Fast Food Chains Raise Prices as Minimum Wage Hike Hits Restaurants"

California's new minimum wage legislation has raised the minimum wage for employees at fast food restaurants to $20 an hour, costing one restaurant owner $470,000 across his 10 locations. He warns that prices could go up immediately, as he's already seen a decline in sales and customer traffic due to COVID-induced inflation. Industry experts caution that higher menu prices are imminent in response to the minimum wage increase, leading some restaurant owners to consider expanding in neighboring states with fewer regulations.

via Yahoo Finance|
#business#california#labor-costs
business1 year ago

"California's Minimum Wage Hike Sparks Price Surges and Burdens Small Businesses"

California's minimum wage increase from $16 to $20 is causing major fast-food chains like Chipotle, McDonald's, and Starbucks to brace for price surges as they grapple with increased operational costs. The wage hike, intended to benefit workers, is leading to higher product prices for consumers. Companies are considering adjusting pricing, streamlining their workforce, or using robotics and AI to offset rising labor costs. As wage increases become more common across states, businesses are likely to heavily invest in automation to streamline operations, while consumers face higher prices for everyday essentials amid broader inflationary pressures.

via Yahoo Finance|
#business#california#fast-food-industry
business1 year ago

"California's Fast Food Industry Faces Changes in Minimum Wage Laws"

California's new fast-food minimum wage law, which raises the minimum wage for fast-food workers, exempts certain establishments such as those in airports, hotels, event centers, theme parks, museums, and grocery establishments from the wage increase. This exemption means that employees working in these exempted locations won't benefit from the new law, while fast-food restaurants that don't meet the exemptions will be required to pay their employees more. As a result, some California-based franchise operators have announced plans to reduce staff or raise prices to cope with the increased labor costs.

via KTLA Los Angeles|
#business#california#exemptions
wages-and-labor1 year ago

"California Implements $20 Minimum Wage for Half a Million Workers, Highest in the Nation"

California's minimum wage for fast-food workers has increased to $20 an hour, affecting half a million employees and prompting concerns from restaurant owners about higher labor costs. The wage hike is a result of a deal between labor leaders and fast-food companies, and is expected to impact prices, automation, and worker hours in the restaurant industry. While workers welcome the raise, some worry that it may not be enough to cover living expenses in expensive cities like Los Angeles.

via NPR|
#california#fast-food-workers#labor-costs