CA: Newsome passed $20 fast food min wage law, statewide

10,037 Views | 129 Replies | Last: 10 mo ago by Ag with kids
24601
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AG
I'm scratching my head trying to think what could ever justify a higher minimum wage specifically for fast food workers than literally any other job in the world. Easiest job, laziest employees, but yes they definitely "deserve" a 30% higher wage than everyone else's minimum?
C@LAg
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24601 said:

I'm scratching my head trying to think what could ever justify a higher minimum wage specifically for fast food workers than literally any other job in the world. Easiest job, laziest employees, but yes they definitely "deserve" a 30% higher wage than everyone else's minimum?
most FF companies have operations regionally or nationally, not just within the state.

So this results in the OVERALL company bearing some of the burden of the increase (and any franchisees bearing even more).

easier to sell this idea than burden small mom/pop shops (regardless of industry) with few locations.
CDUB98
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AG
C@LAg said:

24601 said:

I'm scratching my head trying to think what could ever justify a higher minimum wage specifically for fast food workers than literally any other job in the world. Easiest job, laziest employees, but yes they definitely "deserve" a 30% higher wage than everyone else's minimum?
most FF companies have operations regionally or nationally, not just within the state.

So this results in the OVERALL company bearing some of the burden of the increase (and any franchisees bearing even more).


Do you have numbers to back that?

My experience tells me it's a franchisee who owns 1 or 5 in an area, not some larger LLC owning large swaths of area.
Boozer92
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I was told once by a fast food restaurant owner that the price of a meal generally matches the hourly rate of the employees. If a quarter pounder, fries and medium drink goes to $20 then it will cost McDonalds more than $250k/year
B-1 83
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AG
They just need to sell two more Big Macs.
Being in TexAgs jail changes a man……..no, not really
Isosceles_Kramer
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Xiden is hands down the absolute worst president in the history of the US. If Newsome is elected, he may take that award. That's truly astounding
CDUB98
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Boozer92 said:

I was told once by a fast food restaurant owner that the price of a meal generally matches the hourly rate of the employees. If a quarter pounder, fries and medium drink goes to $20 then it will cost McDonalds more than $250k/year


It's been 30 years, but a can second that cost versus hourly wage.
DarkBrandon01
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AG
24601 said:

Easiest job, laziest employees
you've definity never worked fast food before
mm98
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Boozer92 said:

I was told once by a fast food restaurant owner that the price of a meal generally matches the hourly rate of the employees. If a quarter pounder, fries and medium drink goes to $20 then it will cost McDonalds more than $250k/year


When I was managing Freebirds in BCS our average sales ticket was about 7.00 and it was pretty close to the hourly rate. This was a long time ago…late 1990s for reference

Regarding the bread exemption, I'd have to see the details but I'm guessing it provides some protections for donut/pastry/breakfast joints. There average sale is much smaller and $20 per hour would sink their business
Biz Ag
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AG
Enzomatic
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So the "value menu," previously "dollar menu," will be items under $10?
Enzomatic
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Biz Ag said:

C@LAg said:

amercer said:

Does In-N-Out make its own bread? That's a weird ass exemption that must benefit some Cali based company.
An establishment that bakes bread for sale on its premises is not considered a fast-food restaurant, the new law states. "This exemption applies only where the establishment produces for sale bread as a stand-alone menu item, and does not apply if the bread is available for sale solely as part of another menu item."

But if you work at Panera Bread or Boudin Bakery, don't expect to benefit from the wage boost.


Not to mention Subway. There are probably thousands of them in California.

All the chain sandwich places in Boise are pushing HARD for tips. Thatl pick up even more in California.

I'm assuming that employees are promised when hired the opportunity to make a lot more through tips in lieu of fast food level pay. That said, it's freaking ridiculous to be harassed for tips at drivethrus.
Iraq2xVeteran
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AG
This $20 fast food minimum wage is ridiculous. Fast food jobs are designed to be entry level jobs to get into the workforce, not a career.
CDUB98
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DarkBrandon01 said:

24601 said:

Easiest job, laziest employees
you've definity never worked fast food before


I have, and for 90% of them, he's right. The other 10% become management or use it as a means to put themselves through college (me).
Casual Cynic
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Why not raise the minimum wage to a million dollars an hour? Then we could all be millionaires!
maroonthrunthru
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Make bread… Make it taste like crap, so nobody orders it…. Make limited amounts…. Keep it on shelf for days…

Profit…
CDUB98
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AG
maroonthrunthru said:

Make bread… Make it taste like crap, so nobody orders it…. Make limited amounts…. Keep it on shelf for days…

Profit…


Subway gonna sue you.
IslanderAg04
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At some point CA will price themselves out.
24601
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DarkBrandon01 said:

24601 said:

Easiest job, laziest employees
you've definity never worked fast food before

Why yes I have
FIDO*98*
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C@LAg said:

and they key point here is...why just fast food and not ALL hourly workers?
.


They effectively did by artificially increasing the demand for fast food jobs. Other businesses will now have to raise wages to prevent losing workers to the fast food industry.
Trajan88
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Customer: my 6-piece nuggets and small fries was $3.50 last week, but $6.50 today! What gives?

Answer: Receipt has a pic of Gov. Oily Good Hair as one of the line items.
Ag with kids
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maroonthrunthru said:

Make bread… Make it taste like crap, so nobody orders it…. Make limited amounts…. Keep it on shelf for days…

Profit…
True.

The exemption says you have to MAKE bread, not SELL bread...
bmks270
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AG
TexasAggie_02 said:

Lol, so subway just has to start selling bread as a stand alone item and they can be exempt.


Can't any fast food restaurant just add bread to the menu?

Ags4DaWin
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mm98 said:

Boozer92 said:

I was told once by a fast food restaurant owner that the price of a meal generally matches the hourly rate of the employees. If a quarter pounder, fries and medium drink goes to $20 then it will cost McDonalds more than $250k/year


When I was managing Freebirds in BCS our average sales ticket was about 7.00 and it was pretty close to the hourly rate. This was a long time ago…late 1990s for reference

Regarding the bread exemption, I'd have to see the details but I'm guessing it provides some protections for donut/pastry/breakfast joints. There average sale is much smaller and $20 per hour would sink their business


The higher cost of workers would have sunk their business.

Raising their prices would have priced out their business and firced them to close and go into bankruptcy.

Its great they were given an exemption because now, they will be able to hire people at the lower wage. Except noone will apply to work there because they can make more at McDonald's.

So the exemption will allow them to close because they can't attract workers.

Good thing they got that exemption. Now they can close their doors for a different reason!
kb2001
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Quote:

In addition to the minimum wage increase for fast-food workers, which comes into effect April 1, 2024, the bill also establishes a council that can approve further wage increases in the future.
This is the scariest part of it to me. The bill not only increased minimum wage, but it also grants the authority to make further increases to an unelected body.
91AggieLawyer
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J.P. 03 said:

Forget two teas. Based on the loophole in the OP, sounds like those McDonald's locations need to start baking their own bread.

EDIT: amercer beat me to it.

What will be funny is if they either bake it and don't sell it or offer it as a non-menu item.

About 5 or 7 years ago, I seriously considered opening up a sub sandwich shop. I was offered a killer deal (at least, at the time) on a decent strip center lease (2 years remaining, no liability for leaving, etc.). I had everything set up to go -- suppliers, equipment to buy, and a pretty intense marketing plan. I found a bakery who would bake my bread daily for a ridiculously low price, and they were happy to do it. Everything I needed would be assembled at my site.

Then, 2 things happened. First, I couldn't make the numbers work with a manager and I wasn't ready to go full time at it -- I'd cut my income in half, basically. Second, the bakery owner sold out! He never told me he was on the market and the new guy wasn't interested in my business and his price was too steep. The old guy gave me the recipe but after many trials and errors in a commercial kitchen over about a month, I couldn't duplicate it. The bread was flat, or hard or whatever. Frankly, the new bakery owner couldn't bake worth crap either and covid, I think, wiped him out.

Bread baking, at least for a sale-able product, is SERIOUS business. You dang well better know what the heck you're doing.
B-1 83
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If tortillas don't count as bread, the law is racist and unconstitutional.
Being in TexAgs jail changes a man……..no, not really
BigRobSA
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B-1 83 said:

If tortillas don't count as bread, the law is racist and unconstitutional.


Palabra!
ts5641
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Coming soon to California - fully automated fast food restaurants. Ultimately they'll be everywhere. Private business doesn't need government setting their salaries they pay to employees. Minimum wage is an overreach by government and this is where its logical conclusion will be met.
TexasAggie_02
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bmks270 said:

TexasAggie_02 said:

Lol, so subway just has to start selling bread as a stand alone item and they can be exempt.


Can't any fast food restaurant just add bread to the menu?




Yes, but subway already makes their own bread. For them it's actually going to be super easy, barely an inconvenience.

Adverse Event
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Iraq2xVeteran said:

This $20 fast food minimum wage is ridiculous. Fast food jobs are designed to be entry level jobs to get into the workforce, not a career.

Historically, working a fast food job you could also afford to own a home.

But this was all before everyone everywhere erred egregiously regarding monetary and fiscal policies, leading us to today where we bemoan businesses that bewitch society by brimming beverages, beckoning bountifully, bringing boundless bulges, ballooning bills boldly, belittling health benefits, while wise whitecoats wave prescriptions when wholesome wellness waits in dietary decisions, diving deeper into a destructive cycle dictated by sugary, syrupy syndicates.

Regarding the $20 minimum wage for fast food workers, it's a captivating call that carries controversy.
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Logos Stick
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kb2001 said:

Quote:

In addition to the minimum wage increase for fast-food workers, which comes into effect April 1, 2024, the bill also establishes a council that can approve further wage increases in the future.
This is the scariest part of it to me. The bill not only increased minimum wage, but it also grants the authority to make further increases to an unelected body.


Oh, you mean like the Politburo in the USSR.
HollywoodBQ
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AG
ts5641 said:

Coming soon to California - fully automated fast food restaurants. Ultimately they'll be everywhere. Private business doesn't need government setting their salaries they pay to employees. Minimum wage is an overreach by government and this is where its logical conclusion will be met.
They already tried it in SF a decade ago and it didn't work out.
Logos Stick
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They will all have to raise their wages as stated above. Otherwise, there will no employees to make the bread because they'll be working down the road at McDonalds.
HollywoodBQ
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I have to say, I had no idea the big bread lobby had such clout in Sacramento.

Other side of the coin, at my local In'N'Out Burger in Studio City, they could barely find enough workers at $22/hr.
 
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