Read previewFast-food franchisees in California are desperately looking for ways to cut costs as the state's $20 minimum wage for workers at limited-service restaurants kicks in.
Mendelsohn, the El Pollo Loco franchisee, told NPR that her preemptive price increases had already deterred some customers.
William Blair analyst Sharon Zackfia expects some restaurants in California to turn to digital kiosks as labor costs rise.
Spending less on operationsBeyond labor, restaurants are looking for other ways to save on their operating costs.
Alex Johnson, the Auntie Anne's Pretzels and Cinnabon franchisee, told the AP that he wasn't looking at opening any more locations in California.
Persons:
—, Michaela Mendelsohn, Alexi Rosenfeld, Alex Johnson, Anne's Pretzels, he'd, Marcus Walberg, Mendelsohn, Brian Hom, Walberg, Sharon Zackfia, William Blair, Grace Dean, Kris Stuebner, Scott Rodrick
Organizations:
Service, Business, El, Loco, NBC Los Angeles, Associated Press, El Pollo Loco, NPR, Wall Street Journal, CNN, KFC, Management Corporation, ABC, Fox News, AP
Locations:
California, Los Angeles County, Los Angeles, San Jose