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☆ Franchisees say it's them, not big corporations, who are the real losers of California's $20 fast-food wage
▼ + stars: | 2024-04-15 | by ( Grace Dean | ) www.businessinsider.com time to read: +5 min

Restaurant franchisees say they're the real losers of California's $20 fast-food minimum wage. AdvertisementFranchisees say they have to bear the brunt of California's new $20 minimum wage for fast-food workers. But the $20 wage applies to both corporate-owned and franchise restaurants, even if the franchisee just owns one or two restaurants. She added that the new $20 wage felt like an "unfair target on our backs." "You're going to have to have the mega owners as they're called, or 20 stores, a hundred stores, 500 outlets.

Persons: —, Keith Miller, Brian Hom, We're, Hom, Miller, he'd, Mike Mangoine, Jessica D'Ambre, D'Ambre, Matthew Haller, Burger King, they're Organizations: Service, Business, Subway, McDonald's Corporation, Los Angeles Times, Times, International Franchise Association, Taco Bell Locations: California, San Jose , California, Los Angeles, Inland, Burger, McDonald's

Starting Monday, fast-food workers in California at chains with more than 60 national locations earn $20 an hour, higher than the state's broader minimum wage of $16 per hour. California pay is already highwatch nowWhile the new fast-food minimum wage is among the highest in the U.S., California employers are used to paying more for their labor. Even when it is not mandated, restaurants usually find themselves paying more than the minimum wage to attract hourly workers. As a full-service restaurant chain, the company won't be obligated to pay its California workers $20 an hour. Advocates prepare to go biggerFrom start to finish, the California law, which was backed by the Service Employees International Union, has been controversial.

Persons: David Paul Morris, Gavin Newsom, Matthew Haller, Daniel Zhao, Zhao, Lauren Crabbe, she's, Crabbe, Matthew Clark, Jennifer B, Perez, I'm, it's, Newsom, Greg Flynn, Flynn Organizations: McDonald's Corp, Bloomberg, Getty, International Franchise Association, CNBC, Bureau of Labor Statistics, Service Employees International Union, Gov, SEIU Locations: Oakland , California, U.S, California, , California, Fresno, San Francisco, Long Beach

☆ People in California will soon be paying more for Chipotle, McDonald's, and other fast-food
▼ + stars: | 2024-02-06 | by ( Ana Altchek | ) www.businessinsider.com time to read: +4 min

To compensate for the extra cost of labor, restaurants like McDonald's, Chipotle, and Jack In the Box plan to raise menu prices at their California stores. AdvertisementIn an October earnings call, McDonald's CEO Chris Kempczinski said that menu prices would increase in California, but didn't say which items or by how much. Kempczinski said in the call that the company would be using the wage increase as an opportunity to gain on its competitors. This will be the fifth time the company has raised menu prices in the last two years. Pizza Hut cut its in-house delivery program, eliminating 1,200 delivery workers to prepare for the pay increase.

Persons: —, Jack, Chris Kempczinski, Kempczinski, McDonald's, Chipotle, Jeff Hanscom, Hanscom Organizations: Service, National Owners Association, Street Journal, Wall, International Franchise Association Locations: California, Chipotle

The federal government is delaying a new rule that could make it easier for millions of workers to unionize after business groups challenged it in court. The National Labor Relations Board said Thursday that the rule — which was scheduled to go into effect in December — will now be effective Feb. 26. The rule sets new standards for determining when two companies should be considered “joint employers" in labor negotiations. But the new rule would expand that definition, saying companies may be considered joint employers if they have the ability to control — directly or indirectly — at least one condition of employment. But the NLRB says the current rule makes it too easy for companies to avoid their legal responsibility to bargain with workers.

Persons: McDonald's isn't, National Retail Federation —, Sen, Bill Cassidy, Cassidy, Democratic Sen, Joe Manchin, Joe Biden Organizations: National Labor Relations Board, Republican, U.S . Chamber of Commerce, American, Lodging Association, International Franchise Association, National Retail Federation, NLRB, U.S, Louisiana Republican, Health, Education, Labor, Pensions, Federal, Democratic, House Locations: —, Texas, Louisiana, West Virginia

☆ McDonald's franchisee group says new California fast-food bill will cause 'devastating financial blow'
▼ + stars: | 2023-09-15 | by ( Kate Rogers | ) www.cnbc.com time to read: +4 min

After California lawmakers passed a landmark fast-food bill, an independent advocacy group of McDonald's owners is pushing back against what it says will be a "devastating financial blow" to its franchisees in the state, according to a memo to its membership viewed by CNBC. It includes a wage floor of $20 for California workers at fast-food chains with at least 60 locations nationwide, starting April 1. The National Owners Association, an independent advocacy group of more than 1,000 McDonald's owners, projects in the memo the bill will cost each restaurant in the state $250,000 annually. McDonald's sent its own letter to its restaurant system on Monday, which was viewed by CNBC. The new legislation eliminated the threat of joint franchisor-franchisee liability, which McDonald's said would "destroy the franchise model in California and strip thousands of restaurant owners of the right to run their business."

Persons: Gavin Newsom's, McDonald's, Roger Delph Organizations: CNBC, Gov, Labor, National Owners Association, National Restaurant Association, International Franchise Association, IFA, [ Service Employees International, America, Team, Industrial Welfare Commission Locations: California

☆ 36-year-old CEO took Philly cheesesteaks to Atlanta, sold over $2.3 million at one store in the last year—now he wants to help others do the same
▼ + stars: | 2023-08-31 | by ( Frank Holland | In Frank-Holland | ) www.cnbc.com time to read: +4 min

Big Dave's Cheesesteaks founder and CEO Derrick Hayes is cooking up what he hopes will be his most delicious offering yet: a chance to own a franchise. On Thursday, Hayes will begin accepting official applications to purchase a Big Dave's Cheesesteaks franchise. From water ice to cheesesteaksBig Dave's Cheesesteaks started as Big Dave's Water Ice, as Italian ice is known is Philadelphia, in a gas station in Dunwoody, Georgia, in 2014. Derrick Hayes Source: William SterlingAfter failing to gain traction selling frozen treats, Hayes switched to cheesesteaks. The two connected to discuss repairs to Big Dave's and community outreach during the pandemic.

Persons: Dave's, Derrick Hayes, Hayes, it's, Cheesesteaks, William Sterling, Eve, George Floyd, Pinky Cole, Big, Cole Organizations: The, Black Business, International Franchise Association, Slutty Locations: The West Philadelphia, Philadelphia, Dunwoody , Georgia, he's, Philly, Atlanta

☆ Franchising industry holds its breath as FTC takes a closer look at regulations
▼ + stars: | 2023-07-05 | by ( Kate Rogers | ) www.cnbc.com time to read: +7 min

The FTC told CNBC it received more than 5,500 comments on the inquiry, indicating "broad interest in ensuring fairness in franchising." The agency sought input from stakeholders, including franchise operators, workers and parent corporations, as it scrutinizes franchising practices. Industry watchers say an initial proposal from the FTC on franchise rule amendments could come as soon as the end of year. The NOA's public submission said, "The McDonald's system was, and could again be, the gold standard for the franchise business model. "Since McDonald's founding in 1955, our franchising model has successfully served the brand, franchisees, employees and the local communities we operate in."

Persons: Lina, Matt Haller, they're, Haller, franchisors, McDonald's, NOA, Danielle Marasco, Marasco Organizations: FTC, CNBC, Federal Trade Commission, Franchise Association, Microsoft, Activision, Twitter, Industry, IFA, Service Employees International Union, Strategic, Marriott, Hilton, Brands, National Owners Association, National Locations: U.S, McDonald's, Marriott, California

☆ Franchisers, Facing Challenges to Business Model, Punch Back
▼ + stars: | 2023-04-20 | by ( Lydia Depillis | ) www.nytimes.com time to read: +2 min

Matthew Haller, chief executive of the International Franchise Association, cited a 2021 survey by the market research firm Franchise Business Review in which 82 percent of franchisees said they supported their corporate leadership. Hotel franchisees, squeezed by lost revenue during pandemic lockdowns, say they have also been hurt by the hotel brands’ loyalty programs, which require the hotelier to rent rooms at a reduced rate. “There comes a point when you’ve tried and tried to meet with the franchisers to ask for changes, and they refuse to listen,” she said. In Arizona, legislation introduced to enhance franchisees’ ability to sell their businesses and prevent retaliation from franchisers if they band together in associations has also faced resistance. The bill was approved by two committees in February and March, but the International Franchise Association hired two lobbying firms to fight it.

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