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A franchisee told BI how he's trying to absorb California's $20 minimum wage for fast-food workers. "Right now I'm trying to size what the true impact will be," he said. But the higher minimum wage has meant that Hom's more experienced workers have also got a boost. He declined to say how much he paid them, but noted that it was "significantly higher than the minimum wage." Some franchisees of Pizza Hut and Round Table Pizza have laid off all their delivery drivers, believed to be because of the $20 wage.
Persons: he's, , Brian Hom, I'm, Hom, He's, they're, Roy Gilad Organizations: Service, Burger King, Energy Locations: San Jose, California, smoothie, , Pizza
Californian fast-food restaurants are cutting workers to prepare for the $20 minimum wage. AdvertisementFast-food restaurants in California are laying off hundreds of workers to cut back on costs as they prepare for the state's $20 minimum wage for fast-food workers that comes into force in April, a new report by The Wall Street Journal details. Franchisees are worried about higher prices spooking dinersCalifornia is raising the state's minimum wage for workers at limited-service restaurants to $20 an hour from April 1 — 25% higher than its general minimum wage. AdvertisementThe franchisees generally set prices, and some are concerned that higher prices could scare off diners. "I can't charge $20 for Happy Meals," Scott Rodrick, owner of 18 McDonald's restaurants in Northern California, told the Journal.
Persons: , Alexander Johnson, Anne's, Scott Rodrick, Brian Hom, He's, Hom, Roy Gilad Organizations: Pizza, Service, Wall, Southern California Pizza Company, Business, KTLA Locations: California, Southern, West, Northern California, Los Angeles, San Jose
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