I can't charge $20 for a Happy Meal

The California political class appear to be targeting fast food franchises in order to put them out of business.

Recently, they set the minimum wage for fast food workers to be $20 an hour, by far the highest in the nation. But that alone isn't enough to make the accusation that the state is trying to put the franchise out of business. What is more striking is that the state does not demand any other business in the state to pay its employees the same amount. The general minimum wage in California is only $15 dollars an hour.

What is it about fast food workers that their "living wage" needs be higher than everyone else's? Or does this not have anything to do with cost of living but rather social engineering?

'I can't charge $20 for a Happy Meal': McDonald's franchisee responds to California's new fast-food worker wages

California set its minimum wage for fast-food workers at $20 an hour on Monday, which is 25% more than the state's general minimum wage. The legislation, AB 1228, affects limited-service chains with at least 60 locations nationwide.

The state's newly created Fast Food Council can raise the minimum wage by up to 3.5% yearly, depending on inflation.

link

The new "fast food" specific minimum wage is going to make life difficult for the small business owners that run the franchise.

"We have looked at price, although I can't charge $20 for a Happy Meal," Scott Rodrick, the owner of 18 McDonald's restaurants in Northern California, told CNN. "My customers' appetite to absorb menu-board prices is not unlimited."

"I've got to look at every option for business survivability," Rodrick told Fox News. "I've got to be aggressive in seeking labor-efficient growth. I'm going to have to explore more digital and delivery avenues. I'm going to obviously have to make, like any smaller-business owner, harder choices around big capital expenditures."

Those business owners who are not affected by the new living wage law? Of course, top Democrat leaders and their downers. It might be commendable if the Democrats really did care about a living wage for lower class works ... but their actions tell a different story. Squeezing out the competition by putting your thumb on the government scales is nothing new.

Gavin Newsom's Restaurant Offers $16 Hourly Wage to Employees

Arestaurant partially owned by California Governor Gavin Newsom is recruiting for a $16-per-hour role, despite a new state law guaranteeing a minimum wage of $20 per hour for fast-food workers. The restaurant appears not to meet the threshold for the new minimum wage, a law that Newsom himself signed to much fanfare in September.

link

How Panera Bread Ducked California’s New $20 Minimum Wage Law

Billionaire Greg Flynn, who made his fortune running one of the world’s largest restaurant franchise operations, is getting a new boost from sourdough loaves and brioche buns.

That's because a California law that’s about to raise the state minimum wage at fast-food spots to $20 an hour from $16 offers an unusual exemption for chains that bake bread and sell it as a standalone item.

Governor Gavin Newsom pushed for that break, according to people familiar with the matter. Among the main beneficiaries is Flynn, a longtime Newsom donor whose California holdings include two dozen Panera Bread locations.

Bloomberg

Dispite the unscrupulous actions from California political leaders; lining their own pockets at the expense of small business owners; at least there is the silver lining that fast food works will see some gains over the new law... right? ... not so fast.

Is it really a pay raise if you're going to have pick up the slack left by your now fired coworker? And what about that coworker that was fired so that the business owner could afford to pay the remaining workers? Is no wage a living wage?

California’s New Minimum Wage Law Will Bring Higher Pay To Fast-Food Workers, Along With Unintended Job Losses

In anticipation of the April 1 mandate, employers in California started slashing restaurant jobs and reducing hours, especially pizzerias, according to the Wall Street Journal.

Excalibur Pizza, a franchisee of Round Table Pizza, plans to eliminate 73 delivery jobs in April—21% of its workforce.

Additionally, two Pizza Hut operators in California announced cuts to more than 1,200 in-house delivery jobs in December, Business Insider reported after reviewing federal-employment notices filed with the state.

Forbes

So to sum up; small business owners hurt by the new California minimum wage laws. Workers hurt by the new California minimum wage laws. Democrates and their downers get an advantage with the new California minimum wage laws.

All I know is that I got to stop eating at fast food places; their getting too expensive.

a reply to: Dandandat3

Another angle is they are pushing for automation, with the result of socialism.

a reply to: Dandandat3

Panera Bread does and is now paying the $20 hour - LINK

I know friends and family or there kids that are working in this field in Cali and almost ALL of them got the raise but had hours Cut ... some in Half ...meaning in the end they making about the same as they were when working full shift.

Plus Now you have good old Newsom pushing a raise for Medical Staff as well.... up to $25 hour starting...With that as you have said it will hurt these small medical offices. I'm not as opposed to the Medical staff raise being most have to have a lil bit more experience or education for those jobs...But as far as fast-food where you don't need any of those things.

I mean lets be real here ....There are a LOT of other Minimum Wage jobs that are WAY harder then working fast-food but don't get this $20 hour raise .....Dumb

Since 1978, CEO wages have raised 1200%. In comparison, the average worker wage has raised 15%. But do go on about how the average worker is wrong for asking for a wage that keeps up with inflation.

a reply to: Dandandat3

Chris Kempczinski received a pay package of just over $20 million in 2021, according to new SEC documents filed on Monday.

That was nearly double the $10.8 million he was paid during the pandemic-plagued 2020. It was also the largest pay package received by a McDonald’s CEO since 2017, when Kempczinski’s predecessor Steve Easterbrook received $21.8 million.

Like most executives, the bulk of Kempczinski’s pay package is in the form of stocks and options—in this case, about $14 million in total. He received a $1.3 million salary and another $4.4 million in incentives. He also received $356,706 in “all other compensation,” which includes use of the company’s aircraft, contributions to retirement plans and other compensation.

Among other McDonald’s executives: CFO Kevin Ozan received a pay package worth $10 million; Ian Borden, president of international, received $8.3 million, and McDonald’s USA President Joe Erlinger received $7.45 million.

www.restaurantbusinessonline.com...

I feel for the franchises I really do, but does basically 5.7 million a year plus 14 million in stocks and 350k for use of plane and retirement compensation sound fair to the average franchise owner? And that is just for one guy at the top. There are several.

Im not saying we should take anyone's wealth away im sure they worked hard for it, but why are we putting all the blame on Jerry and Sandra who serve you fries and listen to you complain the ice cream machine is broken and just want to be able to buy a new pair of sneakers and pay their rent? Try and see all sides.

Does anybody remember Quiznos? I remember Quiznos.

originally posted by: Threadbarer
Since 1978, CEO wages have raised 1200%. In comparison, the average worker wage has raised 15%. But do go on about how the average worker is wrong for asking for a wage that keeps up with inflation.

Are the small business owners who run these franchises driving that CEO salary growth? Or is it the execs the top of the corporations? Assuming its the later, what insensitive do they have to open their wallets when the middle class and lower classes keep squeezing each other back and forth.

I'm all for the wealthy paying their fair share ... exactly when will the Democrats start going after them? They do talk about it a lot.

a reply to: Shoshanna

Good point ..I'm not saying they don't deserve a raise...BUT why just fast-food? and not other minimum wage jobs?

a reply to: Dandandat3

If you're a business owner and you can't afford to pay your workers a living wage then you own a failing business.

You may be top # in your small town but at the end of the day you're closer to your $7.25/hr part-time employee than you are to the CEO of McDonald's.

One bad day/week/month/year and you're putting on the same uniform as the person you belittle.

Meanwhile, if the CEO of McDonald's has a bad day/week/month/year he can't afford his fifth yacht.

The lower and middle class have been bleeding wealth to the 1% since Reagan was able to convince everyone that giving all the money to the rich would benefit everyone. They need to relearn that the best thing they can do is flex their numbers and force the 1% to treat them as equals at the negotiating table.

originally posted by: Threadbarer
a reply to: Dandandat3

If you're a business owner and you can't afford to pay your workers a living wage then you own a failing business.

You may be top # in your small town but at the end of the day you're closer to your $7.25/hr part-time employee than you are to the CEO of McDonald's.

One bad day/week/month/year and you're putting on the same uniform as the person you belittle.

Meanwhile, if the CEO of McDonald's has a bad day/week/month/year he can't afford his fifth yacht.

The lower and middle class have been bleeding wealth to the 1% since Reagan was able to convince everyone that giving all the money to the rich would benefit everyone. They need to relearn that the best thing they can do is flex their numbers and force the 1% to treat them as equals at the negotiating table.

And? As I asked; I'm all for the wealthy paying their fair share ... exactly when will the Democrats start going after them?

a reply to: Dandandat3

You mean like the current tax bill on the table that would bring the amount billionaires owe more in line with the rest of the world?

a reply to: Threadbarer

Sure when is it going through? Never, because it is better for Democrats to play tribal games with their oposion instead of finding ways to compromise with them?

a reply to: Dandandat3

Last time I checked, Dems don't have a majority in the House.

originally posted by: Threadbarer
a reply to: Dandandat3

Last time I checked, Dems don't have a majority in the House.

So; you can only compromise when your in the majority of the house?

originally posted by: KKLOCO

Another angle is they are pushing for automation, with the result of socialism.

If they have 40 workers they get rid of 10 and put 28 on part time work to not pay any benefits which is 30% or more of your full compensation like medical 401k, PTO etc.

Then they put in kiosk to replace the workers let go. Whose life is better now?

We also need to understand that the pay scale is not linear with everyone else's pay. So someone working there 8 years as an assistant manager making 20.25 per hour still makes 20.25. Everyone else doesn't get a 5 dollar raise too.

a reply to: Dandandat3

You can only compromise when your opponent is willing to compromise.

As this very thread demonstrates, the GOP hates the working class and will always blame them for their woes.

a reply to: Dandandat3

It's all just different digits! I'm sure one day todays youth
will look back and say: Remember the good ole days when
a happy meal only cost twenty bucks?

However I often suffer bipolar moments that cause me to
become an overly optomistic sap so don't listen to me.

originally posted by: Threadbarer
a reply to: Dandandat3

You can only compromise when your opponent is willing to compromise.

As this very thread demonstrates, the GOP hates the working class and will always blame them for their woes.

Everyone says that their opponent isn't willing to compromise when they themselves aren't either. Liberals think so highly of themselves and they aren't anymore evolved than their conservative counterparts; they sound exactly the same.

a reply to: Xtrozero

ProTip: You're getting replaced by automation.

The owners of these companies don't have some red line in the ground where they're like, "Oh, if only they didn't want to get $2.50 bread over the $2.00 bread. I wouldn't have replaced them with the robot I've been spending money on to develop."

It doesn't matter what you do or what you get paid. Your boss is going to replace you with a robot the second it becomes viable.