San Diego employers are voicing concerns over the impact of California’s new $20 minimum wage for fast food workers, warning that it will inevitably affect customers’ wallets. Beginning April 1, the price of “fast” will see an uptick.
Under this new legislation, fast food chains such as McDonald’s, Chipotle Mexican Grill, and Jack in the Box are planning menu price hikes to offset the mandated wage increase for their workers. This trend is expected to extend to other food businesses as well, as owners feel compelled to adjust their pricing strategies to remain competitive.
Brady Farmer, the owner of Chef Bradley Cook’s Catering, although not obligated to increase the minimum wage for his small business, expresses a desire to support his employees while acknowledging the financial strain it poses. He emphasizes the cumulative effect of covering additional costs associated with higher wages.
However, alongside pay raises, job cuts are anticipated as businesses grapple with the escalating cost of living, a sentiment echoed by Kim Phan, Co-Owner of Crab Hut. Phan highlights the relentless pace of inflation, emphasizing the struggle faced by businesses in maintaining profitability amidst rising expenses.
Despite the imperative of ensuring a living wage for all workers, concerns persist about the long-term efficacy of continually raising the minimum wage. Phan urges a comprehensive review of the broader economic impact, suggesting a need for alternative approaches to address income disparities.
Effective April 1, California’s fast food workers will enjoy the highest guaranteed base salary in their industry, further solidifying the state’s position with one of the nation’s highest minimum wages. Rather than solely relying on wage increases, Farmer proposes leveraging government resources to support workers and stimulate economic growth.
The legislation imposes specific criteria for businesses subject to the wage increase, with exceptions for certain establishments like those producing and selling their own bread. Non-compliance could lead to legal repercussions, as employees are empowered to initiate claims through the labor commissioner.
Despite the progress represented by the new $20 minimum wage, it’s viewed as just a starting point. The establishment of a Fast Food Council with the authority to adjust wages annually reflects a commitment to addressing income disparities in the industry over the coming years.