Starting next month, fast-food workers in California will see a significant increase in their minimum wage, jumping to $20 an hour. This change comes as a result of legislation passed last year and signed by Governor Gavin Newsom.
While this may sound like good news for workers, some restaurant owners are already feeling the pressure. Shahan Derian, owner of Lee’s Hoagie House in Pasadena, expressed concerns that consumers will ultimately shoulder the burden of the wage increase. In response, some restaurants are planning to lay off workers and raise prices to offset the additional costs.
One major chain feeling the impact is Pizza Hut, which has announced plans to lay off approximately 1,200 workers in California. The company cites the wage increase as a contributing factor to the decision.
As businesses scramble to adjust to the new wage requirements, the effects on both workers and consumers remain to be seen. Supporters of the increase argue that it will help alleviate poverty and improve the standard of living for workers in the fast-food industry. Opponents, however, warn of potential job losses and increased prices for consumers.
With the wage hike set to take effect soon, it is clear that the implications will be far-reaching. Stay tuned for updates on how this change will impact the fast-food industry in California.
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